Business model innovation and its impact on corporate sustainability

Abstract

This paper aims to examine the impact of Business Model Innovation on Corporate Sustainability in companies in the Western Balkan countries, particularly in Kosovo, Albania, and North Macedonia. The variables used for the purpose of this study include: Business Model Innovation (BMI), Managerial Capabilities (MC), Employee Empowerment and Decentralization (EED), Employee Training (ET), and Government Policies (GP) as independent variables and Government Policies (GP) as a dependent variable. This study has followed the quantitative methodology approach, using Partial Least Square - Structural Equation Modeling to test the research hypotheses and derive credible results. The questions of the questionnaire were borrowed from previous studies belonging to the same field and a total of 168 answers were collected through online distribution of questionnaires from mainly large corporations in three countries: Kosovo, Albania, and Macedonia.The results have shown that there is a positive significant impact of Business Model Innovation on Corporate Sustainability. Findings support the main hypothesis of the research, that the high levels of Business Model Innovation impact high levels of Corporate Sustainability. Despite this, the findings indicated a positive relationship between employee training, employee empowerment and decentralization, government policies, and corporate sustainability. Besides these, the results also verified the other hypotheses of this research. Meanwhile, managerial skills negatively affected corporate sustainability, thus rejecting the next research hypothesis.Due to the positive impact of Business Model Innovation on Corporate Sustainability, this paper suggests businesses in Kosovo, Albania and Macedonia should switch to digitalization of business operations. Throughout this paper, the benefits and advantages of Business Model to business sustainability will be further explored.