The interplay of technological innovation and business model innovation toward company performance

Abstract

This study aims to clarify the relation between technological innovation and business model innovation and their shared impact on the business success of medium and large enterprises. Drawing on the Resource-Based View, this paper offers a comprehensive research model that analyses the relationships between technological innovation and business model innovations and their impact on business success. Structural Equation Modelling is utilized for the analysis of a dataset collected in a Southeast European developing country among medium and large enterprises. The results show that technological innovation has a positive influence on business model innovation and that business model innovation positively impacts the success of a business. Finally, the results confirm the mediating role of business model innovation between technological innovation and company business success. This research adds to the existing literature by empirically investigating the relationship between technological innovation, business model innovation, and company success identifying an antecedent role in the relationship between technological innovation and business model innovation.

Business Model Innovation Based on New Technologies and Its Influence on a Company’s Competitive Advantage

“…Some authors [71,72] believe that BMI favors companies, but there are also those who state that BMI is not always beneficial [73,74]. Furthermore, according to [5] "few studies in the literature have addressed business model innovation, technological innovation, and their interplay towards a company's business performance, especially with empirical evidence". Even though some research exploring the influence of BMI based on specific technologies exist, they are too limited to make any general conclusions.…”

“…As stated by [3] BMI, Big Data and competitive advantage are still poorly explored. The current state of knowledge in the area of BMI, new technologies and competitive advantage was well summed up by [5], who state that despite the significant potential, far too little attention has been devoted to these aspects.…”

“…Additionally, there is a dispute between researchers on the role played by BMI based on new technologies for a company's competitive advantage. Some authors, e.g., [5], believe that BMI based on new technologies have a positive impact on competitive advantage, but there are also those who think otherwise. For example, [2] stated that "changing the business model by introducing technological and sustainable components puts companies at high risk".…”

Business Model Innovation in Transforming Economies: A Co-evolutionary Perspective for a Global and Digital World

“…Similarly, Wu, Guo, and Shi (2013) argue that, for IT-based business model innovation, the IT system is a key resource, because it contributes to value delivery by providing better access to knowledge for both firms and customers; it also enables firms to capture value as it reduces the costs of increasing revenue streams. Also, research on a sample of Eastern European firms shows that technological innovation is positively related to business model innovation, since firms may experiment with new business models to get maximum value from new products (Smajlovi, Umihanic, & Turulja, 2019).…”

“…First, it can change the competitive dynamics in the domestic environment. This happens because business model innovation can lead to improved business performance (e.g., Queiroz et al, 2020; Smajlovi et al, 2019; Wu et al, 2010) and to new ways of interacting with customers, suppliers, and local institutions.…”