The gradual embedding of elements of context in business models has brought the value-dominant logic transformation of enterprises driven by users' spatio-temporal consumer expectations from "product functionality" to "service utility" and then to "context experiences". The shift from "seller's market" to "buyer's market" is prevalent for most industries, because just improving product quality and service capabilities could not meet the ever-changing consumer expectations. The advanced interaction and collaborative evolution of value-dominant logic and the enterprise dynamic capabilities are important strategic means to respond to the changes in users' consumption expectations and achieve sustainable growth for enterprises. Context is the bridge between value-dominant logic evolution and the enterprise dynamic capabilities, and it has become a new driving force for business model innovation. In this situation, how to target digital contexts and combine users' sore points of consumption needs, consumption habits and consumption preferences to deconstruct, modify, and reconstruct business models to satisfy users' new demands and new experiences has become a hot and difficult research topic in context-driven business model innovation.#br#Therefore, taking M-Grass Ecology as the research object, this study adopts a combination of vertical single case study and procedural grounded analysis to explore the interactive evolution mechanism by which value-dominant logic evolution, enterprise dynamic capabilities, and contexts guide and adjust the dynamic matching of supply and demand between users' consumption expectations and the supply reality of enterprises. The research results indicate that (1) the value proposition of goods is focused on product functional values. In order to centralize the dominant logic of product functional value, enterprises utilize the dynamic capabilities of "Perception+ Integration" to meet consumers' product functional expectations based on users' consumption expectations and contextual standardized configurations. For the differently categorized goods, M-Grass has constructed a path on which the customers looking for goods can depend on the business logic of thousands of customers matching with one context for the same categorized goods. (2)The value proposition of customers is focused on service utility values. In order to concentrate the dominant logic of service utility value, enterprises utilize the dynamic capabilities of "Perception Ability+Integration Ability+Learning Ability" to satisfy consumers' service utility expectations based on users' consumption expectations and contextual personalized configuration. For different groups of consumers, M-Grass has achieved goods matching for customers depending on the business logic of one customer matching with thousands of contexts. (3) The value proposition of contexts is focused on the context experience values. For concentrating the dominant logic of scene experience values, M-Grass utilizes the dynamic capabilities of "perception ability+integration ability+learning ability+innovation ability" to meet consumers' context experience expectations based on users' consumption expectations and contextual dual path configuration. The context matching for customers depending on the business logic of thousands of customers matching with thousands of contexts is achieved so as to construct different interesting contexts. #br#From the perspective of the dynamic interaction of value-dominant logic evolution, enterprise dynamic capability advancement and context iteration, this study discusses how the contexts empower business model innovation based on the collaborative evolution of value-driven logic evolution and enterprise dynamic capability advancement in the Chinese context. The empowered business model innovation based on the integration of "supply chain-value chain-context chain" is proposed. At the same time, the evolution of value-driven logic utilizes contexts to stimulate changes in user consumption expectations based on context driven enterprise dynamic capability enhancement, thereby stimulating the evolution of value driven logic. Enterprises should timely and proactively integrate the elements of context into their business models, promote the evolution of value-dominant logic and enhance their dynamic capabilities, and dynamically choose different context-based business model innovation strategies. This study provides theoretical support for the ecological innovation practice of enterprise business models, compensates for the shortcomings of research on cross-sectional data from a static perspective , and also enriches the context-driven innovation theory.#br#