Business　model　innovation　(BMI)　is　the　crux　of　sustainable　competitive　advantage　(SCA),　whereas,　BMI　itself　is　basically　hooked　on　firms＇　intellectual　capital　management　(ICM).　Since　this　study　unveils　the　influence　of　ICM　on　firms＇　SCA　by　using　BMI　as　a　mediator　on　a　dataset　of　313　Chinese　SMEs.　The　results　indicate　that　ICM　and　BMI　have　a　significant　positive　influence　on　firms＇　SCA.　Moreover,　the　findings　revealed　a　partial　mediating　role　of　BMI　in　the　relationship　between　ICM　and　SCA.　Consequently,　it　is　argued　that　the　managers　and　owners　of　SMEs　might　stretch　substantial　attention　to　upholding　their　ICM　and　BMI,　which　jointly　build　firms＇　SCA　in　the　turbulent　markets.　Practical　implications　of　the　study　are　discussed.