Title: Business model and financial performance of food SMEs: mediation by competitive advantage

Authors: Heena Chauhan; Anjani K. Singh; Suresh Sachdeva

Addresses: Amity Business School, Amity University, Sector – 125 Noida, Uttar Pradesh, India ' Amity Business School, Amity University, Sector – 125 Noida, Uttar Pradesh, India ' Department of Higher Education, Government of Madhya Pradesh, Bhopal, Madhya Pradesh, India

Abstract: Earlier studies established the direct effect of the business model (BM) on financial performance and competitive advantage but this study attempts to examine the mediator role of competitive advantage on the association of business model and financial performance. Primary data is collected from 262 food small and medium enterprise (SMEs) in New Delhi NCR using well-designed questionnaire and data is analysis is done using SPSS 20 and AMOS 21. Structural equation model was adopted to explain the path analysis. The relationship between business model and competitive advantage; and the relationship between competitive advantage and financial performance are significant in indirect effect. It confirms the full mediation of competitive advantage between business model and financial performance. This study will contribute to the existing research on explanatory roles of business model and effect of the mediating role of competitive advantage. In further studies, business model and financial performance can be attempted as mediators.

Keywords: business; business model; competitive advantage; financial performance; small and medium enterprise; SMEs.

DOI: 10.1504/IJBG.2021.111962

International Journal of Business and Globalisation, 2021 Vol.27 No.1, pp.113 - 131

Received: 29 May 2018
Accepted: 09 Nov 2018

Published online: 22 Dec 2020 *

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