While the role of the top management team (TMT) in shaping business model innovation (BMI) is well acknowledged, research has predominantly focused on TMT cognition, overlooking the impact of TMT dynamics on BMI. Addressing this gap, our study empirically examines how TMT turnover, tenure, and tenure diversity influence BMI across momentum and transition periods. Building on upper echelon theory, our findings reveal that high TMT tenure enhances stability-driven momentum periods by fostering cohesion and operational alignment. In contrast, transition periods benefit from moderate TMT turnover and tenure diversity, which disrupt entrenched routines, introduce fresh perspectives, and drive strategic realignment. These results emphasize that balanced TMT dynamics are crucial for fostering organizational adaptability and innovation. By demonstrating phase-specific influences of TMT dynamics, our study empirically contributes to the literature on BMI and organizational transformation and highlights the strategic importance of aligning TMT dynamics with the demands of distinct BMI phases.
