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Gauging the influence of business model innovation on the performance of SMEs: primary evidence from Yantai, China

Author

Listed:
  • Chengcheng Cao
  • Azmawani Abd Rahman
  • XinTong Li
  • Wei Liu
  • K.M. Anwarul Islam

Abstract

Over the years, business model innovation (BMI) has attained incredible connotation in the arena of research vis-à-vis the performance of small and medium-sized enterprises (SMEs) in developed and developing countries. Hence, this paper aims to gauge the influence of BMI on the performance of SMEs in Yantai, China. The three dynamics, i.e., value creation innovation (VCI), value proposition innovation (VPI), and value capture innovation (VaCI), for measuring BMI were used to develop the conceptual framework. Using convenience sampling, a total of 211 questionnaires were administered and 180 questionnaires were found valid from 85 SMEs. Preliminary investigations were performed to ensure that normality, linearity, multicollinearity, and homoscedasticity assumptions were not violated. Three control measures were tested using multiple regressions to realise if they could predict the dependent variable, the performance of SMEs. The result depicts that VaCI has a significant influence on the performance of SMEs.

Suggested Citation

  • Chengcheng Cao & Azmawani Abd Rahman & XinTong Li & Wei Liu & K.M. Anwarul Islam, 2025. "Gauging the influence of business model innovation on the performance of SMEs: primary evidence from Yantai, China," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 37(1), pages 130-145.
    • Handle: RePEc:ids:ijbire:v:37:y:2025:i:1:p:130-145
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