The Key Drivers of Business Model Innovation in Developing Countries’ Firms: Survey of Micro and Small Scale Enterprises in Nigeria.
- August 4, 2021
- Posted by: rsispostadmin
- Categories: Business Administration, IJRISS, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue VII, July 2021 | ISSN 2454–6186
Dotun Olaleye Faloye, Idowu Owoeye, 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.
Keyword: Business Model Innovation, Determinants of BMI, Micro and Small Enterprises, Nigeria
I.INTRODUCTION
Micro, Small, and Medium-scale Enterprises (MSMEs) in developing countries generally, particularly in Nigeria, have been characterized by a lack of sustainable improvement in efficiency and productivity growth. There are indications in the literature that MSMEs lack steady improvement in efficiency and productivity growth because most operating MSMEs are not innovative. Few of them that are innovation incline focus only on technological innovation, but ignore business model innovation, which has to do with how to make money and profits. Combining technological innovation and business model innovation is an essential means for organisations to sustainably improve their competitiveness and performance (Wu, Shea, & Shiu, 2015).
