Research on the Impact of BMI on Enterprise Performance Based on the Antecedence of Risk Perception

Yan Jingwen, Azmawani Abd Rahman () and Tong Tong
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Yan Jingwen: School of Business and Economics, Universiti Putra Malaysia, Serdang 43400, Malaysia
Azmawani Abd Rahman: School of Business and Economics, Universiti Putra Malaysia, Serdang 43400, Malaysia
Tong Tong: Department of Literature, Sichuan Minzu College, Kangding 626000, China

Sustainability, 2022, vol. 14, issue 23, 1-22

Abstract: Despite research showing that business model innovation (BMI) can enhance performance and create competitive advantages for small- and medium-sized businesses, these firms often do not achieve the expected outcomes. A business model can undergo irreversible fundamental changes due to Business Model Innovation (BMI), resulting in high levels of risk, uncertainty, and ambiguity. An analysis of 350 Chinese small- and medium-sized enterprises (SMEs) was conducted to determine the impact of innovating a business model on firm performance. Based on BMI calculations, this study investigates whether organizational capabilities and growth strategies impact business performance. Even though BMI is not directly correlated with firm performance, growth in efficiency and novelty, organizational capacities, and revenue are all fully mediated by growth in those factors. Revenue growth, organizational capacity, and efficiency affect a firm’s performance. The model is proven to be valid by this study. In addition to providing guidelines on implementing BMI based on a company’s strategy, this study contributes to the existing literature on BMI efforts for small- and medium-sized businesses.

Keywords: innovative business models; performance of companies; strategy of companies; organizational capabilities; SMEs (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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