A Dissertation Submitted in Partial fulfillment of the Requirements for Award
of Degree of Master of Business Administration in Corporate Management
(MBA-CM) of Mzumbe University
The arrival of BMI has changed customer behavior, created unanticipated chances, and
interrupted traditional ways of performing business. Thus, this study aimed to
determine the business model innovation and performance of small-medium
enterprises in Dar es salaam, Tanzania. Specifically, the study aimed to determine the
extent to which SMEs use business model innovation; to examine how value creation
innovation influence SMEs’ performance; to determine how value proposition
innovation influence SMEs’ performance; and to examine how value capture
innovation influences SMEs’ performance.
The cross sectional research design with a quantitative approach was used. The study
applied a purposive sampling to choose 96 participants. In this study, factorial analysis
and as well as multiple regression were used in the analysis of data. The multiple
regression was conducted to study the relationship between Value Creation Innovation
(VCI), Value Proposition Innovation (VPI), and Value Capture Innovation (VCAI)
against SMEs' performance. Findings show that VCI, VPI, and VCAI are statistically
significant. Moreover, findings revealed that there is a strong Pearson correlation
coefficient VCI, VPI, and VCAI with SMEs' performance.
The study concludes that VCI is a significant feature of BMI which has an important
influence on the performance of a business. Moreover, the study concludes that VPI
is a significant feature of BMI that requires to be merged and assessed from period to
period to achieve a competitive advantage and empower SMEs' performance.
Furthermore, the aspects of VCAI that need eagerness include expansion of new
revenue models such as extra sales and cross-selling, to maintain long-term fiscal
earnings, acquiring long-term cyclical revenue models instead of one-time transaction
models. This research recommends that SMEs require to adopt new abilities, train
workforces frequently, adopt new skills and competencies, update technical capitals
and tools to improve quicker and more effective manufacturing of products and
amenities, and cooperate with matched partners. Moreover, this research also
recommends that SMEs should continuously assess the demand of the customer as
well as discourse-new wants.