Digital Technologies as Key Drivers of Business Model Innovation for SME Competitiveness

Abstract

Digital business model innovation (DBMI) is vital in the contemporary digital era. However, there has been a lack of research on DBMI, especially in the context of small and medium-sized enterprises (SMEs). Grounded on upper echelons and dynamic capabilities theories, this study aims to delve into the influence of digital leadership, digital capability, and digital technology on DBMI. By referring to prior literature, theme-based FGD data analysis, and interview findings, the main contribution of present study is to provide insights into how these drivers impact DBMI trajectory. The FGD reveals that digital capability has strong positive integration, while digital leadership and technology have weak positive integration with DBMI. The interview findings highlight the DBMI adopted by four SMEs, their challenges, and digital leadership, digital capability, and digital technology drive DBMI adoption. The findings can facilitate SMEs and policymakers to formulate strategies and policies and make decisions pertaining to DBMI adoption.