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Business model innovation through dynamic capabilities in small and medium enterprises – Evidence from the German Mittelstand

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  • Heider, Anne
  • Gerken, Maike
  • van Dinther, Nicolas
  • Hülsbeck, Marcel

Abstract

German Mittelstand firms are part of an institutional setting characterized by tightly knit relationships with internal and external stakeholders, which makes it more difficult for these firms to engage in business model innovation. The topic of how these firms have remained competitive over time has attracted growing interest from researchers. Therefore, this study investigates how dynamic capabilities can promote business model innovation for a sample of SMEs from the German Mittelstand (n = 285) and tests whether the different characteristics of these firms moderate this relationship. We find that specific dynamic capabilities are needed for the various aspects of business model innovation. Medium-sized firms profit from higher engagement with outside stakeholders, while balancing efficiency and flexibility, and small firms are advised to concentrate on revising their resource configurations. Moreover, we identify whether the innovativeness of Mittelstand firms is rooted in their individual characteristics or is a function of this institutional setting.

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  • Heider, Anne & Gerken, Maike & van Dinther, Nicolas & Hülsbeck, Marcel, 2021. "Business model innovation through dynamic capabilities in small and medium enterprises – Evidence from the German Mittelstand," Journal of Business Research, Elsevier, vol. 130(C), pages 635-645.
    • Handle: RePEc:eee:jbrese:v:130:y:2021:i:c:p:635-645
    DOI: 10.1016/j.jbusres.2020.04.051
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    Cited by:

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    2. Bürgel, Tobias R. & Hiebl, Martin R.W. & Pielsticker, David I., 2023. "Digitalization and entrepreneurial firms' resilience to pandemic crises: Evidence from COVID-19 and the German Mittelstand," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
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    4. Anna Trunk & Hendrik Birkel, 2022. "No Resilience Without Partners: A Case Study on German Small and Medium-Sized Enterprises in the Context of COVID-19," Schmalenbach Journal of Business Research, Springer, vol. 74(4), pages 537-574, December.
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    6. Szewczyk, Justin & Kurzhals, Christopher & Graf-Vlachy, Lorenz & Kammerlander, Nadine & König, Andreas, 2022. "The family innovator’s dilemma revisited: Examining the association between family influence and incumbents’ adoption of discontinuous technologies," Journal of Family Business Strategy, Elsevier, vol. 13(4).
    7. Rasha A. A. ElNaggar & Mayar Farrag ElSayed, 2023. "Drivers of business model innovation in micro and small enterprises: evidence from Egypt as an emerging economy," Future Business Journal, Springer, vol. 9(1), pages 1-17, December.
    8. Wang, Zankai & Le, Thanh Tiep, 2022. "The COVID-19 pandemic’s effects on SMEs and travel agencies: The critical role of corporate social responsibility," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 46-58.
    9. Anne Heider & Marcel Hülsbeck & Leopold Schlenk-Barnsdorf, 2022. "The role of family firm specific resources in innovation: an integrative literature review and framework," Management Review Quarterly, Springer, vol. 72(2), pages 483-530, June.

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