Digital, Dynamic, and Entrepreneurial: A Structural Model of Business Model Innovation in Indonesian SMEs
Abstract
This study investigates the impact of internal organizational factors on innovation and performance outcomes among small and medium-sized enterprises (SMEs) in Indonesia. Adopting a quantitative approach, data were collected from 156 SMEs across diverse sectors using structured questionnaires. The data were analysed through Structural Equation Modelling with the Partial Least Squares (SEM-PLS) technique. The findings demonstrate that digital capabilities, dynamic capabilities, and strategic entrepreneurial behaviour positively and significantly influence business model innovation, which subsequently has a substantial impact on business performance. Furthermore, business model innovation serves as a mediating variable that bridges the influence of these three organizational capabilities on overall performance. The results offer valuable practical implications for SME stakeholders to prioritize digital transformation and innovation strategies, while also contributing theoretically to the literature on strategic management and business model innovation.References
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