Business model innovation and growth of manufacturing SMEs: a social exchange perspective
Journal of Manufacturing Technology Management
ISSN: 1741-038X
Article publication date: 3 November 2020
Issue publication date: 23 February 2021
Abstract
Purpose
This study investigates business model innovation in small- and medium-sized manufacturing enterprises (SMEs) and its impact on firm growth.
Design/methodology/approach
The study was based on analyzing data collected through a questionnaire survey. Structural equation modeling was applied to test the hypotheses.
Findings
Business model innovation has a positive effect on SME growth in the manufacturing sectors. Moreover, growth is also achieved through the indirect effect of business model innovation on customer trust and commitment.
Practical implications
Managers will benefit from understanding how business model innovation can help their companies to overcome resource constraints and achieve sustained growth. When manufacturing SMEs engage in modular or structural changes to their business model, they may find it worthwhile to focus on maintaining a relationship of trust and commitment with their customers.
Originality/value
This study highlights business model innovation as a unique and important, yet underexplored, factor in manufacturing SME growth. The findings also untangle the complex processes of customer relationship management by which business model innovation improves manufacturing competitive advantage for SMEs.
Keywords
Acknowledgements
The authors would like to sincerely thank the anonymous reviewers and the editor for their insightful comments and suggestions. This work was supported by the Natural Science Foundation of Guangdong Province of China (2019A1515110715).
Citation
Chen, J., Liu, L. and Wang, Y. (2021), "Business model innovation and growth of manufacturing SMEs: a social exchange perspective", Journal of Manufacturing Technology Management, Vol. 32 No. 2, pp. 290-312. https://doi.org/10.1108/JMTM-03-2020-0089
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited