Opportunity Recognition and SME Performance: The Mediating Effect of Business Model Innovation

12 Pages Posted: 22 May 2017

See all articles by Hai Guo

Hai Guo

Renmin University of China

Jintong Tang

Saint Louis University - Department of Management

Zhongfeng Su

Nanjing University - School of Business

Jerome Katz

Saint Louis University - Richard A. Chaifetz School of Business

Date Written: June 2017

Abstract

Opportunity recognition is vital for small and medium‐sized enterprises (SMEs), but SMEs face challenges in capturing recognized opportunities. Given that opportunity recognition does not automatically lead to higher SME performance and that SMEs need to take appropriate actions to exploit recognized opportunities to achieve better performance, it is imperative to explore the mediators that enable SMEs to translate opportunity recognition into higher performance. This study proposes that business model innovation may be a key conduit through which opportunity recognition affects SME performance. Based on a dataset of 155 SMEs, we find that the positive relationship between opportunity recognition and SME performance is mediated by business model innovation. These findings not only aid SMEs in accomplishing the performance effect of opportunity recognition, but also provide some insights into the implications of business model innovation.

Suggested Citation

Guo, Hai and Tang, Jintong and Su, Zhongfeng and Katz, Jerome, Opportunity Recognition and SME Performance: The Mediating Effect of Business Model Innovation (June 2017). R&D Management, Vol. 47, Issue 3, pp. 431-442, 2017, Available at SSRN: https://ssrn.com/abstract=2970795 or http://dx.doi.org/10.1111/radm.12219

Hai Guo (Contact Author)

Renmin University of China ( email )

No.59 Zhongguancun Street
Haidian Dist.
Beijing, Beijing 100872
China

Jintong Tang

Saint Louis University - Department of Management ( email )

Saint Louis, MO
United States

Zhongfeng Su

Nanjing University - School of Business ( email )

22 Hankou Road
Nanjing, Jiangsu 210093 210093
China

Jerome Katz

Saint Louis University - Richard A. Chaifetz School of Business ( email )

3674 Lindell Blvd.
St. Louis, MO 63108
United States
314-977-3864 (Phone)

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