Despite the increasing focus on business model innovation (BMI) and its organizational antecedents and consequences, research lacks insights on the impact of person-organization fit (POF), which describes the norm and value congruence of employees and their organization, on innovation dynamics at an organizational level. We address this gap by utilizing the concept of POF as a moderating variable and empirically examine its influence on the relationships between dynamic capabilities (DC) and BMI as well as between BMI and firm performance. Employing structural equation modeling, our findings reveal that POF has a positive moderating effect on the DC-BMI as well as the BMI-firm performance relationship. In contrast, our study shows that low levels of POF result in negative relationships between DC and BMI as well as BMI and firm performance. This negative interplay illustrates that POF is not only supportive in fostering innovation dynamics but adds POF as a crucial organizational variable to develop and capitalize on BMI within an organization. We further discuss the theoretical and practical implications of our study.
