TITLE:
An Empirical Investigation into Impact of Business Model on Performance for SMEs in Nigeria
AUTHORS:
Fatima Ndayako
KEYWORDS:
Business Model, Performance, Growth, Small Medium Enterprises, Growth Sales, Abuja, Innovation, Efficiency Centered Business Model Design and Novelty Centered Business Model Design
JOURNAL NAME:
Open Journal of Business and Management,
Vol.9 No.6,
November
26,
2021
ABSTRACT: Understanding
the concept of business model is a very important factor for a firm’s
performance. This
study examines the relationship between business model and performance of SMEs
in Nigeria. In spite of increased interest of citizens going into small
business, it has indicated that most of businesses end up with poor performance which is as a result of varied attitudes
towards business model. Business model was conceptualized using efficiency centered
business model design and novelty centered business model design, while performance for the
dependent variable was conceptualized using sales growth, return on sales and total factor productivity. With the use of
questionnaire survey, business owners of small and medium enterprises operating
in Abuja Nigeria were administrated. The aim of this research is to find out to
what extent and how SMEs use frameworks for creating and innovating their
business models and what the effectiveness of this process is. The relevant
issues discussed are, how do SMEs make use of business models and who are
involved in the business model process in improving performance. This paper
aims to give the state of the art of the business model innovation researches
on SMEs. Overall, this article makes three contributions: 1) to enrich the
current research on the topic of business model on small medium enterprises, 2)
to analyze the researches on the field of the information on the
methodology used and the unit analysis of the researches, and 3) to provide
future research directions of the business model research, especially in the context
of the small medium enterprises.