Abstract
This paper presents the literature review and develops three research propositions to examine the relationship between organizational identity (identity) and business model (BM) innovation (BMI). While existing studies explains how identity differentiates one organization BM from another, significant gaps remain. Current literature lacks how identity influences the inter-related stages of BMI. To address this, this study offers two propositions regarding the effect of the alignment between identity and BM at each stage of the BMI process. Furthermore, acknowledging the distinction between incremental and radical BMI, the relationship between identity and BMI can be different according to the newness of BMI. Finally, studies give us practical implications of identity-management actions in organizations such as the alignment with identity and avoiding identity trap. It implies the need for identity management actions in each stage of BMI.