The integrative business model as a linkage to venture growth: An insight from the outside box of strategic decisions

Abstract

The practice of implementing a business model (BM) is at the corporate level of larger firms mostly in a developed economy, and there is a doubt whether the practice of BM existed among small firms of developing economies. There is also a lack of clarity in its contribution to the growth of the small venture in low‐income markets. Therefore, this study tries to uncover the relationship between the subject of integrative BM and venture growth, with an emphasis on strategic decisions. To achieve this, we analyzed data collected from 215 small manufacturing firms in Addis Ababa using structural equation modeling (SEM). The model integrates the internal aspects of BM development with the external aspects and the strategic decisions in determining their direct and indirect contribution to the venture's growth and unlock the aid of integrative BM to small venture growth. The study also links the strategic decisions from the perspective of strategic flexibility, strategic alliance, and competitive advantage and the exercise of firms networking to value creation, proposition, and capturing. To the end, we forwarded implications for practitioners and future research.

Strategic decision-making in small and medium enterprises in South Africa

“…Two unique SDM actions identified from the data were that the option or outcomes with the least cost implications would be selected and that SMEs do not follow specific steps in their SDM. The latter partially coincides with the literature, in that SDM in SMEs is described as inconsistent (Chebo & Kute 2019). A lack of consistency in SDM is concerning, as it could possibly indicate poor strategy development (Chebo & Kute 2019).…”

“…The latter partially coincides with the literature, in that SDM in SMEs is described as inconsistent (Chebo & Kute 2019). A lack of consistency in SDM is concerning, as it could possibly indicate poor strategy development (Chebo & Kute 2019). Given the resource limitations, it is reasonable to assume that cost implications would perhaps be a weighting criterion in SDM and a determining factor in whether to implement a strategic decision or not.…”

The autonomous side of EO and firm performance: the role of professional experience and entrepreneurial engagement

“…Many researchers used subjective measures of performance over objective measures (e.g. Chebo and Wubetie, 2021; Chebo and Kute, 2019). Also, Gonzalez-Benito and Gonzalez-Benito (2005) suggest the use of subjective measures because subjective measure facilitates the measurement of complex dimensions of performance and cover both financial and nonfinancial indicators.…”