Economic Growth through Business Model Innovation and Technological Entrepreneurship

Abstract

To give managers insights into the controllable factors of product and process development, the identification and validation of the critical success factors has been in the focus of many researchers in the last decades. While exploring the field of business model innovation, it can be seen that there is a lack of quantified empirical studies, which investigate these factors, in this context. This paper aims to identify the success factors for business model innovation, evaluate the theoretical hypotheses statistically with partial least squares (PLS), and give recommendations for managerial actions on the basis of a cluster analysis. A cross-industry management survey was done to collect the sample data. The study consists of ten constructs, which are defined as follows: innovation culture, innovation competence, business model innovation process, network and partner collaboration, acquisition of technology and knowledge, clear product advantage, clear value proposition, customer orientation, customer retention and price management. To assess the complex nature of business model innovation, we choose a second-order SEM-model. The contribution of this paper to the management literature is achieved by providing concrete and validated entrepreneurial action strategies for superior economic growth.