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Business model innovation and financial performance: a study of trading and services SMEs in UAE

Author

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  • Mohammed Ajmal
  • Shazi Shah Jabeen
  • Nitin Simha Vihari

Abstract

In today's competitive environment, innovation has its own importance in maintaining a competitive advantage. Business model innovation has carved a special niche in the age of dynamic business and revenue models. This study aims at exploring the effect of innovation at business model level towards the financial performance of the small and medium scale enterprises (SMEs) in Dubai, UAE. Data is collected from 262 respondents of 18 trading and services SMEs with a response rate of 54.58%. Multiple regression analysis is used to measure the casual effects of business model innovation dimensions such as value creation innovation, value capture innovation and value proposition innovation towards the financial performance of SMEs. Further cross tabulation among the demographic indicators and SME clusters underlines the rich demographic dividend of the respondents. The study proposes and validates a theoretical framework and further provides future directions with special reference to the SMEs in Dubai, UAE. The findings of the study can be generalised to any developing country context.

Suggested Citation

  • Mohammed Ajmal & Shazi Shah Jabeen & Nitin Simha Vihari, 2021. "Business model innovation and financial performance: a study of trading and services SMEs in UAE," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 26(3), pages 261-272.
    • Handle: RePEc:ids:ijbire:v:26:y:2021:i:3:p:261-272
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