Factors for Success in Business Model Innovation

Abstract

The goal of this paper to identify the success factors for business model innovation, evaluate the
theoretical hypotheses statistically with partial least squares, and give recommendations for managerial actions on the basis of a cluster analysis. A cross-industry management survey was done to collect the sample data. The study consists of ten constructs, that are all critical components of a business model. To assess the complex nature of business model innovation, we choose a second-order SEM-model. The contribution of this paper to the management literature is achieved by providing concrete and validated entrepreneurial action strategies for superior economic growth.