There is a consensus that cognition impacts how ventures innovate their business models. However, little is known about which cognitive capabilities facilitate the venture's business model innovation (BMI). To investigate this phenomenon, this article reviews current concepts and literature on BMI and dynamic capabilities from a cognitive perspective. It derives the following conceptualizations: 1) Cognitive activities underpin BMI-related sensing, seizing, and reconfiguring. Thus, BMI can become a cognitive venture capability. 2) The business model as a mental model changes through sensemaking, new heuristics, and routines and beliefs. Those mental operations facilitate the systematic definition and adaptation of the business model, and its continuous innovation. 3) The maturing venture benefits from the routines and beliefs implicit in BMI, which ensures its competitive advantage.
