Business Model Innovation in Established SMEs: A Configurational Approach

Dorleta Ibarra,Jaione Ganzarain,Ali Ziaee Bigdeli,Juan Ignacio Igartua

doi:10.3390/joitmc6030076

Abstract

Small and medium-sized enterprises (SMEs) are at the heart of a nation’s wealth creation, employment generation and economic development. To help SMEs stay competitive in a fast-changing environment, researchers have recently emphasized the relevance of business model innovation (BMI). However, BMI and its performance are not linear but rather a complex phenomenon that depends on contingency factors. Based on configurational theory, this study extends the BMI research to SMEs, exploring the management approaches and BMI capabilities that foster BMI in established SMEs. To achieve this objective, this study of a purposive sample of 78 Spanish SMEs adopts the fuzzy set qualitative comparative analysis (fsQCA) method. Results suggest three substantive conclusions. First, long-term managerial orientation is a key factor for the development of BMI in SMEs. Second, five BMI capabilities (sensing customer needs, sensing technological options, conceptualizing and experimenting, collaborating and BMI strategy) support, in combination with the management approach, the development of BMI in established SMEs. Third, open innovation (open flows of knowledge regarding market needs and the potential of technologies, as well as collaboration with customers) are concrete preconditions of business model innovation. Therefore, managers in SMEs need both to actively consider their management approach towards BMI, and to develop some key dynamic capabilities in their organizations to implement BMI, an approach also valid for post-Covid-19 management.

Highlights

Small and medium-sized enterprises (SMEs) are an important part of a country’s wealth creation, employment generation and economic development [1]
Based on the research framework and the propositions posited, fuzzy set qualitative comparative analysis (fsQCA) was performed to obtain fine-grained results regarding the relationship between managerial orientation, innovative culture and BMI capabilities (BMICs) leading to business model innovation (BMI)
This research provides, from a qualitative comparative analysis perspective, new insights into the understanding of BMI in SMEs, empirically identifying different possible configurations for the management approach and BMICs involved in established SMEs

Summary

Introduction

Small and medium-sized enterprises (SMEs) are an important part of a country’s wealth creation, employment generation and economic development [1]. The fast-changing market environment is intensifying pressure on SMEs, leading to increasing interest from researchers and practitioners looking at business model innovation (BMI) through the lens of SMEs [2,3]. It is commonly accepted that business models represent the business logic of a company, describing how it creates, delivers and captures value [4], while BMI deals with the discovery of new and substantially different modes of value creation, value delivery and value capture in an existing business [5]. BMI allows firms to respond quickly to market opportunities, commercialize innovations through new business models, redefine existing markets or create new ones [6,7,8]. The power of BMI as a source of superior market performance has been emphasized [9].

Objectives

Results

Conclusion