The Impact of Absorptive Capacity on Business Model Innovation with Mediation Role of Strategic Flexibility

In a highly leading industry in the world, such as the automotive industry, innovation in the business model is one of the concerns of which Iran Khodro Company is no exception. The purpose of this study is to investigate the effect of absorption capacity on business model innovation with the mediating role of strategic flexibility. The statistical population of the present study is 95 managers of Iran Khodro Company in operational, intermediate and advanced levels that the whole statistical population was selected as a statistical sample by census method. The research method is descriptive-analytical, the method of data collection is field, and the data collection tool is standard questionnaires. The validity of the questionnaire was confirmed through face and content validity, factor analysis, convergent and divergent validity, and its reliability was confirmed through Cronbach's alpha. Structural equation modelling tests using Smart-PLS were used to test the research hypotheses. The results of data analysis showed that the absorption capacity has a significant effect on business model innovation in Iran Khodro Company. Absorption capacity has a significant effect on strategic flexibility in Iran Khodro Company. Strategic flexibility has a significant effect on business model innovation in Iran Khodro Company. Strategic flexibility mediates between the absorption capacity and innovation of the business model in Iran Khodro Company.<br>