The Moderating Effect of Entrepreneurial Leadership and Competitive Advantage on the Relationship Between Business Model Innovation and Startup Performance
Published: 23 Jul 2020
Scholar-ready metadata
Research summary
The primary purpose of this study is to study the moderating effect of entrepreneurial leadership and competitive advantage in the relationship between the business model innovation and the performance of the start-up business. We hypothesized that business model innovation has a significant association with the performance of the start-up, and entrepreneurial leadership or competitive advantage connects substantially to the business model innovation and start-up. Fifty-one respondents participate in this study. The partial least square statistical technique is used to analyse the data, which is appropriate for parametric analysis for such a sample size. The analysis shows a significant relationship between business model innovation and start-up performance. Also, there are significant relationships of entrepreneurial leadership and competitive advantage to business model innovation. However, it shows no direct relationship between entrepreneurial leadership and start-up; the association is not direct but indirect. The null hypothesis that there is no direct association between competitive advantage and start-up performance is rejected. There is a negative association between competitive advantage and start-up. Both entrepreneurial leadership and competitive advantage improve the relationship between business model innovation and start-up. However, they must be interpreted with caution
Article History
How to Cite
Phangestu, J., Kountur, R., & Prameswari, D. A.. (2020). The Moderating Effect of Entrepreneurial Leadership and Competitive Advantage on the Relationship Between Business Model Innovation and Startup Performance. Journal of Business and Retail Management Research, Volume 14 Issue 03. https://doi.org/10.24052/JBRMR/V14IS03/ART-06
Citation Context
APA
Phangestu, J., Kountur, R., & Prameswari, D. A.. (2020). The Moderating Effect of Entrepreneurial Leadership and Competitive Advantage on the Relationship Between Business Model Innovation and Startup Performance. Journal of Business and Retail Management Research, Volume 14 Issue 03. https://doi.org/10.24052/JBRMR/V14IS03/ART-06
MLA
Phangestu, Joni, et al.. "The Moderating Effect of Entrepreneurial Leadership and Competitive Advantage on the Relationship Between Business Model Innovation and Startup Performance." Journal of Business and Retail Management Research, Volume 14 Issue 03, 2020. https://doi.org/10.24052/JBRMR/V14IS03/ART-06
Chicago
Joni Phangestu, Ronny Kountur, and Dolly A. Prameswari. "The Moderating Effect of Entrepreneurial Leadership and Competitive Advantage on the Relationship Between Business Model Innovation and Startup Performance." Journal of Business and Retail Management Research Volume 14 Issue 03 (23 Jul 2020). https://doi.org/10.24052/JBRMR/V14IS03/ART-06
Harvard
Phangestu, J., Kountur, R., & Prameswari, D. A. (2020) The Moderating Effect of Entrepreneurial Leadership and Competitive Advantage on the Relationship Between Business Model Innovation and Startup Performance. Journal of Business and Retail Management Research, Volume 14 Issue 03. https://doi.org/10.24052/JBRMR/V14IS03/ART-06
References
Acquaah, M., and Appiah-Nkrumah, J. (2011). Firm-specific managerial experience and the social capital–performance relationship in a sub-Saharan African transition economy. Journal of African Business, 12(1), 8-30.
Afuah, A., Tucci, C. (2001). Internet Business Models and Strategies: Text and Cases. McGraw-Hill, New York.
Amit, R., & Zott, C. (2012). Creating value through business model innovation. MIT Sloan Management Review, 53(3), 41–49.
Aspara, J., Hietanen, J., & Tikkanen, H. (2010). Business model innovation versus replication: Financial performance implications of strategic emphases. Journal of Strategic Marketing, 18(1), 39–56.
Baregheh, A., Rowley, J., & Sambrook, S. (2009). Towards a multidisciplinary definition of innovation. Management Decision, 47(8), 1323-1339.
Barney, J. B., & Hesterly, W. S. (2010). VRIO framework. Strategic management and competitive advantage, 68-86.
Blank, S. (2013). Why the lean startup changes everything. Harvard Business Review, 91, 64–72. Retrieved from http://hbr.org/2013/05/why-the-lean-start-up-changes-everything.
Bruyat, C., & Julien, P.-A. (2001). Defining the field of research in entrepreneurship. Journal of Business Venturing, 16(2), 165–180.
Cambridge Associates (2017). US venture capital index and selected benchmark statistics. December 31, 2017. from https://www.cambridgeassociates.com/wp/content/uploads/2018/05/WEB-2017-Q4-USVC-Benchmark-Book.pdf
Chen, J.S., Tsou, H.T., Huang, A.Y.H., (2009). Service Delivery Innovation Antecedents and Impact on Firm Performance. Journal of Service Research, 12, 36-55.
Chesbrough, H. (2010). Business model innovation: Opportunities and barriers. Long Range Planning, 43(2–3), 354–363.
Cooper, A. C. (1993). Challenges in Predicting New Firm Performance. Journal of Business Venturing, 8(3), 241–253.
Davidsson, P. and Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18(3), 301-331.
Gassmann, O., Frankenberger, K., Csik, M., (2017). Geschäftsmodelle entwickeln: 55 innovative Konzepte mit dem St. Galler Business Model Navigator. Carl Hanser Verlag GmbH & Company KG, München.
George, G., Bock, A.J., (2011). The Business Model in Practice and its Implications for Entrepreneurship Research. Entrepreneurship Theory and Practice 35, 83-111.
Griffin, E. (2017). Conventional wisdom says 90% of startups fail. Data says otherwise. Fortune Retrieved from https://fortune.com/2017/06/27/startup-advice-data-failure.
Gupta, V., MacMillan, I.C., & Surie, G. (2004). Entrepreneurial leadership: Developing and measuring a cross-cultural construct. Journal of Business Venturing, 19(2), 241-260.
Haddad, H., Weking, J., Hermes, S. Böhm, M., & Krcmar, H. (2020). Business Model Choice Matters: How Business Models Impact Different Performance Measures of Startups. 15th International Conference on Wirtschaftsinformatik, March 08-11, 2020.
Hite, J.M.(2005). Evolutionary processes and paths of relationally embedded network ties in emerging entrepreneurial firms. Entrepreneurship: Theory and Practice, 29(1), 113-144.
Huang, S., Ding, D., & Chen, Z. (2014). Entrepreneurial Leadership and Performance in C hinese New Ventures: A Moderated Mediation Model of Exploratory Innovation, Exploitative Innovation and Environmental Dynamism. Creativity and Innovation Management, 23(4), 453-471.
Jones, O. (2003). Competitive advantage in SMEs: towards a conceptual framework. Competitive advantage in SMEs: Organising for innovation and change, 15-33.
Jorge Pereira-Moliner Eva M. Pertusa-Ortega Juan José Tarí Maria D. Lopez-Gamero Jose F. Molina-Azorin, (2016),"Organizational design, quality management and competitive advantage in hotels", International Journal of Contemporary Hospitality Management, Vol. 28 Iss 4 pp.
Laitinen, E. K. (1992). Prediction of failure of a newly founded firm. Journal of Business Venturing, 7 (4), 323–340.
Lindgardt, Z., Reeves, M., Stalk, G., & Deimler, M. S. (2009). Business model innovation: When the game gets tough, change the game, Boston Consulting Group.
Krishna, A., A. Agrawal, and A. Choudhary (2016). Predicting the Outcome of Startups: Less Failure, More Success. In: Proceedings of the IEEE 16th International Conference on Data Mining Workshops (ICDMW). Barcelona, 798–805.
Marmer, M., Hermann, B.L., Dogruttan, E., & Berman, R. (2012b). Startup genome report: Premature scaling v1.2. Retrieved from https://s3.amazonaws.com/startupcompass
public/StartupGenomeReport2_Why_Startups_Fail_v2.pdf
Massa, L., Tucci, C.L., Afuah, A., (2017). A Critical Assessment of Business Model Research. Academy of Management Annals 11, 73-104.
Menicucci, E., (2018). The influence of firm characteristics on profitability: Evidence from Italian hospitality industry. International Journal of Contemporary Hospitality Management 30, 2845-2868.
Nichter, S. and Goldmark, L. (2009). Small firm growth in developing countries. World Development, 37(9), 1453-1464.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation. Hobroken, NJ: Wiley.
Palalic, R. (2017). The phenomenon of entrepreneurial leadership in gazelles and mice: A qualitative study from Bosnia and Herzegovina. World Review of Entrepreneurship, Management and Sustainable Development, 13(2–3), 211–236.
Potjanajaruwit, P. (2018). Competitive advantage effects on firm performance: A case study of startups in Thailand. Journal of International Studies, 10(1), 104-111
Porter, M., (1990). Competitive Advantage of Nations. Harvard Business Review March-April.
Preuss, L. (2011). Innovative CSR. Journal of Corporate Citizenship, 42(Summer 2011), 17–32.
Rea, D. (2017). Developing entrepreneurial leadership: the challenge for sustainable organisations. International Journal of Work Innovation, 2(1).
Renko, M., El Tarabishy, A., Carsrud, A. L., & Brannback, M. (2015). Understanding and measuring entrepreneurial leadership style. J. Small Bus. Manag. 53, 54–74.
Romero, M.C., Sánchez, M., Villalobos, J., (2017). Business model loom: A pattern-based approach towards the definition of business models. Lecture Notes in Business Information Processing, 291, 463-487.
Sawaean, F.A.A., Ali, K.A.M., (2020). The mediation effect of TQM practices on the relationship between entrepreneurial leadership and organizational performance of SMEs in Kuwait. Management Science Letters, 10, 789-800.
Spiegel, O., Abbassi, P., Zylka, M., Schlagwein, D., Fischbach, K., Schoder, D., (2016). Business Model Development, Founders' Social Capital, and the Success of Early Stage Internet Start-ups: A Mixed-Method Study. Information Systems Journal 26, 421-449.
Startup Genome LLC (2018). Global start-up ecosystem report. Succeeding in the new era of technology. Retrieved from https://startupgenome.com/all-reports
Sultan, S., & Mason, M. (2010). Competitive Advantage of SMEs
Turulja, L., Bajgoric, N., (2018). Innovation, firms' performance, and environmental turbulence: Is there a moderator or mediator? European Journal of Innovation Management, 22, 213-232.
Weking, J., Brosig, C., Böhm, M., Hein, A., Krcmar, H., (2018). Business Model Innovation Strategies for Product Service Systems – An Explorative Study in the Manufacturing Industry. Twenty-Sixth European Conference on Information Systems (ECIS 2018) Portsmouth, UK.
Weking, J., Stöcker, M., Kowalkiewicz, M., Böhm, M., Krcmar, H., (2018). Archetypes for Industry 4.0 Business Model Innovations. Twenty-fourth Americas Conference on Information Systems (AMCIS 2018), New Orleans.
Wells, P. (2008). Alternative business models for a sustainable automotive industry. In A. Tukker, M. Charter, C. Vezzoli, E. Stø, & M. M. Andersen (Eds.), System innovation for sustainability I (pp. 80–98). Sheffield: Greenleaf Publishing Ltd.
Wiklund, J., Shepherd, D., (2005). Entrepreneurial orientation and small business performance: a configurational approach. Journal of Business Venturing, 20, 71-91.
Zaridis, A. D. (2009, August). Competitive advantage and its sources in an evolving market. In AIP Conference Proceedings (Vol. 1148, No. 1, pp. 917-921). AIP.
Zauberman, G. (2003). The Intertemporal Dynamics of Consumer Lock-in. Journal of Consumer Research, 30, 405-419.
Zhang, M., & Hartley, J. L. (2018). Guanxi, IT systems, and innovation capability: The moderating role of proactiveness. Journal of Business Research, 90, 75-86.
Zott, C., Amit, R. (2010). Business Model Design: An Activity System Perspective. Long Range Planning, 43, 216-226.