TY - JOUR
T1 - Digitalization, business models, and SMEs
T2 - How do business model innovation practices improve performance of digitalizing SMEs?
AU - Bouwman, Harry
AU - Nikou, Shahrokh
AU - de Reuver, Mark
N1 - Green Open Access added to TU Delft Institutional Repository ‘You share, we take care!’ – Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.
PY - 2019
Y1 - 2019
N2 - 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.
AB - 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.
KW - Big data
KW - Business model experimentation
KW - Business model innovation
KW - Digitalization
KW - SME
KW - Social media
UR - http://www.scopus.com/inward/record.url?scp=85066081704&partnerID=8YFLogxK
U2 - 10.1016/j.telpol.2019.101828
DO - 10.1016/j.telpol.2019.101828
M3 - Article
AN - SCOPUS:85066081704
VL - 43
JO - Telecommunications Policy
JF - Telecommunications Policy
SN - 0308-5961
IS - 9
M1 - 101828
ER -