Navigating turbulence: innovations in business models within competitive and technological settings
DOI:
https://doi.org/10.26740/bisma.v19n1.p28-53Keywords:
business model innovation, competitive intensity, innovativeness, SMEs, technological turbulenceAbstract
This study explores how external environmental factors, competitive intensity and technological turbulence, influence business model innovation strategies in creative-sector small and medium-sized enterprises (SMEs). Environmental pressures create distinct strategic pathways: competitive intensity increased innovation activity focused on incremental adjustments, while technological turbulence increases exploratory innovation. Specifically, it examines the roles of business model experimentation (BME) and business model practice (BMP) as adaptive strategic responses, and the mediating role of innovativeness in shaping firm performance. Data were collected from 118 creative SMEs in Malang, Indonesia, and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) to test a multi-path conceptual model. The results reveal that technological turbulence consistently drives both BME and BMP, highlighting its role as a key enabler of strategic renewal in dynamic environments. Competitive intensity, however, significantly influences BMP and innovativeness but has no direct effect on BME, suggesting that resource-constrained SMEs often favor incremental changes over riskier innovation paths. Innovativeness emerges as a significant mediator, especially in translating technological turbulence into improved performance outcomes. While BMP contributes directly to firm performance through process optimization and alignment with market expectations, BME does not show immediate performance benefits, reflecting its longer-term strategic nature. These findings underscore the importance of balancing exploration and exploitation in SME innovation strategies. The study offers theoretical contributions by integrating dynamic capabilities, contingency, and ambidexterity perspectives, and provides practical guidance for SMEs and policymakers aiming to foster resilience and adaptability in turbulent environments.
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Copyright (c) 2026 Brillyanes Sanawiri, Ari Irawan, Rosalita Rachma Agusti, Mohammad Iqbal, Rizal Alfisyahr
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