Existing studies have overlooked how the distinct dynamic capabilities (DC) dimensions - sensing, seizing, and transforming - impact business model innovation (BMI). This empirical study addresses that gap, examining how environmental dynamism (ED) moderates their influence on incremental and radical BMI. The empirical findings extend DC and contingency theory by showing that sensing, seizing, and transforming differentially shape distinct BMI phases, while also highlighting their temporal dynamics. Moreover, ED exerts differentiated effects across incremental and radical BMI, clarifying how environmental conditions affect the deployment of DC. The study concludes with theoretical and practical implications, offering new insights into managing DC strategically under dynamic external conditions.
