Driving Fractions of Business Model Innovation (BMI) among the Micro, Small and Medium Enterprises (MSME)
DOI:
https://doi.org/10.21834/e-bpj.v9iSI19.5759Keywords:
firm performance;, MSME, Business Model Innovation Drivers, Business Model Innovation OutcomeAbstract
The purpose of this study is to investigate how changes in business models in Micro, Small, and Medium Enterprises (MSME) affect company performance. This quantitative study tested the connection between business model innovation drivers, innovation results, and MSME performance. 300 of the MSME owner data are recorded by the questionnaire and used this data collection method. The recorded data are evaluated using SEM-PLS. The results showed that the forces driving innovation in business models have a positive impact on their outcomes, so MSME managers gain knowledge about how innovative business models can support MSME to overcome resource limitations and achieve sustainable growth
References
Ammirato, S., Linzalone, R., & Felicetti, A. M. (2021). Business model innovation drivers as antecedents of performance. Measuring Business Excellence. https://doi.org/10.1108/MBE-01-2021-0012 DOI: https://doi.org/10.1108/MBE-01-2021-0012
Aspara, J., Hietanen, J., & Tikkanen, H. (2010). Business model innovation vs replication: Financial performance implications of strategic emphases. Journal of Strategic Marketing, 18(1), 39–56. https://doi.org/10.1080/09652540903511290 DOI: https://doi.org/10.1080/09652540903511290
Åström, J., Reim, W., & Parida, V. (2022). Value creation and value capture for AI business model innovation: a three-phase process framework. Review of Managerial Science, 16(7), 2111–2133. https://doi.org/10.1007/s11846-022-00521-z DOI: https://doi.org/10.1007/s11846-022-00521-z
Bouwman, H., Nikou, S., & de Reuver, M. (2019). Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs? Telecommunications Policy, 43(9), 101828.
https://doi.org/10.1016/j.telpol.2019.101828 DOI: https://doi.org/10.1016/j.telpol.2019.101828
Bouwman, H., Nikou, S., Molina-Castillo, F. J., & de Reuver, M. (2018). The impact of digitalization on business models. Digital Policy, Regulation and Governance , 20(2), 105–124. https://doi.org/10.1108/DPRG-07-2017-0039 DOI: https://doi.org/10.1108/DPRG-07-2017-0039
Dymitrowski, A., & Mielcarek, P. (2021). Business model innovation based on new technologies and its influence on a company’s
competitive advantage. Journal of Theoretical and Applied Electronic Commerce Research, 16(6), 2110–2128.
https://doi.org/10.3390/jtaer16060118 DOI: https://doi.org/10.3390/jtaer16060118
Foss, N. J., & Saebi, T. (2017). Fifteen Years of Research on Business Model Innovation: How Far Have We Come, and Where
Should We Go? Journal of Management, 43(1), 200–227. https://doi.org/10.1177/0149206316675927 DOI: https://doi.org/10.1177/0149206316675927
Foss, N. J., & Saebi, T. (2018). Business models and business model innovation: Between wicked and paradigmatic problems. Long
Range Planning, 51(1), 9–21. https://doi.org/10.1016/j.lrp.2017.07.006 DOI: https://doi.org/10.1016/j.lrp.2017.07.006
Gatautis, R., Vaiciukynaite, E., & Tarute, A. (2019). Impact of business model innovations on SME’s innovativeness and performance.
Baltic Journal of Management, 14(4), 521–539. https://doi.org/10.1108/BJM-01-2018-0035 DOI: https://doi.org/10.1108/BJM-01-2018-0035
Guo, H., Tang, J., Su, Z., & Katz, J. A. (2017). Opportunity recognition and SME performance: the mediating effect of business model
innovation. R and D Management, 47(3), 431–442. https://doi.org/10.1111/radm.12219 DOI: https://doi.org/10.1111/radm.12219
Haaker, T., Bouwman, H., Janssen, W., & de Reuver, M. (2017). Business model stress testing: A practical approach to test the
robustness of a business model. Futures, 89(November 2016), 14–25. https://doi.org/10.1016/j.futures.2017.04.003 DOI: https://doi.org/10.1016/j.futures.2017.04.003
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203 DOI: https://doi.org/10.1108/EBR-11-2018-0203
Hair Jr., J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107. https://doi.org/10.1504/ijmda.2017.10008574 DOI: https://doi.org/10.1504/IJMDA.2017.10008574
Hiteva, R., & Foxon, T. J. (2021). Beware the value gap: Creating value for users and for the system through innovation in digital energy services business models. Technological Forecasting and Social Change, 166(January), 120525. https://doi.org/10.1016/j.techfore.2020.120525 DOI: https://doi.org/10.1016/j.techfore.2020.120525
Hult, G. T. M., Hurley, R. F., & Knight, G. A. (2004). Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management, 33(5), 429–438. https://doi.org/10.1016/j.indmarman.2003.08.015 DOI: https://doi.org/10.1016/j.indmarman.2003.08.015
Kohli, R., & Melville, N. P. (2019). Digital innovation: A review and synthesis. Information Systems Journal, 29(1), 200–223. https://doi.org/10.1111/isj.12193 DOI: https://doi.org/10.1111/isj.12193
Kraus, S., Kanbach, D. K., Krysta, P. M., Steinhoff, M. M., & Tomini, N. (2022). Facebook and the creation of the metaverse: radical business model innovation or incremental transformation? International Journal of Entrepreneurial Behaviour and Research, 28(9), 52–77. https://doi.org/10.1108/IJEBR-12-2021-0984 DOI: https://doi.org/10.1108/IJEBR-12-2021-0984
Latifi, M. A., & Bouwman, H. (2018). Business model innovation and firm performance: The role of mediation and moderation factors. 31st Bled EConference: Digital Transformation: Meeting the Challenges, BLED 2018, 67–84. https://doi.org/10.18690/978-961-286-170-4.5 DOI: https://doi.org/10.18690/978-961-286-170-4.5
Latifi, M. A., Nikou, S., & Bouwman, H. (2021). Business model innovation and firm performance: Exploring causal mechanisms in SMEs. Technovation, 107(May 2020), 102274. https://doi.org/10.1016/j.technovation.2021.102274 DOI: https://doi.org/10.1016/j.technovation.2021.102274
Lopes, J. M., Gomes, S., Pacheco, R., Monteiro, E., & Santos, C. (2022). Drivers of Sustainable Innovation Strategies for Increased Competition among Companies. Sustainability (Switzerland), 14(9), 1–18. https://doi.org/10.3390/su14095471 DOI: https://doi.org/10.3390/su14095471
Madhavan, M., Sharafuddin, M. A., & Chaichana, T. (2022). Impact of Business Model Innovation on Sustainable Performance of Processed Marine Food Product SMEs in Thailand—A PLS-SEM Approach. Sustainability, 14(15), 9673. https://doi.org/10.3390/su14159673 DOI: https://doi.org/10.3390/su14159673
Palmié, M., Miehé, L., Oghazi, P., Parida, V., & Wincent, J. (2022). The evolution of the digital service ecosystem and digital business model innovation in retail: The emergence of meta-ecosystems and the value of physical interactions. Technological Forecasting and Social Change, 177(June 2021). https://doi.org/10.1016/j.techfore.2022.121496 DOI: https://doi.org/10.1016/j.techfore.2022.121496
Perelygina, M., Kucukusta, D., & Law, R. (2022). Digital business model configurations in the travel industry. Tourism Management, 88, 104408. https://doi.org/10.1016/j.tourman.2021.104408 DOI: https://doi.org/10.1016/j.tourman.2021.104408
Ricciardi, F., Zardini, A., & Rossignoli, C. (2016). Organizational dynamism and adaptive business model innovation: The triple paradox configuration. Journal of Business Research, 69(11), 5487–5493. https://doi.org/10.1016/j.jbusres.2016.04.154 DOI: https://doi.org/10.1016/j.jbusres.2016.04.154
Rummel, F., Hüsig, S., & Steinhauser, S. (2022). Two archetypes of business model innovation processes for manufacturing firms in the context of digital transformation. R and D Management, 52(4), 685–703. https://doi.org/10.1111/radm.12514 DOI: https://doi.org/10.1111/radm.12514
Schoormann, T., Stadtländer, M., & Knackstedt, R. (2022). Designing business model development tools for sustainability—a design science study. Electronic Markets, 32(2), 645–667. https://doi.org/10.1007/s12525-021-00466-3 DOI: https://doi.org/10.1007/s12525-021-00466-3
Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49. https://doi.org/10.1016/j.lrp.2017.06.007 DOI: https://doi.org/10.1016/j.lrp.2017.06.007
Teece, D. J., Pisano, G., & Shuen, A. (2009). Dynamic capabilities and strategic management. Knowledge and DOI: https://doi.org/10.1142/9789812834478_0002
Strategy, 18(April 1991), 77–116. https://doi.org/10.1142/9789812796929_0004 DOI: https://doi.org/10.1142/9789812796929_0004
Tidd, J., & Trewhella, M. J. (1997). Organizational and technological antecedents for knowledge acquisition and learning. R and D Management, 27(4), 359–375. https://doi.org/10.1111/1467-9310.00071 DOI: https://doi.org/10.1111/1467-9310.00071
Velu, C. (2017). A Systems Perspective on Business Model Evolution: The Case of an Agricultural Information Service Provider in India. Long Range Planning, 50(5), 603–620. https://doi.org/10.1016/j.lrp.2016.10.003 DOI: https://doi.org/10.1016/j.lrp.2016.10.003
Venkatraman, N., & Ramanujam, V. (1987). Measurement of Business Economic Performance: An Examination of Method Convergence. Journal of Management, 13(1), 109–122. https://doi.org/10.1177/014920638701300109 DOI: https://doi.org/10.1177/014920638701300109
Vicente, S., & Roata, D. (2016). Etnia Garífuna. R&D Management, 0(0), 1–6.
Wirtz, J., So, K. K. F., Mody, M. A., Liu, S. Q., & Chun, H. E. H. (2019). Platforms in the peer-to-peer sharing economy. Journal of Service Management, 30(4), 452–483. https://doi.org/10.1108/JOSM-11-2018-0369 DOI: https://doi.org/10.1108/JOSM-11-2018-0369
Zott, C., & Amit, R. (2010). Business model design: An activity system perspective. Long Range Planning, 43(2–3), 216–226. https://doi.org/10.1016/j.lrp.2009.07.004 DOI: https://doi.org/10.1016/j.lrp.2009.07.004
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Y. Johny Natu Prihanto, Simon Petrus Wenehenbun, Kris Ade Sudiyono
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.