Abstract: Business model innovation is one of the priorities of practitioners and interest of scholars and becoming increasingly critical as mere product or process innovations are insufficient in the current internet era. By innovating the business model as the result of the use of the internet, the firms can also stay ahead of the competition. Recently, internet marketing has fundamentally changed the paradigm of the business, altered the way in which information is shared and communicate to consumers and set an enormous influence on strategy and business model. To respond these changes, businesses need to have the capabilities to integrate, build and reconfigure internal and external competences or to create, extend or modify its resource base, i.e., organization dynamic capability. There are prior studies on the relationship between dynamic capability and business model innovation and dynamic capability and new technology adoption as well as new technology adoption and business model innovation. Most of these studies confirmed that there is a significance correlation amongst these variables of which some of them emphasize on the adoption to the internet or e-Commerce. This study investigates empirically in one integrated research model on the relationship between mentioned variables in internet marketing context. The survey was undertaken in Greater Jakarta, Indonesia to 215 firms in the field of consumer shopping goods. The outcome reveals that there is a direct impact of dynamic capability to internet marketing adoption, dynamic capability and business model innovation and internet marketing adoption to business model innovation. This study also reveals that the relationship between dynamic capability and business model innovation is partly mediated by internet marketing adoption.