Abstract
Improving the sustainable development of new ventures and helping them survive and develop in the entrepreneurial environment are important research issues. Business model innovation is considered as a potential way for new ventures to enhance their sustainable development capability and performance. Although previous studies have pointed out that there is a positive linear relationship between business model innovation and sustainable development, little research has found the nonlinear relationship between them, as well as the moderating effects of competitive strategy innovation and strategy flexibility. In this study, an empirical model was established to test our hypotheses and answer our research questions. Analysis of data collected from 326 questionnaires shows that an inverted-U relationship exists between business model innovation and sustainable development such that new ventures with low or high business model innovation have worse sustainable development than new ventures with appropriate business model innovation. Moreover, this paper finds that competitive strategy innovation and strategic flexibility positively moderate the inverted-U relationship between business model innovation and sustainable development of new ventures. From a theoretical perspective, this study offers a model with which to understand the impacts of business model innovation, and contributes significantly to the research on new ven- tures. From a practical perspective, this paper provides new insights into the management of new ventures and recommends several practical strategies for managers and practitioners.
Highlights
New ventures have become a popular field of study in the business management literature [1]
The purpose of this paper is to examine the potential relationship between business model innovation and the sustainable development of new ventures, as well as the moderating effects of competitive strategy innovation and strategic flexibility
Based on what was discussed above, this paper considers that an inverted-U relationship exists between business model innovation and sustainable development, i.e., low or high business model innovations have worse sustainable development performance than new ventures with appropriate business model innovation
Summary
New ventures have become a popular field of study in the business management literature [1]. The world is presently undergoing an important stage of economic restructuring in which enterprises are required to change their capacities and adapt to policy and environmental changes. Previous studies [2] have found that the failure of new ventures is mainly from risk-taking and market changes. Improving sustainable development of new ventures in the entrepreneurial environment has become an important research issue. The sustainable development of enterprises refers to the process of continuously pursuing the business objectives and ensuring the core competitiveness of enterprises [3,4,5]. New ventures should ensure that they have continuous profitability in professional fields, and have sustainable competitive advantages and sustainable innovations [6]
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