The value of business model innovation (BMI) has been illustrated theoretically, but there is still a lack of empirical research. This paper, from the perspective of marketing dynamic capabilities (MDCs), identifies efficiency-centered and novelty-centered BMI, and explores the driving mechanism of BMI on market effectiveness (ME). Using the empirical data collecting from manufacturing SME, the findings show that efficiency-centered BMI has an inverted U-shaped relationship with competition advantage, yet it shows a U-shaped relationship with customer assets; novelty-centered BMI has a U-shaped relationship with competition advantage, but has an inverted U-shaped relationship with customer assets. Meanwhile, MDCs exerts positively moderating effects on the relationship of novelty-centered BMI and ME. These conclusions provide theoretical inspirations and managerial implications for allocating different BMI and developing MDCs with the purpose of boosting the ME.