How to drive business model innovation for food and beverage enterprises after the pandemic: evidence from an emerging economy

Abstract

Purpose This study's main goal is to explore how small and medium-sized enterprises (SMEs) in the food as well as beverage (F&B) area should evolve to survive in a bustled post-pandemic future. Design/methodology/approach Drawing on the knowledge-practice gap in the field of Entrepreneurial Orientation (EO) as well as Business Model Innovation (BMI), this study examines an integrated framework using the F&B sector as an empirical field of research. This study uses an empirical quantitative approach using the main information aggregated from a questionnaire administered during the study. The sample had 467 valid responses (71.08% response rate). This paper uses the Partial-Least Squares Structural Equation Model (PLS-SEM) to examine structural relationships because this technique is usually proposed for models with complex relations. Findings According to the research EO is directly and indirectly, correlated with BMI. The correlation is positive and significant. Simultaneously, corporate social responsibility (CSR) is partially mediated in the stated relation between EO as well as BMI, and CETA where it shows a positive moderation part in EO's influence on CSR. In particular, it elucidates how EO promotes CSR and BMI, alongside moderating part of circular economy principles adoption (CEPA). Practical implications These research findings suggest that SMEs in the F&B sector should transform the way they traditionally manage their businesses by applying circular economic principles into entrepreneurial orientation to promote CSR-based practices and acquire the resources obtained from internal and external stakeholders. Hence, their business can recover from post-pandemic effects and become resilient to future disruptions. Furthermore, this study suggests that adopting circular economy principles provides a key source of knowledge and insights that allows firms to sharpen their entrepreneurial orientation toward incorporating stakeholders and social environmental concerns into business models for sustainability, especially in the uncertain and drastic changing environment. Originality/value This study proposes a novel approach by which BMI is formed and evolved based on circular economy principles-oriented entrepreneurship and the synergies of stakeholders through undertaking corporate social responsibility practices. Drawing from the knowledge-practice gap, this research adds to the existing knowledge about EO as well as BMI with a conceptualized and operationalized empirical framework in a novel context that was not covered in current literature, especially in the context of uncertainties and disruptions experienced during COVID-19 outbreaks. The F&B sector was hit and how it should evolve to recover and build resilience is perceived as an urgent issue.