Driving frugal and business model innovation: How different organizational capabilities contribute to business competitiveness

Beyond digital anxiety: Leveraging digital platform capability and entrepreneurial orientation for SME digital business model innovation

Reconciling people, planet, and profit: A business model innovation perspective in high-technology start-ups

ABSTRACT Based on resource orchestration theory, this study investigates how technology for social good (TSG) affects business model innovation (BMI) through the mediating role of dynamic capabilities (DC) and the moderating role of entrepreneurial orientation (EO). Analyzing a sample of 200 Chinese technology-based small and medium-sized enterprises (SMEs), we employ confirmatory factor analysis, hierarchical regression, and the bootstrap method to test our hypotheses. Empirical results show that TSG significantly and positively promotes BMI. DC partially mediate this relationship, and EO positively moderates the direct link between TSG and BMI. These findings advance the theoretical understanding of BMI drivers and provide implications for SMEs’ sustainable development in the digital economy.

ABSTRACT This study empirically investigates dynamic managerial capabilities (DMC) in the context of social media influencers (SMIs) operating in digital ecosystems and examines individual-level strategic orientations as antecedents of these capabilities. Survey data from 335 UK-based SMIs collected in February and March 2025 were analyzed using partial least squares structural equation modeling (PLS-SEM). Results show that all three DMC dimensions (human capital, social capital, and managerial cognition) contribute to business model innovation and performance, with managerial cognition emerging as the most critical driver. Market, technology, and entrepreneurial orientations emerged as antecedents of DMCs. In contrast, relative creative orientation (opposed to business orientation) shows a negative effect on DMC development. The study extends DMC theory to solo entrepreneurs in creative industries and provides guidance for creative entrepreneurs seeking to sustain innovation and performance in platform-driven markets.

ABSTRACT Climate change is raising regulatory, market, and supply‐chain pressures on small and medium‐sized enterprises (SMEs) to move beyond symbolic sustainability claims and demonstrate measurable progress toward the Sustainable Development Goals (SDGs). Yet the capability‐to‐impact pathway linking learning‐based resources to SDG‐aligned outcomes under climate transition pressure remains under‐specified. Integrating the resource‐based view with dynamic capability logic, we examine how organizational learning capability (OLC) enables SDG performance—operationalized as SDG 8 (decent work) and SDG 12 (responsible consumption and production) innovation outcomes—through business model innovation (BMI), and how strategic agility (SA) moderates these effects. Using a two‐wave, multi‐informant survey of 400 Taiwanese SMEs (1202 top‐management responses), we test a moderated mediation model with PROCESS (SPSS) and bootstrapped confidence intervals. Results show that BMI partially mediates the OLC–SDG performance relationship, and that the indirect effect is stronger when SA is high. These findings provide a micro‐level account of how climate‐ready capabilities convert learning into business model renewal and measurable SDG progress, extending RBV and dynamic capability perspectives in the SME sustainability domain.

ABSTRACT This empirical study investigates the relationship among Dynamic Capabilities (DCs), the quality and financial aspects of firm performance in small- and medium-sized enterprises (SMEs), and the mediating role of Business Model Innovation (BMI) in a developing country context. Following a pilot study of structured interviews with owners/managers, we conducted a questionnaire study on 160 Turkish SMEs. We tested the hypotheses using partial least squares structural equation modelling (PLS-SEM). Factor analysis findings confirm the multilayer character of our DCs construct. Owner-manager DCs are positively associated with financial performance, while employee-level DCs are positively associated with quality performance. BMI partially mediates the relationship between Owner-manager DCs and financial performance, and fully mediates the Owner-manager DCs-quality performance relationship. In contrast, BMI fully mediates the relationship between Employee-level DCs and financial performance, and partially mediates the Employee-level DCs-quality performance relationship. The study provides practical insights for SMEs operating in developing economies on how to translate their organisational capabilities to improved performance. It also extends the literature on the antecedents of BMI by examining a DCs framework enriched with organisational layers.

Purpose Digital business model innovation (BMI) is increasingly pivotal for sustaining competitive advantage in the digital economy, yet scholars know little about how traditional manufacturing firms discard obsolete beliefs and routines to seize digital opportunities. Grounded in dynamic capability and institutional theories, this study examines how unlearning enables digital BMI through dynamic capability and how institutional forces condition this mechanism. Design/methodology/approach The study employed a two-wave survey of 207 Chinese manufacturing firms to mitigate common method bias and strengthen causal inference. The model was tested using partial least squares structural equation modeling (PLS-SEM). Findings Our findings reveal that organizational unlearning exerts a positive direct effect on digital BMI. Moreover, dynamic capability mediates this relationship, indicating that unlearning drives digital BMI by renewing firms' capacity to sense and seize digital opportunities. Additionally, institutional forces moderate the unlearning–capability pathway: dysfunctional competition dampens, whereas government financial support amplifies the path. Originality/value Our study advances digital BMI research by pinpointing unlearning as a critical antecedent and by clarifying when its advantages are effective in the digital economy. These insights offer practical guidance for managers to dismantle legacy routines, invest in capability development and leverage public finance to counteract institutional voids. For policymakers, the findings underscore the importance of providing targeted financial support and strengthening intellectual property regimes to foster a positive environment for innovation.

Business model innovation as a channeler of agility and redundancy in the international expansion of food and beverage companies

Out-of-warranty repair of small household appliances remains limited due to high labour costs, spare part barriers, and low consumer willingness to pay for repair. This study introduces the Hobby Repair model, a structured approach that enables skilled individuals to repair products for modest compensation. Using a design-based research methodology, three field trials conducted in Belgium between 2022 and 2026 evaluated four operational sub-models ranging from independent repair to reuse store partnerships. Across all trials, 165 products were processed, achieving a 70% repair success rate and €15,550 in revenue. Results show that organisational configuration strongly influences repair viability: institutionally supported models achieved higher stability, success rates, and financial performance than independent pathways. Results indicate that hobby-based repair can expand repair capacity for low-value appliances that are typically excluded from professional repair markets, providing a scalable complementary pathway within circular economy systems.

The twin transition in emerging economies: Synergizing artificial intelligence and sustainable business model innovation in Thailand’s BCG economy

Circular economy business model innovation in community enterprises: A grounded theory study of Gros Michel Banana processing in Thailand

Digital leadership, digital platform capability and digital business model innovation of start-ups

The impact of artificial intelligence on startup business model innovation: exploring conditional effects of different strategic goals

This study investigates how pre-existing digitalization and technology adoption speed shape AI-driven business model transformation, with particular attention to the mediating role of employee competencies. Grounded in the resource-based view and digital transformation theory, the study employs structural equation modeling on survey data collected from 421 employees across various industries operating in Egypt. The results reveal that pre-existing digitalization and technology adoption speed directly and indirectly influence AI-driven business model transformation. Moreover, employee competencies significantly influence AI-driven business model transformation and partially mediate the effects of pre-existing digitalization and technology adoption speed on this outcome. This work contributes to the literature on artificial intelligence and digital transformation by demonstrating that employee competencies constitute a pivotal organizational mechanism linking the technological environment to business model innovation. Further, the study offers empirical insights into an emerging economy where the interplay between human capital and technological advancement has not been adequately studied.

ABSTRACT This article describes how an underserved community in a developing country develops a sustainable and participatory business model. We focus on a group of fishermen from the Ciénaga Grande de Santa Marta, in Pueblo Viejo, Colombia. The river where these economic activities occur is facing an environmental crisis that threatens productivity and local livelihoods. Using a participatory action research approach with a qualitative design, we conducted semistructured interviews, observations, and focus groups. As a result, a three layer business model canvas was cocreated with the community. The findings show how multisectoral cocreation can generate a sustainable model tailored to local needs, although socioenvironmental, political, and economic barriers hinder effective implementation. This research contributes to the literature on innovation, sustainable business models, and rural development, providing communities with tools to build and adapt their own business models as a guiding framework.

In the face of intensifying environmental crises and resource constraints, enterprises must integrate sustainable development principles into their core strategies. This paper explores the deep integration of green marketing innovation with circular economy theory, with a particular focus on remanufacturing as a key pillar of the circular economy and its strategic role in supply chain competition and sales channel optimization. The study shows that by implementing value-based pricing, quality assurance, reverse logistics design, and multi-channel distribution strategies, firms can effectively enhance the market acceptance and competitive advantage of remanufactured products. Furthermore, innovative business models such as product-as-a-service and leasing can further promote resource efficiency and waste reduction. This paper provides theoretical and practical insights for companies developing sustainable competitive strategies, policymakers refining circular economy regulations, and consumers transitioning toward greener behaviors, demonstrating that "green" and "growth" can be achieved synergistically.

• Reviews 73 studies on hybrid business models delivering energy access in LMICs. • Identifies five macro-level tensions that intensify internal hybrid tensions. • Finds that complex, value-network-oriented BMI supports tension management. • Shows hybrid organising challenges are most pronounced in African LMIC contexts. • Advances hybrid organising and Business Model Innovation literature by foregrounding the LMIC and SDG-specific gap. Hybrid organisations that aim to achieve economic and social objectives encounter well-defined hybrid tensions at the firm level. However, the hybrid organising literature has largely neglected empirical evidence from low- and middle-income countries (LMICs) where hybrid organisations operate in macroeconomically volatile national contexts marred by poor infrastructure, policy gaps, and skill shortages. Here, we conduct a systematic literature review, analysing 73 academic studies that discuss how business models achieve multiple goals through energy access in LMICs. Although internal tensions exist, their impact is exacerbated in LMICs by macro-level tensions. We identify five types of tensions affecting LMICs and examine how Business Model Innovation (BMI) can help manage them. Specifically, a complex BMI that focuses on the value network is needed, complemented by innovations in the value proposition and capture. Finally, our study focuses on an important yet under-researched context: LMICs, particularly in Africa, where SDG gaps are largest, offering insights into how to tackle grand challenges.

This study examines how disruptive sustainable business models (DSBMs) drive sustainability transitions across micro, meso , and macro levels of socio-technical systems. Analyzing 29 case companies, the research identifies five key drivers of DSBM development and scaling: technological experimentation, entrepreneurial initiative, user-driven innovation, industry collaboration, and regulatory support. These drivers interact with seven critical factors: industry dynamics, organizational structure, geographical context, innovation ecosystems, regulatory environment, policy coherence, and market readiness that shape how DSBMs evolve from niche innovations to regime-level change. Drawing on and extending the Multi-Level Perspective (MLP) framework, the study demonstrates how firms actively couple business model innovation with institutional change across levels. The findings highlight that DSBMs achieve large-scale impact by leveraging policy mixes that destabilize unsustainable practices while supporting innovation scaling. The role of adaptive governance frameworks and cross-sectoral policy coherence is crucial for aligning DSBMs with global sustainability goals, such as the Paris Agreement. Moreover, the study offers a novel contribution by conceptualizing DSBMs as recursive and cross-scalar instruments of transition agency. This research contributes to the literature on sustainability transitions by integrating business model innovation more explicitly into MLP theory and providing evidence of how firm-level agency interacts with structural change. • Disruptive sustainable business models operate across niche, regime, and landscape levels. • Business model innovation drives sustainability transitions beyond technological change. • Policy fragmentation constrains the scaling of disruptive sustainable business models. • Adaptive governance enables firms to challenge and reconfigure unsustainable regimes. • Evidence from 29 firms reveals sector-specific transition pathways.

Business model innovations and sectoral transformation: A bibliometric-systematic literature review of the oil and gas sector