Drivers of business model innovation in micro and small enterprises: evidence from Egypt as an emerging economy

Adel HM, Mahrous AA, Hammad R (2020) Entrepreneurial marketing strategy, institutional environment, and business performance of SMEs in Egypt. J Entrep Emerg Econ 12(5):727–746. https://doi.org/10.1108/JEEE-11-2019-0171 Adomako S, Danso A (2014) Regulatory environment, environmental dynamism, political ties, and performance: Study of entrepreneurial firms in a developing economy. J Small Bus Enterp Dev 21(2):212–230. https://doi.org/10.1108/JSBED-01-2014-0004 Afshar Jahanshahi A, Brem A (2020) Entrepreneurs in post-sanctions Iran: Innovation or imitation under conditions of perceived environmental uncertainty? Asia Pacific J Manag 37(2):531–551. https://doi.org/10.1007/s10490-018-9618-4 Al-Omoush KS, Ribeiro-Navarrete S, Lassala C, Skare M (2022) Networking and knowledge creation: Social capital and collaborative innovation in responding to the COVID-19 crisis. J Innov Knowl 7(2):100181. https://doi.org/10.1016/j.jik.2022.100181 Amore MD, Bennedsen M (2013) The value of local political connections in a low-corruption environment. J Financ Econ 110(2):387–402. https://doi.org/10.1016/j.jfineco.2013.06.002 Anderson A, Ronteau S (2017) Towards an entrepreneurial theory of practice; emerging ideas for emerging economies. J Entrep Emerg Econ 9(2):110–120. https://doi.org/10.1108/JEEE-12-2016-0054 Anwar M (2018) Business model innovation and SMEs performance—does competitive advantage mediate? Int J Innov Manag 22(07):1850057. https://doi.org/10.1142/S1363919618500573 Anwar M, Shah SZ (2021) Entrepreneurial orientation and generic competitive strategies for emerging SMEs: financial and nonfinancial performance perspective. J Public Affairs 21(1):e2125. https://doi.org/10.1002/pa.2125 Arend RJ (2022) How uncertainty levels and types matter, to likely entrepreneurs and others. J Business Venturing Insights 18:e00327. https://doi.org/10.1016/j.jbvi.2022.e00327 Astuty W, Pasaribu F, Rahayu S, Habibie A (2021) The influence of environmental uncertainty, organizational structure and distribution network competence on the quality of supply chain management information systems. Uncertain Supp Chain Manag 9(1):116–124. https://doi.org/10.5267/j.uscm.2020.11.003 Bamfo BA, Kraa JJ (2019) Market orientation and performance of small and medium enterprises in Ghana: the mediating role of innovation. Cogent Business Manag 6(1):1605703. https://doi.org/10.1080/23311975.2019.1605703 Bastian E, Muchlish M (2012) Perceived environment uncertainty, business strategy, performance measurement systems and organizational performance. Procedia Soc Behav Sci 65:787–792. https://doi.org/10.1016/j.sbspro.2012.11.200 Bayraktar CA, Hancerliogullari G, Cetinguc B, Calisir F (2017) Competitive strategies, innovation, and firm performance: An empirical study in a developing economy environment. Technol Anal Strategic Manag 29(1):38–52. https://doi.org/10.1080/09537325.2016.1194973 Boso N, Story VM, Cadogan JW (2013) Entrepreneurial orientation, market orientation, network ties, and performance: Study of entrepreneurial firms in a developing economy. J Bus Ventur 28(6):708–727. https://doi.org/10.1016/j.jbusvent.2013.04.001 Brozovic D (2018) Strategic flexibility: A review of the literature. Int J Manag Rev 20(1):3–31. https://doi.org/10.1111/ijmr.12111 Bruton GD, Filatotchev I, Si S, Wright M (2013) Entrepreneurship and strategy in emerging economies. Strateg Entrep J 7(3):169–180. https://doi.org/10.1002/sej.1159 Bucktowar R, Kocak A, Padachi K (2015) Entrepreneurial orientation, market orientation and networking: impact on innovation and firm performance. J Dev Entrep 20(04):1550024. https://doi.org/10.1142/S1084946715500247 Buliga O, Scheiner CW, Voigt KI (2016) Business model innovation and organizational resilience: towards an integrated conceptual framework. J Bus Econ 86(6):647–670. https://doi.org/10.1007/s11573-015-0796-y CAPMAS (2021) https://www.data4sdgs.org/partner/capmas-central-agency-public-mobilization-and-statistics (accessed on 5th of July, 2021). Chen M, Liu H, Wei S, Gu J (2018) Top managers’ managerial ties, supply chain integration, and firm performance in China: a social capital perspective. Ind Mark Manage 74:205–214. https://doi.org/10.1016/j.indmarman.2018.04.013 Chikerema L, Makanyeza C (2021) Enhancing the performance of micro-enterprises through market orientation: evidence from Harare. Zimbabwe Global Business Organiz Excel 40(3):6–19. https://doi.org/10.1002/joe.22075 Ciampi F, Demi S, Magrini A, Marzi G, Papa A (2021) Exploring the impact of big data analytics capabilities on business model innovation: The mediating role of entrepreneurial orientation. J Bus Res 123:1–13. https://doi.org/10.1016/j.jbusres.2020.09.023 Clauss T (2017) Measuring business model innovation: conceptualization, scale development, and proof of performance. RD Manag 47:385–403. https://doi.org/10.1111/radm.12186 Correia RJ, Dias JG, Teixeira MS (2020) Dynamic capabilities and competitive advantages as mediator variables between market orientation and business performance. J Strateg Manag 14(2):187–206. https://doi.org/10.1108/JSMA-12-2019-0223 Dai B, Liang W (2022) The impact of big data technical skills on novel business model innovation based on the role of resource integration and environmental uncertainty. Sustainability 14(5):2670. https://doi.org/10.3390/su14052670 Didonet S, Simmons G, Díaz-Villavicencio G, Palmer M (2012) (2012) The relationship between small business market orientation and environmental uncertainty. Mark Intell Plan 30(7):757–779. https://doi.org/10.1108/02634501211273841 Dijkstra TK, Henseler J (2015) Consistent and asymptotically normal PLS estimators for linear structural equations. Comput Stat Data Anal 81:10–23. https://doi.org/10.1016/j.csda.2014.07.008 Dobrovic J, Lambovska M, Gallo P, Timkova V (2018) Non-financial indicators and their importance in small and medium-sized enterprises. J Compet 10(2):41. https://doi.org/10.7441/joc.2018.02.03 Dong MC, Li CB, Tse DK (2013) Do business and political ties differ in cultivating marketing channels for foreign and local firms in China? J Int Mark 21(1):39–56. https://doi.org/10.1509/jim.12.0088 D’souza C, Nanere M, Marimuthu M, Arwani M, Nguyen N (2021) Market orientation, performance and the mediating role of innovation in Indonesian SMEs. Asia Pacific J Market Logist. https://doi.org/10.1108/APJML-08-2021-0624 Eriksson T, Heikkilä M, Nummela N (2022) Business model innovation for resilient international growth. Small Enterp Res. https://doi.org/10.1080/13215906.2022.2092890 Ezzi F, Jarboui A (2016) Does innovation strategy affect financial, social and environmental performance? J Econ Finance Admin Sci 21(40):14–24. https://doi.org/10.1016/j.jefas.2016.03.001 Farrukh M, Raza A, Waheed A (2021) Your network is your net worth: political ties and innovation performance. Eur J Innov Manag. https://doi.org/10.1108/EJIM-04-2021-0174 Foss NJ, Saebi T (2017) Fifteen years of research on business model innovation: How far have we come, and where should we go? J Manag 43(1):200–227. https://doi.org/10.1177/0149206316675927 Gilmore A, Carson D (1999) Entrepreneurial marketing by networking. New England J Entrep 2(2):31–36. https://doi.org/10.1108/NEJE-02-02-1999-B004 Gölgeci I, Kuivalainen O (2020) Does social capital matter for supply chain resilience? The role of absorptive capacity and marketing-supply chain management alignment. Ind Mark Manage 84:63–74. https://doi.org/10.1016/j.indmarman.2019.05.006 Gunawan T, Jacob J, Duysters G (2016) Network ties and entrepreneurial orientation: Innovative performance of SMEs in a developing country. Int Entrep Manag J 12(2):575–599. https://doi.org/10.1007/s11365-014-0355-y Hair JF, Risher JJ, Sarstedt M, Ringle CM (2019) When to use and how to report the results of PLS-SEM. Eur Bus Rev 31(1):2–24. https://doi.org/10.1108/EBR-11-2018-0203 Heider A, Gerken M, van Dinther N, Hülsbeck M (2021) Business model innovation through dynamic capabilities in small and medium enterprises–Evidence from the German Mittelstand. J Bus Res 130:635–645. https://doi.org/10.1016/j.jbusres.2020.04.051 Heikkilä M, Bouwman H, Heikkilä J (2017) From strategic goals to business model innovation paths: an exploratory study. J Small Bus Enterp Dev 25(1):107–128. https://doi.org/10.1108/JSBED-03-2017-0097 Henseler J, Hubona G, Ray PA (2016) Using PLS path modeling in new technology research: updated guidelines. Ind Manag Data Syst 116(1):2–20. https://doi.org/10.1108/IMDS-09-2015-0382 Hernández-Linares R, Kellermanns FW, López-Fernández MC (2021) Dynamic capabilities and SME performance: The moderating effect of market orientation. J Small Bus Manage 59(1):162–195. https://doi.org/10.1111/jsbm.12474 Ismail TH, El-Deeb M, Halim YT (2022) Do related party transactions affect the relationship between political connections and firm value? Evidence Egypt Future Business J 8(1):1–12. https://doi.org/10.1186/s43093-022-00123-x Jaworski BJ, Kohli AK (1993) Market orientation: antecedents and consequences. J Mark 57(3):53–70. https://doi.org/10.1177/002224299305700304 Julian CC, Mohamad O, Ahmed ZU, Sefnedi S (2014) The market orientation–Performance relationship: The empirical link in export ventures. Thunderbird Int Business Rev 56(1):97–110. https://doi.org/10.1002/tie.21598 Kafetzopoulos D, Psomas E, Skalkos D (2020) Innovation dimensions and business performance under environmental uncertainty. Eur J Innov Manag 23(5):856–876. https://doi.org/10.1108/EJIM-07-2019-0197 Kasim A, Ekinci Y, Altınay L, Hussain K (2018) Impact of market orientation, organizational learning and market conditions on small and medium-size hospitality enterprises. J Hosp Market Manag 27:855–875. https://doi.org/10.1080/19368623.2018.1438955 Khalil A, Abdelli MEA, Mogaji E (2022) Do digital technologies influence the relationship between the COVID-19 crisis and SMEs’ resilience in developing countries? J Open Innov Technol Market Complex 8(2):100. https://doi.org/10.3390/joitmc8020100 Kolbe D, Frasquet M, Calderon H (2022) The role of market orientation and innovation capability in export performance of small-and medium-sized enterprises: a Latin American perspective. Multinatl Bus Rev 30(2):289–312. https://doi.org/10.1108/MBR-10-2020-0202 Laaksonen O, Peltoniemi M (2018) The essence of dynamic capabilities and their measurement. Int J Manag Rev 20(2):184–205. https://doi.org/10.1111/ijmr.12122 Latifi MA, Nikou S, Bouwman H (2021) Business model innovation and firm performance: Exploring causal mechanisms in SMEs. Technovation 107:102274. https://doi.org/10.1016/j.technovation.2021.102274 Lin Y, Wu LY (2014) Exploring the role of dynamic capabilities in firm performance under the resource-based view framework. J Bus Res 67(3):407–413. https://doi.org/10.1016/j.jbusres.2012.12.019 Liu FH, Huang TL (2018) The influence of collaborative competence and service innovation on manufacturers’ competitive advantage. J Business Indust Market 33(4):466–477. https://doi.org/10.1108/JBIM-12-2016-0294 Ma Y, Wei H, Hu C, Jin C (2021) Research on the innovation path of business models based on the market orientation. Complexity. https://doi.org/10.1155/2021/9939004 Miller K, McAdam M, Spieth P, Brady M (2021) Business models big and small: review of conceptualizations and constructs and future directions for SME business model research. J Bus Res 131:619–626. https://doi.org/10.1016/j.jbusres.2020.12.036 Miroshnychenko I, Strobl A, Matzler K, De Massis A (2021) Absorptive capacity, strategic flexibility, and business model innovation: Empirical evidence from Italian SMEs. J Bus Res 130:670–682. https://doi.org/10.1016/j.jbusres.2020.02.015 Najaf R, Najaf K (2021) Political ties and corporate performance: why efficiency matters? J Business Socio-econ Develop 1(2):182–196. https://doi.org/10.1108/JBSED-03-2021-0023 Naqshbandi MM (2016) Managerial ties and open innovation: examining the role of absorptive capacity. Manag Decis 54(9):2256–2276. https://doi.org/10.1108/MD-03-2016-0161 Naqshbandi MM, Kaur S (2014) Do managerial ties support or stifle open innovation? Ind Manag Data Syst 114(4):652–675. https://doi.org/10.1108/IMDS-10-2013-0407 Narver JC, Slater SF, MacLachlan DL (2004) Responsive and proactive market orientation and new-product success. J Prod Innov Manag 21(5):334–347. https://doi.org/10.1111/j.0737-6782.2004.00086.x Newman A, Prajogo D, Atherton A (2016) The influence of market orientation on innovation strategies. J Serv Theory Pract 26(1):72–90. https://doi.org/10.1108/JSTP-02-2015-0044 Nitzl C, Roldan JL, Cepeda G (2016) Mediation analysis in partial least squares path modeling: Helping researchers discuss more sophisticated models. Ind Manag Data Syst 116(9):1849–1864. https://doi.org/10.1108/IMDS-07-2015-0302 O’Donnell A (2004) The nature of networking in small firms. J Cetacean Res Manag 7(3):206–217. https://doi.org/10.1108/13522750410540218 Ozanne LK, Chowdhury M, Prayag G, Mollenkopf DA (2022) SMEs navigating COVID-19: the influence of social capital and dynamic capabilities on organizational resilience. Ind Mark Manage 104:116–135. https://doi.org/10.1016/j.indmarman.2022.04.009 Panno A (2019) Performance measurement and management in small companies of the service sector; evidence from a sample of Italian hotels. Meas Bus Excell 24(2):133–160. https://doi.org/10.1108/MBE-01-2018-0004 Pucihar A, Lenart G, Kljajić Borštnar M, Vidmar D, Marolt M (2019) Drivers and outcomes of business model innovation—Micro, small and medium-sized enterprises perspective. Sustainability 11(2):344. https://doi.org/10.3390/su11020344 Rajwani T, Liedong TA (2015) Political activity and firm performance within nonmarket research: A review and international comparative assessment. J World Bus 50(2):273–283. https://doi.org/10.1016/j.jwb.2014.10.004 Randhawa K, Wilden R, Gudergan S (2021) How to innovate toward an ambidextrous business model? The role of dynamic capabilities and market orientation. J Bus Res 130:618–634. https://doi.org/10.1016/j.jbusres.2020.05.046 Salvato C, Vassolo R (2018) The sources of dynamism in dynamic capabilities. Strateg Manag J 39(6):1728–1752. https://doi.org/10.1002/smj.2703 Sami P, Rahnavard F, Alavi Tabar A (2019) The effect of political and business ties on firm performance. Manag Res Rev 42(7):778–796. https://doi.org/10.1108/mrr-12-2017-0439 Sarwar Z, Khan MA, Yang Z, Khan A, Haseeb M, Sarwar A (2021) An investigation of entrepreneurial SMEs’ network capability and social capital to accomplish innovativeness: a dynamic capability perspective. SAGE Open 11(3):21582440211036090. https://doi.org/10.1177/215824402110360 Schilke O (2014) On the contingent value of dynamic capabilities for competitive advantage: The nonlinear moderating effect of environmental dynamism. Strateg Manag J 35(2):179–203. https://doi.org/10.1002/smj.2099 Sheng S, Zhou KZ, Li JJ (2011) The effects of business and political ties on firm performance: evidence from China. J Mark 75(1):1–15. https://doi.org/10.1509/jm.75.1.1 Shirodkar V, Mohr AT (2015) Explaining foreign firms’ approaches to corporate political activity in emerging economies: the effects of resource criticality, product diversification, inter-subsidiary integration, and business ties. Int Bus Rev 24(4):567–579. https://doi.org/10.1016/j.ibusrev.2014.10.014 Teece DJ (2018) Business models and dynamic capabilities. Long Range Plan 51(1):40–49. https://doi.org/10.1016/j.lrp.2017.06.007 Thongsri N, Chang AKH (2019) Interactions among factors influencing product innovation and innovation behaviour: Market orientation, managerial ties, and government support. Sustainability 11(10):2793. https://doi.org/10.3390/su11102793 Tian H, Iqbal S, Anwar F, Akhtar S, Khan MAS, Wang W (2021) Network embeddedness and innovation performance: a mediation moderation analysis using PLS-SEM. Bus Process Manag J 27(5):1590–1609. https://doi.org/10.1108/BPMJ-08-2020-0377 Tutar H, Nart S, Bingöl D (2015) The effects of strategic orientations on innovation capabilities and market performance: The case of ASEM. Procedia Soc Behav Sci 207:709–719. https://doi.org/10.1016/j.sbspro.2015.10.144 Vij S, Bedi HS (2016) Are subjective business performance measures justified? Int J Product Perform Manag 65(5):603–621. https://doi.org/10.1108/IJPPM-12-2014-0196 Wang CL, Chung HF (2013) The moderating role of managerial ties in market orientation and innovation: An Asian perspective. J Bus Res 66(12):2431–2437. https://doi.org/10.1016/j.jbusres.2013.05.031 Wang Y, Zeng D, Di Benedetto CA, Song M (2013) Environmental determinants of responsive and proactive market orientations. J Business Ind Market 28(7):565–576. https://doi.org/10.1108/JBIM-10-2011-0156 Wang D, Guo H, Liu L (2017) One goal, two paths: How managerial ties impact business model innovation in a transition economy. J Organ Chang Manag 30(1):779–796. https://doi.org/10.1108/JOCM-09-2016-0178 Wei Z, Zhao J, Zhang C (2014) Organizational ambidexterity, market orientation, and firm performance. J Eng Tech Manage 33:134–153. https://doi.org/10.1016/j.jengtecman.2014.06.001 Wilden R, Gudergan S, Lings I (2019) The interplay and growth implications of dynamic capabilities and market orientation. Ind Mark Manage 83:21–30. https://doi.org/10.1016/j.indmarman.2018.11.001 Yan H, He X, Cheng B (2017) Managerial ties, market orientation and export performance. Manag Organ Rev 13:611–638. https://doi.org/10.1017/mor.2016.39 Yang D, Wei Z, Shi H, Zhao J (2020) Market orientation, strategic flexibility and business model innovation. J Business Ind Market 35(4):771–784. https://doi.org/10.1108/JBIM-12-2018-0372 Zaazou ZA, Abdou DS (2021) Egyptian small and medium sized enterprises’ battle against COVID-19 pandemic: March–July 2020. J Human Appl Soc Sci 4(2):94–119. https://doi.org/10.1108/JHASS-09-2020-0161 Zhang D, Linderman K, Schroeder RG (2012) The moderating role of contextual factors on quality management practices. J Oper Manag 30(1–2):12–23. https://doi.org/10.1016/j.jom.2011.05.001 Zhang M, Qi Y, Wang Z, Zhao X, Pawar KS (2019) Effects of business and political ties on product innovation performance: Evidence from China and India. Technovation 80–81:30–39. https://doi.org/10.1016/j.technovation.2018.12.002 Zheng W, Singh K, Mitchell W (2015) Buffering and enabling: The impact of interlocking political ties on firm survival and sales growth. Strateg Manag J 36(11):1615–1636. https://doi.org/10.1002/smj.2301 Zhu H, Chung CN (2014) Portfolios of political ties and business group strategy in emerging economies: Evidence from Taiwan. Adm Sci Q 59(4):599–638. https://doi.org/10.1177/0001839214545277 Zott C, Amit R, Massa L (2011) The business model: recent developments and future research. J Manag 37(4):1019–1042. https://doi.org/10.1177/0149206311406265