Digitalization for Business Model Innovation: Create, Change, and Improve for Values

Abstract

Recently, business organizations, including SMEs, have faced challenges in utilizing digitalization in the face of global competition. It stated that the discourse related to digitalization has a role in creating, changing, and improving for values business model innovation (BMI) in SMEs. That is the concern of digitalization researchers, SME owners, SMEs regulators, and policymakers. This study's purpose is to reveal that the digitization of Small and Medium Enterprises (SMEs) is to create, transform, and enhance values derived from business model innovations. The research problem is to find out the factors that influence the implementation of digitalization in creating, changing, and improving the values of business model innovation in Indonesian SMEs. Data collection on a survey of 100 Indonesian SMEs. This study using a convergent parallel mixed methods research approach. As the research sample, data collecting from a survey of 100 valid SMEs. The main findings of this study show that digitalization affecting by external business factors and dynamic capability factor has a significant role in creating, changing, and improving values in business model innovation for Indonesian SMEs. The main research contribution is providing input related to business model innovation for SMEs and supporting the SME digitalization program from the Indonesian government.