One factor affecting business model innovation is the original template of what gets innovated. There isn’t much work on how it originates, and especially how new business models affect resource reconfiguration. This paper provides a process model of business model innovation. It centers on the sponsor-based business model through which firms monetize their offering through sponsors instead of setting prices to their customer base. We conduct an exploratory study of a business model innovation occurring in the GPS navigation industry. The results suggest eight distinct subprocesses that were grouped into three aggregated business model innovation processes enabled via resource re-configuration. This study contributes to the literature on strategic entrepreneurship by incorporating the ramifications of business model innovation into the theory on firms’ resource configuration and its underlying processes to enable strategic entrepreneurship.