With the increase of customer demands and rapid development of information and communication technologies, companies are confronting intense competition. World-wide firms are currently engaged in innovation to compete and sustain themselves in the dynamic changing market. Innovation has become a significant factor in surviving keen competition, satisfying demanding customers, and leveraging technological advances. Researchers and practitioners have been paying much attention to business model innovation recently. In highly complex, uncertain and fast-moving environments, enterprises need to change business models to create value and competitive advantage. Business model innovation is more important than product or service innovation to achieve firms' competitive advantage. The objective of this research is to understand the impact of knowledge interaction and adaptive learning on value co-creation and business model innovation. To test the relationship between business model innovation and value co-creation, and investigate the effects of knowledge interaction and adaptive learning on business model innovation, this research will conduct the structural equation modeling (SEM) analysis. The results are expected to reveal the framework of knowledge interaction, adaptive learning, business model innovation, value co-creation and provide insights for managers and future researchers.