Business Model Innovation in the Sharing Economy: integrating activity system and dynamic capabilities perspectives

The Digital Platform Small and Medium-sized Enterprises (DPSMEs) introduced to the world as a disruptive innovation with a new BMI. Yet, this innovation process is still unknown in literature. This paper discusses a new framework to investigate the dynamic process of innovating DPSMEs activities in BM. This study argues that BMI as change process of set of activities in BM (including; scan the environment, identify the possibilities and threats, and assess them) rely upon the abilities of firm to sense the global opportunities and threats, the ability to recognize and translate these opportunities to the need to change by developing different alternative of BM themes (NICE) before downsizing them and selecting a dominant theme, and the ability to redesign, reconfigure, and innovate BM elements (content, structure, and governance) by investing in new resources. Implications for research and practice are discussed.