Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs?
Shahrokh Nikou and
Mark de Reuver
Telecommunications Policy, 2019, vol. 43, issue 9
Digital transformation is requiring companies to rethink and innovate their business models (BMs). However, small- and medium-sized enterprises (SMEs) have scarce time and resources for experimenting with their BMs and implementing new strategies. This paper examines whether SMEs that undergo digital transformation perform better if they allocate more resources for BM experimentation and engage more in strategy implementation. An empirical study was conducted on 321 European SMEs that actively use social media, big data, and information technology to innovate their BMs. Furthermore, structural equation modelling showed positive overall firm performance effects of more resource allocation to BM experimentation and more engagement in practices of strategy implementation. These effects were mediated by BM experimentation practices and company innovativeness. Moreover, fuzzy-set qualitative comparative analysis (fsQCA) revealed the presence of equifinality by identifying different configurations in which these antecedent conditions affect overall firm overall performance. The results of two methodological approaches showed that SMEs may take different routes to improve their performance when digital transformation is changing their BM. This paper is one of the first to analyse how SMEs can handle the impact of digitalization by spending more time and effort on innovating their BMs. Practical and policy implications are discussed.
Keywords: Big data; Business model experimentation; Business model innovation; Digitalization; SME; Social media (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:telpol:v:43:y:2019:i:9:s0308596117304238
Ordering information: This journal article can be ordered from
http://www.elsevier. ... /30471/bibliographic
Access Statistics for this article
Telecommunications Policy is currently edited by Erik Bohlin
More articles in Telecommunications Policy from Elsevier
Bibliographic data for series maintained by Haili He ().