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

Authors: Chengcheng Cao; Azmawani Abd Rahman; XinTong Li; Wei Liu; K.M. Anwarul Islam

Addresses: School of Business and Economics, Universiti Putra Malaysia, 43400 UPM Serdang, Selangor, Malaysia ' School of Business and Economics, Universiti Putra Malaysia, 43400 UPM Serdang, Selangor, Malaysia ' School of Business and Economics, Universiti Putra Malaysia, 43400 UPM Serdang, Selangor, Malaysia ' City Graduate School, City University, 6100 Petaling Jaya, Selangor, Malaysia ' Department of Businesses Administration, The Millennium University, Dhaka, Bangladesh

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.

Keywords: business model innovation; BMI; small and medium-sized enterprises; SMEs; value capture innovation; VaCI; multiple regression; SPSS; quantitative; China.

DOI: 10.1504/IJBIR.2025.146041

International Journal of Business Innovation and Research, 2025 Vol.37 No.1, pp.130 - 145

Received: 13 Apr 2022
Accepted: 19 Jun 2022
Published online: 02 May 2025 *

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