Building new business models in MSMEs: digital capabilities, global value chains integration and the moderating role of entrepreneurial failure
Journal of Small Business and Enterprise Development
ISSN: 1462-6004
Article publication date: 2 April 2024
Abstract
Purpose
The research aims to explore the relationships between the digital capabilities of micro, small and medium enterprises (MSMEs), their participation in global value chains and their adoption of innovative business models. Additionally, the study investigates how the prior experiences of entrepreneurial failure may influence or moderate these relationships.
Design/methodology/approach
To address these research objectives, the study draws upon data obtained from the Flash Eurobarometer 486 survey, a comprehensive dataset that explores the challenges faced by 13,197 European MSMEs as they navigate the complexities of growth, the integration of sustainable business models and the incorporation of digital technologies. To test the proposed hypotheses, the research employs multivariate logistic regression analysis.
Findings
Digital capabilities are found to be positively associated with business model innovation, while integration into global value chains is linked to a higher likelihood of implementing new business models. Interestingly, entrepreneurial failure did not significantly influence the relationship between digital capabilities and the adoption of new business models. In contrast, entrepreneurial failure significantly moderated the impact of global value chain inclusion on business model innovation, particularly in MSMEs with a history of failure.
Originality/value
This article provides practical guidance to entrepreneurs and companies interested in enhancing their digital strategies and engagement in global value chains, considering the entrepreneurs' business histories.
Keywords
Acknowledgements
Pedro Mota Veiga and Sandra Marnoto would like to thank to NECE – Research Centre for Business Sciences – funded by the Multiannual Funding Programme of R&D Centres of FCT – Fundação para a Ciência e a Tecnologia – under the project “UIDB/04630/2020”.
Citation
Veiga, P.M., Marnoto, S., Guerra-Mota, M. and Rexhepi, G. (2024), "Building new business models in MSMEs: digital capabilities, global value chains integration and the moderating role of entrepreneurial failure", Journal of Small Business and Enterprise Development, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JSBED-10-2023-0501
Publisher
:Emerald Publishing Limited
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