Business Model Innovation: Impact of Entrepreneurial Competencies to New Value Proposition

Turulja, Lejla; Smajlović, Selma; Šimičević, Vanja

doi:10.2478/bsrj-2025-0003

Abstract

Background

Rapid changes and dynamic markets significantly impact the way businesses operate. Many companies fail to adapt and innovate their business models, which jeopardises their sustainability. Managers, as key decision-makers, play a pivotal role in the innovation process, whereby their entrepreneurial competencies directly influence various dimensions of business model innovation.

Objectives

The main aim of this study is to examine the impact of entrepreneurial competencies on the new value proposition dimension of business model innovation (BMI), exploring competencies such as opportunity recognition, analytical thinking, innovativeness, tenacity, and passion for work. It investigates how these competencies contribute to developing new offerings and new channels, attracting new customers and markets, and building new customer relations.

Methods/Approach

The study is conducted on a sample of 267 managers of medium and large companies across various industries in Bosnia and Herzegovina. The data were analysed using Structural Equation Modelling (SEM).

Results

The results show that different entrepreneurial competencies have a significant impact on various aspects of a new value proposition.

Conclusions

The study contributes to a deeper understanding of the influence of different entrepreneurial competencies on new value proposition dimensions within BMI. Managers who effectively utilise these competencies can enhance their companies’ value propositions, thereby increasing competitiveness and business success.

References

Ahmad, H. N., Ramayah, T., Wilson, C., & Kummerow, L. (2010). Is entrepreneurial competency and business success dependent upon the business environment?: A study of Malaysian SMEs. International Journal of Entrepreneurial Behaviour & Research, 16(3), 182–203. https://doi.org/10.1108/13552551011042780
Search in Google Scholar Back to article
Anwar, M., Shah, S. Z. A., Khan, S. Z., & Khattak, M. S. (2019). Manager’s personality and business model innovation. International Journal of Innovation Management, 23(7). https://doi.org/10.1142/S1363919619500610
Search in Google Scholar Back to article
Ardichvili, A., Cardozo, R., & Ray, S. (2003). A theory of entrepreneurial opportunity identification and development. Journal of Business Venturing, 18(1), 105–123. https://doi.org/10.1016/S0883-9026(01)00068-4
Search in Google Scholar Back to article
Baron, R. A., & Markman, G. D. (2003). Beyond social capital: the role of entrepreneurs’ social competence in their financial success. Journal of Business Venturing, 18(1), 41–60. https://doi.org/https://doi.org/10.1016/S0883-9026(00)00069-0
Search in Google Scholar Back to article
Bashir, M., Naqshbandi, M. M., & Yousaf, A. (2023). Impact of managerial skills and ties on business model innovation: the role of exploitative and explorative learning. Leadership & Organization Development Journal, 44. https://doi.org/10.1108/LODJ-10-2021-0441
Search in Google Scholar Back to article
Baum, J. R., & Locke, E. A. (2004). The relationship of entrepreneurial traits, skill, and motivation to subsequent venture growth. Journal of Applied Psychology, 89(4), 587–598. https://doi.org/10.1037/0021-9010.89.4.587
Search in Google Scholar Back to article
Bocken, N. M. P., & Geradts, T. H. J. (2020). Barriers and drivers to sustainable business model innovation: Organization design and dynamic capabilities. Long Range Planning, 53(4), 101950. https://doi.org/10.1016/j.lrp.2019.101950
Search in Google Scholar Back to article
Bonazzi, R., Grèzes, V., & Perruchoud, A. (2023). Entre’nous- the entrepreneurs’ challenges to explicit knowledge and foster collaborative open innovation in Book of abstracts of the ENTRENOVA–Enterprise Research Innovation Conference (Vol. 9, Issue 1).
Search in Google Scholar Back to article
Bouncken, R. B., & Fredrich, V. (2016). Business model innovation in alliances: Successful configurations. Journal of Business Research, 69(9), 3584–3590. https://doi.org/10.1016/j.jbusres.2016.01.004
Search in Google Scholar Back to article
Boyatzis, R. E. (1982). The competent manager: A model for effective performance. John Wiley & Sons.
Search in Google Scholar Back to article
Božić, J. (2024). Scaling Up Organic Agricultural Enterprises: An Empirical Study of the Role of Associations of Micro Producers. Business Systems Research Journal: International Journal of the Society for Advancing Innovation and Research in Economy, 15(1), 253–273. https://doi.org/10.2478/bsrj-2024-0012
Search in Google Scholar Back to article
Bucherer, E., Eisert, U., & Gassmann, O. (2012). Towards Systematic Business Model Innovation: Lessons from Product Innovation Management. Creativity and Innovation Management, 21(2), 183–198. https://doi.org/https://doi.org/10.1111/j.1467-8691.2012.00637.x
Search in Google Scholar Back to article
Casadesus-Masanell, R., & Ricart, J. E. (2010). From strategy to business models and onto tactics. Long Range Planning, 43(2–3), 195–215. https://doi.org/10.1016/j.lrp.2010.01.004
Search in Google Scholar Back to article
Casno, K., & Sloka, B. (2023). A Closer Look at the Social Entrepreneurship Ecosystem in Latvia: Opportunities for Building Performance. ENTRENOVA - ENTerprise REsearch InNOVAtion, 9, 203–217. https://doi.org/10.54820/entrenova-2023-0018
Search in Google Scholar Back to article
Chandler, G. N., & Jansen, E. (1992). The Founder’s self-assesed cometence and venture performance. Journal of Business Venturing, 7, 223–236.
Search in Google Scholar Back to article
Chesbrough, H. (2010). Business Model Innovation: Opportunities and Barriers. Long Range Planning, 43(2), 354–363. https://doi.org/https://doi.org/10.1016/j.lrp.2009.07.010
Search in Google Scholar Back to article
Chesbrough, H. (2012). Open innovation: Where we’ve been and where we’re going. Research Technology Management, 55(4), 20–27. https://doi.org/10.5437/08956308X5504085
Search in Google Scholar Back to article
Chinwendu, J., & Eze, A. N. (2021). Managerial Competencies Required of Business Education Graduates for Handling Entrepreneurship Challenges in Anambra State, Nigeria. European Journal of Education Studies, 8(5), 180–196. https://doi.org/10.46827/ejes.v8i5.3723
Search in Google Scholar Back to article
Clauss, T. (2017). Measuring business model innovation: conceptualization, scale development, and proof of performance. R&D Management, 47(3), 385–403. https://doi.org/10.1111/radm.12186
Search in Google Scholar Back to article
Clauss, T. (2023). In Search for the Holy Grail in Management Research: A Review of the Benefits of Business Model Innovation BT - Debating Innovation: Perspectives and Paradoxes of an Idealized Concept (A. Rehn & A. Örtenblad (Eds.); pp. 103–121). Springer International Publishing. https://doi.org/10.1007/978-3-031-16666-2_6
Search in Google Scholar Back to article
Damanpour, F. (1992). Organizational Size and Innovation. Organization Studies, 13(3), 375–402. https://doi.org/10.1177/017084069201300304
Search in Google Scholar Back to article
De Clercq, D., Honig, B., & Martin, B. (2013). The roles of learning orientation and passion for work in the formation of entrepreneurial intention. International Small Business Journal, 31(6), 652–676. https://doi.org/10.1177/0266242611432360
Search in Google Scholar Back to article
de Freitas Michelin, C., Minello, I., Siluk, J., Gerhardt, V., Savian, F., & Garlet, T. (2023). Analysis of Entrepreneurial Behaviour in Incubated Technology-Based Companies. Business Systems Research: International Journal of the Society for Advancing Innovation and Research in Economy, 14(1), 54–71. https://doi.org/10.2478/bsrj-2023-0003
Search in Google Scholar Back to article
Dewald, J., & Bowen, F. (2010). Storm clouds and silver linings: Responding to disruptive innovations through cognitive resilience. Entrepreneurship: Theory and Practice, 34(1), 197–218. https://doi.org/10.1111/j.1540-6520.2009.00312.x
Search in Google Scholar Back to article
Dinibutun, S. R. (2024). The impact of entrepreneurial passion on business model innovation on Turkish SMEs. Cogent Business & Management, 11(1), 2291864. https://doi.org/10.1080/23311975.2023.2291864
Search in Google Scholar Back to article
Eriksson, T., Halla, H., Heikkilä, M., & Kalliomäki, H. (2019). Bridging entrepreneurial competencies and business model innovation: Insights on business renewal in the small horticulture businesses in Finland. Agricultural and Food Science, 28(3), 112–125. https://doi.org/10.23986/afsci.79500
Search in Google Scholar Back to article
Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18, 39–50. https://doi.org/10.1017/CBO9781107415324.004
Search in Google Scholar Back to article
Foss, N. J., & Saebi, T. (2015). Business Model Innovation: The Organizational Dimension. Oxford University Press. https://books.google.ba/books?id=T-1xBgAAQBAJ
Search in Google Scholar Back to article
Futterer, F., Schmidt, J., & Heidenreich, S. (2018). Effectuation or causation as the key to corporate venture success? Investigating effects of entrepreneurial behaviors on business model innovation and venture performance. Long Range Planning, 51(1), 64–81. https://doi.org/10.1016/j.lrp.2017.06.008
Search in Google Scholar Back to article
George, G., & Bock, A. J. (2011). The Business Model in Practice and Its Implications for Entrepreneurship Research. Entrepreneurship: Theory & Practice, 35(1), 83–111. https://doi.org/10.1111/j.1540-6520.2010.00424.
Search in Google Scholar Back to article
Giesen, E., Riddleberger, E., Christner, R., & Bell, R. (2010). When and how to innovate your business model. Strategy & Leadership, 38(4), 17–26. https://doi.org/10.1108/10878571011059700
Search in Google Scholar Back to article
Guo, H., Tang, J., Su, Z., & Katz, J. A. (2017). Opportunity recognition and SME performance: the mediating effect of business model innovation. R&D Management, 47(3), 431–442. https://doi.org/10.1111/radm.12219
Search in Google Scholar Back to article
Guo, H., Zhao, J., & Tang, J. (2013). The role of top managers’ human and social capital in business model innovation. Chinese Management Studies, 7(3), 447–469. https://doi.org/10.1108/CMS-03-2013-0050
Search in Google Scholar Back to article
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2018). Multivariate Data Analysis. https://doi.org/10.1002/9781119409137.ch4
Search in Google Scholar Back to article
Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE Publications.
Search in Google Scholar Back to article
Leko-Šimić, M., Horvat, J., & Forjan, J. (2007). Entrepreneurial characteristics of croatian exporters. In Z. Reić & M. Fredotović (Eds.), Seventh International Coneference on “Enterprise in Transition” (pp. 779–787). Faculty of Economics, University of Split. https://conference.efst.hr/proceedings/SeventhInternationalConferenceEnterpriseInTransitionConferenceProceedings-bookmarked.pdf
Search in Google Scholar Back to article
Limaj, E., & Bernroider, E. (2019). The roles of absorptive capacity and cultural balance for exploratory and exploitative innovation in SMEs. Journal of Business Research, 94, 137–153. https://doi.org/10.1016/j.jbusres.2017.10.052
Search in Google Scholar Back to article
Malhotra, N. K. (2015). Essentials of marketing research: A hands-on orientation (1st edition). Pearson Education.
Search in Google Scholar Back to article
Man, T. W. Y., & Lau, T. (2005). The context of entrepreneurship in Hong Kong: An investigation through the patterns of entrepreneurial competencies in contrasting industrial environments. Journal of Small Business and Enterprise Development, 12(4), 464–481. https://doi.org/10.1108/14626000510628162
Search in Google Scholar Back to article
Man, T. W. Y., Lau, T., & Chan, K. F. (2002). The competitiveness of small and medium enterprises: A conceptualization with focus on entrepreneurial competencies. Journal of Business Venturing, 17(2), 123–142. https://doi.org/10.1016/S0883-9026(00)00058-6
Search in Google Scholar Back to article
Man, T. W. Y., Lau, T., & Snape, E. (2008). Entrepreneurial Competencies and the Performance of Small and Medium Enterprises: An Investigation through a Framework of Competitiveness. Journal of Small Business and Entrepreneurship, 21(3), 257–276. https://doi.org/10.1080/08276331.2008.10593424
Search in Google Scholar Back to article
Mitchelmore, S., & Rowley, J. (2010). Entrepreneurial competencies: A literature review and development agenda. International Journal of Entrepreneurial Behaviour & Research, 16(2), 92–111. https://doi.org/10.1108/13552551011026995
Search in Google Scholar Back to article
Mol, M. J., Hamel, G., & Birkinshaw, J. (2009). Management Innovation in the UK. www.dius.gov.uk/research
Search in Google Scholar Back to article
Morris, M., Schindehutte, M., & Allen, J. (2005). The entrepreneur’s business model: Toward a unified perspective. Journal of Business Research, 58(6), 726–735. https://doi.org/10.1016/j.jbusres.2003.11.001
Search in Google Scholar Back to article
Morris, M., Webb, W. J., Fu, J., & Singhal, S. (2013). A competency-based perspective on entrepreneurship education: Conceptual and empirical insights. Journal of Small Business Management, 51(3), 352–369. https://doi.org/10.1111/jsbm.12023
Search in Google Scholar Back to article
Nguyen, T. T., & Phan, H. T. T. (2024). Entrepreneurship environments and entrepreneurial intention-the role of self efficacy and role model. International Journal of Engineering Business Management, 16, 1–11. https://doi.org/10.1177/18479790241275925
Search in Google Scholar Back to article
Osiyevskyy, O., & Dewald, J. (2015). Explorative versus exploitative business model change: The cognitive antecedents of firm-level responses to disruptive innovation. Strategic Entrepreneurship Journal, 9(1), 58–78. https://doi.org/10.1002/sej.1192
Search in Google Scholar Back to article
Pejic Bach, M., Aleksic, A., & Merkac-Skok, M. (2018). Examining determinants of entrepreneurial intentions in Slovenia: applying the theory of planned behaviour and an innovative cognitive style. Economic Research-Ekonomska Istraživanja, 31(1), 1453–1471. https://doi.org/10.1080/1331677X.2018.1478321
Search in Google Scholar Back to article
Pejic Bach, M., Ivec, A., & Jaković, B. (2024). Mapping Start-up Research Trends: A Literature Review from 2004 to 2023. 47th MIPRO ICT and Electronics Convention (MIPRO), 1065–1070. https://doi.org/10.1109/MIPRO60963.2024.10569799
Search in Google Scholar Back to article
Rahman, S. A., Amran, A., Ahmad, N. H., & Taghizadeh, S. K. (2015). Supporting entrepreneurial business success at the base of pyramid through entrepreneurial competencies. Management Decision, 53(6), 1203–1223. https://doi.org/10.1108/MD-08-2014-0531
Search in Google Scholar Back to article
Rasmussen, E., Mosey, S., & Wright, M. (2011). The Evolution of Entrepreneurial Competencies: A Longitudinal Study of University Spin-Off Venture Emergence. Journal of Management Studies, 48(6), 1314–1345. https://doi.org/10.1111/j.1467-6486.2010.00995.x
Search in Google Scholar Back to article
Rauch, A., & Frese, M. (2007). Let’s put the person back into entrepreneurship research: A meta-analysis on the relationship between business owners’ personality traits, business creation, and success. European Journal of Work and Organizational Psychology, 16(4), 353–385. https://doi.org/10.1080/13594320701595438
Search in Google Scholar Back to article
RezaeiZadeh, M., Hogan, M., O’Reilly, J., Cunningham, J., & Murphy, E. (2017). Core entrepreneurial competencies and their interdependencies: insights from a study of Irish and Iranian entrepreneurs, university students and academics. International Entrepreneurship and Management Journal, 13(1), 35–73. https://doi.org/10.1007/s11365-016-0390-y
Search in Google Scholar Back to article
Schmitt-Rodermund, E. (2004). Pathways to successful entrepreneurship: Parenting, personality, early entrepreneurial competence, and interests. Journal of Vocational Behavior, 65(3), 498–518. https://doi.org/10.1016/j.jvb.2003.10.007
Search in Google Scholar Back to article
Schneider, S., & Spieth, P. (2013). Business model innovation: Towards an integrated future research agenda. International Journal of Innovation Management, 17(01), 1–34. https://doi.org/10.1142/S136391961340001X
Search in Google Scholar Back to article
Seiferlein, B., Gernsheimer, O., & Kanbach, D. (2022). Fostering entrepreneurial competencies for business model innovation - the case of Audi Denkwerkstatt. International Journal of Automotive Technology and Management, 22, 401. https://doi.org/10.1504/IJATM.2022.126821
Search in Google Scholar Back to article
Shane, S. (2000). Prior Knowledge and the Discovery of Entrepreneurial Opportunities. Organization Science, 11(4), 448–469. https://www.jstor.org/stable/2640414
Search in Google Scholar Back to article
Shane, S., & Venkataraman, S. (2000). The Promise of Entrepreneurship as a Field of Research. The Academy of Management Review, 25(1), 217–226. http://www.jstor.org/stable/259271
Search in Google Scholar Back to article
Shook, C. L., Ketchen Jr., D. J., Hult, G. T. M., & Kacmar, K. M. (2004). An assessment of the use of structural equation modeling in strategic management research. Strategic Management Journal, 25(4), 397–404. https://doi.org/https://doi.org/10.1002/smj.385
Search in Google Scholar Back to article
Smith, B., & Morse, E. (2005). Entrepreneurial competencies: Literature review and best practices. Small Business Policy Branch, Industry Canada, Otawa.
Search in Google Scholar Back to article
Smith, W. K., Binns, A., & Tushman, M. L. (2010). Complex business models: Managing strategic paradoxes simultaneously. Long Range Planning, 43(2–3), 448–461. https://doi.org/10.1016/j.lrp.2009.12.003
Search in Google Scholar Back to article
Snihur, Y., & Zott, C. (2020). The genesis and metamorphosis of novelty imprints: How business model innovation emerges in young ventures. Academy of Management Journal, 63(2), 554–583. https://doi.org/10.5465/amj.2017.0706
Search in Google Scholar Back to article
Spieth, P., Breitenmoser, P., & Röth, T. (2023). Business model innovation: Integrative review, framework, and agenda for future innovation management research. Journal of Product Innovation Management, 42(1), 166–193. https://doi.org/https://doi.org/10.1111/jpim.12704
Search in Google Scholar Back to article
Spieth, P., Schneckenberg, D., & Ricart, J. E. (2014). Business model innovation–state of the art and future challenges for the field. R&D Management, 44(3), 237–247. https://doi.org/10.1111/radm.12071
Search in Google Scholar Back to article
Spieth, P., & Schneider, S. (2016). Business model innovativeness: designing a formative measure for business model innovation. Journal of Business Economics, 86(6), 671–696. https://doi.org/10.1007/s11573-015-0794-0
Search in Google Scholar Back to article
Wagner, E. R., & Hansen, E. N. (2005). Innovation in large versus small companies: insights from the US wood products industry. Management Decision, 43(6), 837–850. https://doi.org/10.1108/00251740510603592
Search in Google Scholar Back to article
Wang, D., Guo, H., & Liu, L. (2017). One goal, two paths: How managerial ties impact business model innovation in a transition economy. Journal of Organizational Change Management, 30(5), 779–796. https://doi.org/10.1108/JOCM-09-2016-0178
Search in Google Scholar Back to article
White, R. W. (1959). Motivation reconsidered: the concept of competence. Psychological Review, 66(5), 297–333. https://doi.org/10.1037/h0040934
Search in Google Scholar Back to article
Wirtz, B., Müller, W., & Langer, P. (2022). Quo vadis business model innovation? BMI development, and research implications. International Journal of Innovation Management, 26(1). https://doi.org/10.1142/S1363919622500104
Search in Google Scholar Back to article
Woodruffe, C. (1993). What is meant by a competency? Leadership & Organization Development Journal, 14(1), 29–36. https://doi.org/10.1108/eb053651
Search in Google Scholar Back to article
Zott, C., & Amit, R. (2010). Business Model Design: An Activity System Perspective. Long Range Planning, 43(2), 216–226. https://doi.org/https://doi.org/10.1016/j.lrp.2009.07.004
Search in Google Scholar Back to article
Zott, C., Amit, R., & Massa, L. (2011). The business model: Recent developments and future research. Journal of Management, 37(4), 1019–1042. https://doi.org/10.1177/0149206311406265
Search in Google Scholar Back to article
Zou, S. (2022). From entrepreneurial passion to business model innovation: The role of entrepreneurial learning and curiosity. Frontiers in Psychology, 13, 1–15. https://doi.org/10.3389/fpsyg.2022.1028906
Search in Google Scholar Back to article