“…Initially developed in the field of manufacturing and dubbed agility (D'Aveni & Gunther, 1994;Yusuf, Sarhadi, & Gunasekaran, 1999), the concept of flexibility (Carlsson, 1989) has recently attracted the attention of service management scholars as well (Aranda, 2003;Arias-Aranda, Bustinza, & Barrales-Molina, 2011;Karmarkar, 2004;Menor & Mason, 2001). Service firms need to adapt rapidly to changing global environments, innovating their business models to react to new challenges and market opportunities (Nair, Nisar, Palacios, & Ruiz, 2012;Wright, Snell, & Dyer, 2005). While the importance of flexibility (Anand & Ward, 2004;Narasimhan, Swink, & Kim, 2006) and its role in business model innovation (Johnson, Christensen, & Kagermann, 2008;Zott, Amit, & Massa, 2011) is widely recognized in the literature, the core competence strategies required for the dynamic capability of flexibility to enable business model innovation have not gained much attention.…”