The Impact of Technological Innovation on Competitive Advantage: The Effect of Business Model Transformation as a Moderator

Abstract

This study examines the impact of technological innovation on competitive advantage and investigates the moderating role of business model transformation in this relationship. Using a quantitative research design and data collected through a structured questionnaire, the study analyses the direct and interaction effects among the variables. The results reveal that technological innovation has a strong and significant positive influence on competitive advantage, highlighting its role as a key strategic driver of superior organisational performance. However, the findings also show that business model transformation significantly moderates this relationship in a negative direction, indicating that extensive transformation may reduce the effectiveness of technological innovation in enhancing competitive outcomes. These results underscore the importance of aligning innovation initiatives with carefully managed business model changes to avoid potential disruptions and maximise competitive advantage. The study contributes to the literature by offering empirical evidence on the nuanced interplay between innovation, transformation, and competitiveness.