Business model innovation and performance of small medium enterprises in Dar es salaam, Tanzania
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Mzumbe University
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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.
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.
Keywords
arrival of BMI, Value Proposition Innovation (VPI)