Business model (BM) innovation is vital for today’s businesses. However, BM innovations can be irreversible, and therefore, in comparison to product, service or process innovation, entail bigger risk and ambiguity. Understanding the way in which BM innovation exerts influences over firm’s performance would help business-owners to be more effective. Based on a systematic literature review, a model to examine how BMI impacts firm performance through mediating and moderating factors was developed. Based on in-depth analysis of 37 articles, we identified twenty moderating factors classified in four groups, i.e., Firm-Characteristics, Industry-Characteristics, BM Implementation, and BM Practices, and ten mediating factors, categorized in three sub-groups, i.e., Revenue Growth, Efficiency Growth, and Enhancing the Organizational Capabilities. This paper offers the grounding for empirical research as well contribute to the development of tools to assess the effectiveness of the BMI.