IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v5y2021i07p148-157.html
   My bibliography  Save this article

The Key Drivers of Business Model Innovation in Developing Countries’ Firms: Survey of Micro and Small Scale Enterprises in Nigeria

Author

Listed:
  • Dotun Olaleye Faloye

    (Department of Business Administration, Adekunle Ajasin University, Akungba Akoko, Nigeria)

  • Idowu Owoeye

    (Department of Business Administration, Adekunle Ajasin University, Akungba Akoko, Nigeria)

  • Kunle Jayeola

    (Department of Business Administration, Adekunle Ajasin University, Akungba Akoko, Nigeria)

Abstract

Recently, the attention giving to Business Model Innovation (BMI) and also the amount of literature on BMI had been increased. However, controversies among scholars and business practitioners on the generic factors that drive BMI in firms mostly small businesses in developing countries are yet to be settled. Hence, this study sought to determine the key drivers of BMI in Nigeria’s small businesses. Survey research design was employed, and items of instrument developed by previous researchers were adapted. The respondents of this study were Micro and small businesses owners/representatives in the study area, and data from 142 of them were subjected to Principal Component Analysis. The study employed an Orthogonal method of rotation using the Varimax approach. This study finding revealed that customer satisfaction and retention, market opportunities, regular assessment of operations, employee’s capabilities, increment in revenue generation, and efficient channel functions are the key discriminating factors driving BMI in micro and small business enterprises (MSEs) in Nigeria. Thus, the study concludes that employing these attributes may influence performance-related outcomes in Nigeria MSEs. .

Suggested Citation

  • Dotun Olaleye Faloye & Idowu Owoeye & Kunle Jayeola, 2021. "The Key Drivers of Business Model Innovation in Developing Countries’ Firms: Survey of Micro and Small Scale Enterprises in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(07), pages 148-157, July.
    • Handle: RePEc:bcp:journl:v:5:y:2021:i:07:p:148-157
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-5-issue-7/148-157.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/virtual-library/papers/the-key-drivers-of-business-model-innovation-in-developing-countries-firms-survey-of-micro-and-small-scale-enterprises-in-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Adamantia G Pateli & George M Giaglis, 2004. "A research framework for analysing eBusiness models," European Journal of Information Systems, Taylor & Francis Journals, vol. 13(4), pages 302-314, December.
    2. Volkmar Denner, 2017. "Business Model Innovation: Some Key Success Factors at Bosch," Management for Professionals, in: Christoph Franz & Thomas Bieger & Andreas Herrmann (ed.), Evolving Business Models, pages 61-74, Springer.
    3. Gerard George & Adam J. Bock, 2011. "The Business Model in Practice and its Implications for Entrepreneurship Research," Entrepreneurship Theory and Practice, , vol. 35(1), pages 83-111, January.
    4. Hua Wang & Chris Kimble, 2016. "How External Factors Influence Business Model Innovation: A Study of the Bosch Group and the Chinese Automotive Aftermarket," Post-Print halshs-01353507, HAL.
    5. Kurt Matzler & Dagmar E. Abfalter & Todd A. Mooradian & Franz Bailom, 2013. "Corporate Culture As An Antecedent Of Successful Exploration And Exploitation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 17(05), pages 1-23.
    6. Firman Jatnika & Nury Effendi & Erie Febrian & Mokhamad Anwar, 2019. "Determinants of Business Models Innovation of Islamic Bank in Indonesia," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 64-82.
    7. Voelpel, Sven & Leibold, Marius & Tekie, Eden & von Krogh, Georg, 2005. "Escaping the Red Queen Effect in Competitive Strategy:: Sense-testing Business Models," European Management Journal, Elsevier, vol. 23(1), pages 37-49, February.
    8. Boumediene Ramdani & Ahmed Binsaif & Elias Boukrami, 2019. "Business model innovation: a review and research agenda," New England Journal of Entrepreneurship, Emerald Group Publishing Limited, vol. 22(2), pages 89-108, October.
    9. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 529-555, June.
    10. Sabrina Schneider & Patrick Spieth, 2013. "Business Model Innovation: Towards An Integrated Future Research Agenda," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-34.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dotun Olaleye Faloye & Idowu Owoeye & Kunle Jayeola, 2021. "The Key Drivers of Business Model Innovation in Developing Countries’ Firms: Survey of Micro and Small Scale Enterprises in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(7), pages 148-157, July.
    2. Qingfeng Tian & Shuo Zhang & Huimin Yu & Guangming Cao, 2019. "Exploring the Factors Influencing Business Model Innovation Using Grounded Theory: The Case of a Chinese High-End Equipment Manufacturer," Sustainability, MDPI, vol. 11(5), pages 1-16, March.
    3. Patrick Spieth & Sabrina Schneider, 2016. "Business model innovativeness: designing a formative measure for business model innovation," Journal of Business Economics, Springer, vol. 86(6), pages 671-696, August.
    4. OGREAN Claudia, 2015. "Business Models To Meet The Challenges Of The Global Economy. A Literature Review," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 67(6), pages 127-146, December.
    5. Sascha Kraus & Alexander Brem & Miriam Schuessler & Felix Schuessler & Thomas Niemand, 2019. "Innovative Born Globals: Investigating the Influence of Their Business Models on International Performance," World Scientific Book Chapters, in: Alexander Brem & Joe Tidd & Tugrul Daim (ed.), Managing Innovation Internationalization of Innovation, chapter 11, pages 275-328, World Scientific Publishing Co. Pte. Ltd..
    6. Bouncken, Ricarda B. & Fredrich, Viktor, 2016. "Business model innovation in alliances: Successful configurations," Journal of Business Research, Elsevier, vol. 69(9), pages 3584-3590.
    7. Zhang, Hongfang & Xiao, Huilin & Wang, Yanling & Shareef, Mahmud A. & Akram, Muhammad Shakaib & Goraya, M. Awais Shakir, 2021. "An integration of antecedents and outcomes of business model innovation: A meta-analytic review," Journal of Business Research, Elsevier, vol. 131(C), pages 803-814.
    8. Anna-Greta Nyström & Miia Mustonen, 2017. "The dynamic approach to business models," AMS Review, Springer;Academy of Marketing Science, vol. 7(3), pages 123-137, December.
    9. Belussi, Fiorenza & Orsi, Luigi & Savarese, Maria, 2019. "Mapping Business Model Research: A Document Bibliometric Analysis," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    10. Elias Carayannis & Stavros Sindakis & Christian Walter, 2015. "Business Model Innovation as Lever of Organizational Sustainability," The Journal of Technology Transfer, Springer, vol. 40(1), pages 85-104, February.
    11. Matthias Filser & Sascha Kraus & Matthias Breier & Ioanna Nenova & Kaisu Puumalainen, 2021. "Business model innovation: Identifying foundations and trajectories," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 891-907, February.
    12. Thorsten Schoormann & Maren Stadtländer & Ralf Knackstedt, 2022. "Designing business model development tools for sustainability—a design science study," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 645-667, June.
    13. Marko Peric & Jelena Durkin & Vanja Vitezic, 2017. "The Constructs of a Business Model Redefined: A Half-Century Journey," SAGE Open, , vol. 7(3), pages 21582440177, September.
    14. Arturo Orea Rocha & Carmelo García Pérez & Fernando Crecente Romero & Maria Teresa del Val Núñez, 2018. "The Business Model and its Core Elements. Proposal of Definition and Table of Core Elements," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 12(4), December.
    15. Battistella, Cinzia & De Toni, Alberto F. & De Zan, Giovanni & Pessot, Elena, 2017. "Cultivating business model agility through focused capabilities: A multiple case study," Journal of Business Research, Elsevier, vol. 73(C), pages 65-82.
    16. Raphaël Maucuer & Alexandre Renaud, 2019. "Business Model Research: A Bibliometric Analysis of Origins and Trends," Post-Print hal-01918188, HAL.
    17. Burmeister, & Lüttgens, & Piller,, 2016. "Business Model Innovation for Industrie 4.0: Why the "Industrial Internet" Mandates a New Perspective on Innovation," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 70(2), pages 124-152.
    18. Müller, Julian Marius & Buliga, Oana & Voigt, Kai-Ingo, 2018. "Fortune favors the prepared: How SMEs approach business model innovations in Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 2-17.
    19. Ferreras-Méndez, José Luis & Olmos-Peñuela, Julia & Salas-Vallina, Andrés & Alegre, Joaquín, 2021. "Entrepreneurial orientation and new product development performance in SMEs: The mediating role of business model innovation," Technovation, Elsevier, vol. 108(C).
    20. Sven M. Laudien & Birgit Daxböck, 2016. "Path dependence as a barrier to business model change in manufacturing firms: insights from a multiple-case study," Journal of Business Economics, Springer, vol. 86(6), pages 611-645, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:5:y:2021:i:07:p:148-157. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://www.rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.