Factors Affecting Business Model Innovation and the Relationship with Firm Performance

Lee, Juhun (2021) Factors Affecting Business Model Innovation and the Relationship with Firm Performance. Bachelor thesis, Universitas Pelita Harapan.

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Abstract

Amid the digitalization of businesses due to the Fourth Revolution, unfortunately, many companies are having difficulty keeping pace with these changes. In order to overcome this situation, business model innovation is being re-examined, but the amount of research data and theoretical use of business model innovation are still far from enough. This research has been conducted to contribute to further expansion of studies on business model innovation in the future. This research talks about business model innovation including the affecting factors and its relationship with firm performance in IT industry Indonesia. This research is quantitative with a data collection method using questionnaires via google survey. The respondents of the questionnaire were individuals currently working in an IT-related firm as a managerial-level employee. The software used in this research is Smart PLS. This study’s outer model consists of validity and reliability measurements, while the inner model consists of measurements of R-square, T-statistics, and P-value tests. In order to test the relationship constructed in the theoretical framework of the study, structural equation modeling has been used. The result of this study proves the relationship between the variables, Knowledge Absorptive Capacity, Organizational Agility, Top Management Mindfulness, Business Model Innovation and Firm Performance.

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