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The COVID-19 pandemic disrupted existing business models, forcing managers in the manufacturing industry to look for new strategies that could help their firms bounce forward. The situation calls for a rethink, redesign, and development of new business models (BMs) using digital capabilities. Drawing from the dynamic capability theory, this paper investigates how digital transformation (DT) influences business model innovation (BMI) through technology orientation (TO). The paper further examined the moderating role of competitive intensity (CI) in the DT-TO link.

The model was tested using survey data from 208 senior managers in manufacturing firms in Ghana. SPSS 23 and structural equation modeling (SEM) were used for the analyses.

The results revealed that both DT and technology orientation directly influence all four dimensions of BMI. The result further showed that technology orientation indirectly mediates the relationship between DT and all four dimensions of BMI. The findings further showed that the DT-BMI link is amplified at varying levels of competitive intensity.

Although recent research has highlighted the pertinence of embracing DT to foster innovation, to the best of the authors’ knowledge, this study among the first few attempts to shed light on the role of DT for sensing, seizing, and (re) configuring firms’ resources to renovate manufacturing business models to stay competitive. In addition, to date, to the best of the authors’ knowledge, no study exists that has examined the conditions and mechanism through which optimal BMI can be achieved through DT. The paper offer practical guidance to managers of manufacturing firms by developing an actionable framework to effectively leverage digital transformation for business model innovation through enhanced technology orientation, offering clear guidelines for assessing and aligning organizational capabilities with digital strategies.