Abstract
ABSTRACT This study scrutinises the influence of the internal resources/capabilities; financial capabilities, Information Technology (IT) capabilities and entrepreneurial orientation on new venture performance with Business Model Innovation (BMI) as a mediator. We tested the hypotheses on the basis of a data set of 308 new ventures of Pakistan. The results indicate that all three resources/capabilities have a significant influence on new venture performance as well as on BMI. Moreover, BMI fully mediates the relationship between IT capabilities and new venture performance while it plays a partial mediating role between financial capabilities and new venture performance as well as between entrepreneurial orientation and new venture performance. Our study recommends new enterprises emphasise their internal resources/capabilities to innovate their business model in a way to survive in the long run in the competitive market.
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