Dynamic Capabilities, Business Model Innovation, and Customer Retention in the Nigerian Telecommunications Industry (2015-2025): A Desk Review

Abstract

This study examines how dynamic capabilities influence customer retention in the Nigerian telecommunications industry, with business model innovation (BMI) as a mediating mechanism. Using a systematic
desk-review methodology anchored in Dynamic Capabilities Theory (Teece et al., 1997; Teece, 2007, 2018), Business Model Innovation Theory (Foss & Saebi, 2017), and the Resource-Based View (Barney, 1991), the paper synthesizes peer-reviewed literature, industry reports, and operatorlevel case evidence spanning 2015 to 2025. The review finds that sensing, seizing, and reconfiguring capabilities collectively enable telecom operators to innovate their business models through fintech integration, infrastructure sharing, digital bundling, and ecosystem partnerships, which in turn strengthen customer loyalty and reduce subscriber churn. Operators
with superior dynamic capabilities (MTN, Airtel) navigated regulatory shocks (notably the NIN–SIM linkage policy) and technological disruption more effectively than those without (Globacom, Visafone, Starcomms). The study contributes a theoretically integrated conceptual model linking dynamic capabilities → BMI → customer retention and offers practical recommendations for telecom managers and policymakers in Sub-Saharan Africa. Limitations and future research directions, including the need for large-scale quantitative testing are identified.