The Effect of Business Model Innovation and Entrepreneurship Orientation on MSMESs Performance Through Business Agility Moderated Financial Literature

Abstract

This study aims to examine the effect ofbusiness model innovation and entrepreneurial orientation towards MSMES performance through business agility moderated by financial literacy.The approach used in this research is quantitative. In this study, researchers used incidental sampling which obtained 100 respondents. The analysis used in this study is a structural approach to the Equation Model (SEM) assisted by the smart PLS. application (Ghozali & Latan, 2015). Based on the research findings, it can be concluded that entrepreneurial orientation, business model innovation, and business agility affect the performance of MSMESs, business model innovation and entrepreneurial orientation are known to affect business agility. Meanwhile, financial literacy has not been able to moderate the relationship between business agility and MSMES performance. Business agility is able to mediate the relationship between business model innovation and Entrepreneurial Orientation on the performance of MSMESs.

Entrepreneurial Agility: a key to notch ‘Sustainable Business Performance’ in IT-Enterprises of Pakistan

“…From the output, it has been found that entrepreneurial agility has significant (positive) relationships with sustainable business performance and business model innovation. The outcomes of current study are concurrent with the previous outcomes of various researchers in different contexts and settings (Akhlagh et al, 2022;Chakravarty et al, 2013;Hindrawati et al, 2022;Lee et al, 2008;Serda et al, 2013;Saraswati et al, 2022;Troise et al, 2023;Waty et al, 2022). Likewise, business model innovation has also significant (positive) association with sustainable business performance.…”

“…IJMRES 13(3) 2023, 133-156 Entrepreneurial agility can be cognitive ability of managers and strategic ability of an organization to anticipate the upcoming challenges/entrepreneurial opportunities and redesign the business model accordingly (Mancuso et al, 2023). In this essence, the direct connotation of entrepreneurial agility and business model innovation is evidenced by multiple researchers across the globe (Akhlagh et al, 2022;Saraswati et al, 2022;Troise et al, 2023;Waty et al, 2022). However, the following hypothesis is framed; H2: Entrepreneurial agility (EA) has positive association with business model innovation (BMI).…”

“…Entrepreneurial agility doesn't restrict to giant or leading business organizations, it is need of every organization to survive in highly competitive technological era. However, entrepreneurial agility is not inherited trait of managing business efficiently; it can be created, developed and sustained to survive in vibrant and chaotic business environment (Saraswati et al, 2022) . However, multiple researchers claimed that entrepreneurial agility is the key to bring business model innovation (Akhlagh et al, 2022;Troise et al, 2023).…”

Management of Innovations by Increasing the Efficiency of Innovation Activity of the Enterprise

“…Businesses may proactively reinvent their business models to preserve their market positions and seize new possibilities by utilizing cutting-edge technology like artificial intelligence [7]. Additionally, business model innovation must be included if company agility and overall performance are to be improved, especially for small and medium-sized businesses [8]. Businesses may become even more resilient and long-lasting in the face of changing market needs and obstacles by adopting sustainable business strategies and ideas like frugal innovation [9].…”