Business Model Innovation: The Role of Enterprise Risk Management and Strategic Agility

Changing business environment create uncertainty and risks to the companies. In the such situation, companies need to innovate their business model innovation to enhance their competitive advantage and increase their financial performance. Business model innovation is an important key for companies to respond the changes in the business environment. Enterprise risk management and strategic agility have important role to business model innovation in the companies in the changing business environment. This paper will elaborate and describe the relationship between enterprise risk management, strategic agility, business model innovation and financial performance especially in the changing business environment. The study conducted through literature review. Based on the literature review, the result shows that in the uncertain and risky business environment, enterprise risk management has positive influence to strategic agility and business model innovation, strategic agility has positive influence to business model innovation, and then business model innovation creates positive impact to the company financial performance.