Although researchers recognize the need for established market-centered
business models that address and satisfy consumer's needs, little
research has been done on the link between a customer's perception and a
business model innovation (BMI). We addressed this research opportunity
by conducting a case study encompassing 394 respondents to explore how a
BMI affects customers' brand perceptions, distinguishing between their
brand trust, brand loyalty, and brand equity. We conceptualize a BMI
from an industrial network perspective and decompose the effect of
different BMI dimensions: value offering innovation (VOI), value
architecture innovation (VAI), and revenue model innovation (RMI). Our
results show that a VOI has a positive impact on brand equity and a
negative impact on brand loyalty. Further, a VAI has an inverted
u-shaped relationship with brand trust, whereas an RMI has a positive
impact on brand trust. In turn, brand trust fully mediates the
relationships between an RMI and brand loyalty and an RMI and brand
equity. Our insights contribute to BMI research from a customer-centric
perspective. In particular, we extend our knowledge of BMIs by offering a
more granular understanding of how different BMI dimensions affect a
customer's brand perceptions. We contribute to industrial networks
literature by offering rich and novel insights to purposefully manage an
industrial network's BMI.