Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs?

Classified as probably not a substantial claim.

Digital transformation is changing how small- and medium-sized enterprises (SMEs) create and capture value.

“Digital transformation is changing how small-and medium-sized enterprises (SMEs) create and capture value (Bharadwaj, El Sawy, Pavlou, & Venkatraman, 2013;Lucas, Agarwal, Clemons, El Sawy, & Weber, 2013).”

• cites Bharadwaj, El Sawy, Pavlou, & Venkatraman, 2013 sourcePartly supported

  The “Sources of Value Creation and Capture” section (page not provided) says digital business strategy alters how firms create and capture value. The “Emergence of Digital Business Strategy” section discusses established firms and startups, but the paper does not establish this claim specifically for SMEs. (LLM, conf=0.86)

  Experimental — accuracy not yet measured
• cites Lucas, Agarwal, Clemons, El Sawy, & Weber, 2013 sourceNot checked — no full text of the source

Probably not a substantial claim: may not pass S2 (checkable).

Strategy needs to be implemented in the business logic as a first step in the BMI process.

“We follow the view that strategy needs to be implemented in the business logic as a first step in the BMI process.”

• cites Al-Debei & Avison, 2010 sourceNot checked — no full text of the source
• cites Hedman & Kalling, 2003 sourceNot checked — no full text of the source
• cites Seddon et al., 2004 sourcePartly supported

  The Introduction (page unavailable) describes business models as abstractions of strategy that capture how a firm creates value. That supports a relationship between strategy and business logic, but the paper does not say strategy must be implemented in that logic or that this is the first step in a business-model innovation process. (LLM, conf=0.84)

  Experimental — accuracy not yet measured

Probably not a substantial claim: may not pass S3 (load-bearing).

The cultural dimension to innovativeness is often considered a required condition for the capacity dimension.

“The cultural dimension to innovativeness is often considered as a required condition for the capacity dimension (Bock, Opsahl, George & Gann, 2012;Teece, 2010).”

• cites Bock, Opsahl, George & Gann, 2012 sourceSupported
• cites Teece, 2010 sourceNot checked — no full text of the source

May combine two claims.

Literature on BMI with a focus on SMEs is limited and mainly qualitative, with a lack of studies on how digitalization affects SMEs' BMs.

“Literature on BMI with a focus on SMEs is limited and mainly qualitative in nature (Heikkilä et al., 2018), with a lack of studies that focus on how digitalization affects SMEs' BMs.”

• cites Heikkilä et al., 2018 sourcePartly supported

  The Introduction says few studies have focused specifically on SMEs’ business models, and the Discussion says most existing BMI literature focuses on large corporations. The paper uses qualitative analysis for its own study (Section 3.2), but the passages do not establish that the SME-focused literature is mainly qualitative. The separate digitalization clause follows the citation and is not attributed to this source. (LLM, conf=0.85)

  Experimental — accuracy not yet measured

May combine two claims.

The market share of an SME or start-up can be positively affected by BM experimentation practices, as a novel BM can recombine existing internal resources or use those of external partners.

“The market share of a SME or start-up can also be positively affected by BM experimentation practices, as a novel BM can recombine existing internal resources or use those of external partners (Zott & Amit, 2007).”

• cites Zott & Amit, 2007 sourcePartly supported

  The Discussion and Conclusion says firms can innovate by recombining resources they control and by harnessing those of partners, suppliers, and customers. The Abstract reports a positive association between novelty-centered business model design and entrepreneurial-firm performance. But the Dependent Variables section measures performance using stock-market value, not market share, and the paper does not establish an effect of business-model experimentation practices specifically. (LLM, conf=0.88)

  Experimental — accuracy not yet measured

Classified as probably not a substantial claim.

Business performance consists of financial performance (e.g., sales growth, profitability, market value) and operational performance (e.g., market share, product quality).

“We follow the conceptualization by Venkatraman and Ramanujam's (1986) that business performance constitutes of financial performance (e.g., sales growth, profitability, market value) and operational performance (e.g., market share, product quality).”

• cites Venkatraman and Ramanujam's (1986) sourceSupported

Probably not a substantial claim: may not pass S3 (load-bearing).

BMI has four elements: conceptualizing new ideas, creating new business models, adapting the business model after it is in operation, and experimenting to learn about and validate the model.

“Berends et al. (2016) defined four elements of BMI: (a) conceptualizing new ideas, (b) creating new BMs, (c) adapting the BM after it is in operation, and (d) experimenting to learn about and validate the model.”

• cites Berends et al. (2016) sourceSupported

May combine two claims.

Solution 2 shows that the presence of BM strategy implementation practices leads to the occurrence of the outcome-increased firm performance; this solution has the lowest consistency value (0.838) of the four configurations.

“Solution 2 shows that the presence of BM strategy implementation practices leads to the occurrence of the outcome-increased firm performance; however, from the consistency standpoint, this solution has the lowest value (0.838) of the four configurations obtained.”

• AssumptionThe authors state this as an assumption: There can be many pathways to the same outcome (equifinality).
• AssumptionThe authors state this as an assumption: Each pathway can contain different combinations of conditions, and the effect of combinations of necessary and sufficient conditions is sought rather than the net effect of each individual condition.

May combine two claims.

None of the other conditions exceed the threshold for necessity, and thus are not necessary for the outcome to occur.

“For the rest of the conditions, we can see that none of them exceed the threshold (both their presence as well as their absence), and thus are not necessary for the outcome to occur.”

May combine two claims.

Solution 3 indicates that the presence of innovativeness and the absence of BM experimentation practices lead to the outcome of interest.

“Solution 3 indicates that the presence of innovativeness and the negation (absence) of BM experimentation practices lead to the outcome of interest.”

• AssumptionThe authors state this as an assumption: There can be many pathways to the same outcome (equifinality).
• AssumptionThe authors state this as an assumption: Each pathway can contain different combinations of conditions, and the effect of combinations of necessary and sufficient conditions is sought rather than the net effect of each individual condition.

May combine two claims.

One condition (BM strategy implementation practices) has a consistency value over 0.90 and can be seen as a necessary condition for the outcome to occur.

“Table 8 shows that there is one condition (BM strategy implementation practices) with consistency value over 0.90, which can therefore be seen as a necessary condition for the outcome to occur.”

May combine two claims.

Respondents had adequate knowledge levels, with mean responses of 6.7, 6.6, and 5.9 for product/service, business processes, and new product/service development.

“Mean responses were 6.7, 6.6, and 5.9, respectively, which indicates adequate knowledge levels.”

May combine two claims.

Strategic decisions on digital transformation do not automatically improve performance, because they require SMEs to rethink and change their business model.

“Therefore, strategic decisions on digital transformation do not automatically improve performance, because it requires SMEs to rethink and change their business model (hereinafter BM).”

Probably not a substantial claim: may not pass S3 (load-bearing).

CEOs from top firms acknowledge the impact of BMI on the operation margin growth of their firms.

“An IBM CEO study reported that CEOs from top firms acknowledge the impact of BMI on the operation margin growth of their firms (Pohle & Chapman, 2006).”

• cites Pohle & Chapman, 2006 sourceNot checked — no full text of the source

May combine two claims.

Even failing BMI experimentation activities provide lessons on what works and can contribute to finding successful BMs and to the capacity to innovate.

“Even failing BMI experimentation activities provide lessons on what works and can thus not only contribute to finding successful BMs (Chesbrough, 2010;McGrath, 2010), but also to the capacity to innovate of the firm.”

• cites Chesbrough, 2010 sourceNot checked — no full text of the source
• cites McGrath, 2010 sourceNot checked — no full text of the source

Classified as probably not a substantial claim.

The large number of new opportunities driven by digitalization puts pressure on SMEs to reconsider their current BMs or critically reflect on their current strategy.

“The large number of new opportunities driven by digitalization put pressure on SMEs to reconsider their current BMs or critically reflect on their current strategy in order to identify new business opportunities (Kiel, Arnold, Collisi, & Voigt, 2016, p. 675).”

• cites Kiel, Arnold, Collisi, & Voigt, 2016Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

May combine two claims.

fsQCA allows uncovering how combinations of causal measures lead to the outcome of interest (causal complexity), whereas regression analysis assesses net effects of antecedents.

“in contrast to regression analysis that assess the net effects of antecedents, fsQCA allows uncovering how combinations of causal measures lead to the outcome of interest (i.e., causal complexity)”

• cites Ragin, 1987Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

Probably not a substantial claim: may not pass S4 (based).

BM experimentation literature focuses largely on descriptive process theory and does not typically make assertions about performance implications.

“BM experimentation literature, on the other hand, focuses largely on descriptive process theory and does not typically make assertions about performance implications.”

Probably not a substantial claim: may not pass S4 (based). May combine two claims.

What role BM experimentation practices play in BMI and how BM experimentation affects organizations' performance and innovativeness is still under-researched.

“Consequently, what role BM experimentation practices play in BMI and how BM experimentation affects organizations' performance and innovativeness is still under-researched.”

Probably not a substantial claim: may not pass S3 (load-bearing).

Innovativeness is a multidimensional concept.

“Moreover, innovativeness is a multidimensional concept (Lee & O'Connor, 2003;Siguaw, Simpson & Enz, 2006).”

• cites Lee & O'Connor, 2003 sourceNot checked — no full text of the source
• cites Siguaw, Simpson & Enz, 2006 sourceNot checked — no full text of the source

Probably not a substantial claim: may not pass S4 (based).

Without financial and human resources, BM experimentation projects have only limited impact.

“It may be clear that without financial and human resources, BM experimentation projects have only limited impact.”

• AssumptionThe authors state this as an assumption: Dedicating resources to a specific task enables increased activity on that task.

Probably not a substantial claim: may not pass S3 (load-bearing).

Most scholars argue that BMs should be a strategy implementation.

“Most scholars argue that BMs should be a strategy implementation (Al-Debei & Avison, 2010;Cortimiglia, Ghezzi, & Frank, 2016).”

• cites Al-Debei & Avison, 2010 sourceNot checked — no full text of the source
• cites Cortimiglia, Ghezzi, & Frank, 2016 sourceNot checked — no full text of the source

May combine two claims.

By innovating their BMs, firms can gain competitive advantage, as BMs might be hard to replicate, resulting in continued profitability.

“By innovating their BMs, firms can also gain competitive advantage, as BMs might be hard to replicate, thus resulting in firms' continued profitability (Chesbrough, 2006).”

• cites Chesbrough, 2006Not checked — no full text of the source

May combine two claims.

fsQCA allows a finer grained understanding of causal mechanisms by adopting a complex causality perspective, whereas regression-based analyses can only uncover necessary conditions that are linearly related to the outcome.

“as regression-based analyses can only uncover necessary conditions that are linearly related to the outcome variable of interest, fsQCA allows a finer grained understanding of the causal mechanisms by adopting a complex causality perspective.”

• cites Ragin, 1987Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

Probably not a substantial claim: may not pass S3 (load-bearing).

A change in strategy will trigger BM experimentation.

“Consistent with this view of BMs as snapshot materializations of a strategy, a change in strategy will trigger BM experimentation.”

Probably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.

The relationship between BMs and strategy has long been debated, with less agreement on their exact interrelation.

“The relationship between BMs and strategy has long been debated (Hedman & Kalling, 2003;Seddon, Lewis, Freeman, & Shanks, 2004).”

• cites Hedman & Kalling, 2003 sourceNot checked — no full text of the source
• cites Seddon, Lewis, Freeman, & Shanks, 2004Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

Classified as probably not a substantial claim. May combine two claims.

This capacity drives firms to improve continuously and results in improved business performance.

“This capacity drives firms to improve continuously and, thus, results in improved business performance.”

Probably not a substantial claim: may not pass S3 (load-bearing).

Experimentation is an intermediate step towards realizing a new BM that is in line with a firm's new strategy.

“In that sense, experimentation is an intermediate step towards realizing a new BM that is in line with a firm's new strategy (Hayashi, 2009;McGrath, 2010;Sosna et al., 2010).”

• cites Hayashi, 2009Not checked — no full text of the source
• cites McGrath, 2010 sourceNot checked — no full text of the source
• cites Sosna et al., 2010 sourceNot checked — no full text of the source

Probably not a substantial claim: may not pass S3 (load-bearing).

BMI takes place through a learning process in which discovery via experimentation is more appropriate than conventional analytical or cognitive-oriented approaches.

“BMI takes place through a learning process in which discovery via experimentation is more appropriate than conventional analytical approaches (McGrath, 2010) or more cognitiveoriented approaches (Berends, Smits, Reymen, & Podoynitsyna, 2016;Martins, Rindova, & Greenbaum, 2015;Tikkanen, Lamberg, Parvinen, & Kallunki, 2005).”

• cites McGrath, 2010 sourceNot checked — no full text of the source
• cites Berends, Smits, Reymen, & Podoynitsyna, 2016 sourceNot checked yet

  Not checked in the free run.

• cites Martins, Rindova, & Greenbaum, 2015 sourceNot checked — no full text of the source

Classified as probably not a substantial claim.

If companies have more resources available for innovation-related activities, the company will increase its capacity to innovate.

“This implies that, if companies have more resources available for innovation-related activities, the company will increase its capacity to innovate.”

• AssumptionThe authors state this as an assumption: Dedicating resources to a specific task enables increased activity on that task.

Probably not a substantial claim: may not pass S4 (based).

Most BM experimentation studies develop descriptive process theories rather than explanatory variance theories.

“Overall, most BM experimentation studies develop descriptive process theories rather than explanatory variance theories.”

Probably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.

While some conceptualizations of BM experimentation are congruent, considerable differences emerge among them.

“While some of these conceptualizations are congruent, considerable differences emerge as well.”

Probably not a substantial claim: may not pass S3 (load-bearing).

A final check on translations and consistency between language versions was done by a professional research agency.

“Moreover, a final check on translations and consistency between the different language versions was done by a professional research agency.”

Probably not a substantial claim: may not pass S3 (load-bearing).

As in any cross-sectional study, the direction of causality cannot be inferred from the data alone.

“A final limitation, as in any cross-sectional study, is that the direction of causality cannot be inferred from the data alone.”

May combine two claims.

Allocating resources for BM experimentation pays off, as it leads to increased levels of BM experimentation and, indirectly, to higher firm performance.

“We show that allocating resources for BM experimentation pays off, as it leads to increased levels of BM experimentation and, indirectly, to higher frim performance.”

• AssumptionRests on an assumption: The 321 European SMEs studied are representative of SMEs engaged in digital transformation, so that the findings generalize to that population.

Probably not a substantial claim: may not pass S3 (load-bearing).

There is reverse causality in the relationship between BMI and innovativeness: more innovative firms have faster innovation cycles, which fosters their business model innovation processes.

“We are aware that there is also a reverse causality, as more innovative firms have faster innovation cycles, which fosters their processes of BMI (Vazquez, Santos & Alvarez, 2001).”

• cites Vazquez, Santos & Alvarez, 2001Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

Classified as probably not a substantial claim.

The research design specifically focused on firms that are knowingly or unknowingly engaged in BMI.

“We specifically focused on firms that are knowingly or unknowingly engaged in BMI.”

Probably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.

Some of the measurement items used in this paper were based on subjective judgments; connecting these subjective judgments with actual performance data would be interesting, however, this is not possible due to European rules in relation to research ethics and informed consent.

“In addition, some of the measurement items used in this paper were based on subjective judgments; connecting these subjective judgments with actual performance data would be interesting, however, this is not possible due to European rules in relation to research ethics and informed consent.”

Probably not a substantial claim: may not pass S3 (load-bearing).

The exploration phase of business model innovation consists of initial designs and trial-and-error improvements, which may last for several years before leading to sustained change in the business model.

“Through an extensive case study, Sosna, Trevinyo-Rodriguez, and Velamuri (2010) found that the exploration phase of BMI consists of initial designs and trial-and-error improvements, which may last for several years before leading to sustained change in the BM.”

• cites Sosna, Trevinyo-Rodriguez, and Velamuri (2010) sourceNot checked — no full text of the source

May combine two claims.

Firms can improve their performance through (a) allocating more resources for BM experimentation and (b) enhancing their capacity to innovate either by increasing the number of innovation or spending more time for innovation.

“the results show that firms can improve their performance through (a) allocating more resources for BM experimentation and (b) enhancing their capacity to innovate either by increasing the number of innovation or spending more time for innovation.”

Probably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.

Innovativeness may lead to new technological innovations, which in turn require changes in business models.

“We are aware that innovativeness may lead to new (technological) innovations which in turn require changes in BMs (Giesen et al., 2010;Calia, Guerrini & Moura, 2007).”

• cites Giesen et al., 2010 sourceNot checked — no full text of the source
• cites Calia, Guerrini & Moura, 2007Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

Probably not a substantial claim: may not pass S3 (load-bearing).

BM experimentation comprises three activities: retrieving information about the environment, encouraging new ideas, and learning from mistakes.

“Achtenhagen, Melin, and Naldi (2013) concluded, through inductive research, that BM experimentation comprises three activities: (a) retrieving information about the environment, (b) encouraging new ideas, and (c) learning from mistakes.”

• cites Achtenhagen, Melin, and Naldi (2013) sourceNot checked — no full text of the source

May combine two claims.

The results are consistent with previous findings showing that innovation is a key success factor for firm performance and that BMI is a vehicle for firm transformation, and confirm Zott et al.'s finding that BMI is key to firm performance.

“Our results are not only consistent with previous findings (e.g., Chesbrough, 2010;Kraus, Brem, Schüssler, Schüssler, & Niemand, 2017;Trimi & Berbegal-Mirabent, 2012) showing that innovation is a key success factor for the firm performance, and that BMI is a vehicle for the firm transformation, but also confirm earlier Zott's et al. (2011) finding that argue BMI is the key to firm performance.”

• cites Chesbrough, 2010 sourceNot checked — no full text of the source
• cites Kraus et al., 2017 sourceNot checked — no full text of the source
• cites Zott's et al. (2011) sourceNot checked — no full text of the source

Probably not a substantial claim: may not pass S3 (load-bearing).

Huang et al. (2012) used a list of components as indicators.

“Huang et al. (2012) used a list of components as indicators.”

• cites Huang et al. (2012) sourceNot checked — no full text of the source

May combine two claims.

The PLS-SEM study suggests that spending time and resources on BM experimentation and strategy implementation both contribute to overall firm performance, mediated by higher levels of innovativeness and BM experimentation practices.

“On the one hand, the PLS-SEM study suggests that spending time and resources on BM experimentation and strategy implementation both contribute to overall firm performance, mediated by higher levels of innovativeness and BM experimentation practices.”

• AssumptionRests on an assumption: The 321 European SMEs studied are representative of SMEs engaged in digital transformation, so that the findings generalize to that population.

Probably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.

This study was conducted in Europe, in many different languages, and with cultural and economic differences despite the context of a common market.

“In addition, this study was conducted in Europe, in many different languages, and with cultural and economic differences despite the context of a common market.”

Probably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.

BM experimentation is researching technical challenges and performing new practices, while BM learning is acquiring new knowledge, discussing new ideas, and contacting and interacting with others.

“Cavalcante (2013) distinguishes experimentation from learning, defining BM experimentation as researching technical challenges and performing new practices, and BM learning as acquiring new knowledge, discussing new ideas, and contacting and interacting with others, for example, new business partners.”

• cites Cavalcante (2013) sourceNot checked — no full text of the source

Classified as probably not a substantial claim.

Content validity was ensured by discussing items in a team of BM researchers and pretesting with independent academic experts and business managers.

“We ensured content validity by discussing the items in a team of BM researchers from different universities and by pretesting them with independent academic experts and business managers.”

May combine two claims.

The fsQCA results suggest that there are different ways to boost performance and that higher performing firms either choose to spend their efforts on BM experimentation or on strategy implementation.

“Specifically, the fsQCA results suggest that there are different ways to boost performance and that higher performing firms either choose to spend their efforts on BM experimentation or on strategy implementation.”

• AssumptionThe authors state this as an assumption: There can be many pathways to the same outcome (equifinality).
• AssumptionThe authors state this as an assumption: Each pathway can contain different combinations of conditions, and the effect of combinations of necessary and sufficient conditions is sought rather than the net effect of each individual condition.
• AssumptionRests on an assumption: The 321 European SMEs studied are representative of SMEs engaged in digital transformation, so that the findings generalize to that population.

Probably not a substantial claim: may not pass S3 (load-bearing).

Back-translation of the questionnaire into English was performed to ensure translation did not introduce bias.

“In order to detect potential problems (e.g., ambiguous expressions) and cultural issues, back-translation of the questionnaire into English was performed to ensure that translation did not introduce any bias in the measures.”

Probably not a substantial claim: may not pass S3 (load-bearing).

The questionnaire was iterated and pretested with managers and academics to improve clarity.

“The questionnaire was iterated and pretested, reading it aloud to managers and academics to improve the clarity of questions.”

Probably not a substantial claim: may not pass S3 (load-bearing), S4 (based).

Research on business model experimentation is scarce.

“Research on BM experimentation is scarce.”

Probably not a substantial claim: may not pass S3 (load-bearing).

Clauss (2017) and Spieth and Schneider (2016) made valuable contributions in the form of validated scales to measure BMI.

“Recently,Clauss (2017) andSpieth and Schneider (2016) made valuable contributions in the form of validated scales to measure BMI.”

• cites Clauss (2017)Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

• cites Spieth and Schneider (2016) sourceNot checked — no full text of the source

Probably not a substantial claim: may not pass S4 (based).

This paper is the first to position business model innovation within a context of digitalization.

“This paper is a first to position BMI within a context of digitalization.”

Probably not a substantial claim: may not pass S3 (load-bearing).

The questionnaire was pretested in every one of the 12 countries.

“The questionnaire was pretested in every one of the 12 (the aforementioned 11 countries and Austria) countries.”

Probably not a substantial claim: may not pass S2 (checkable), S3 (load-bearing), S4 (based).

Our paper is among the first to show the performance implications of conducting BM experimentation and strategy implementation.

“Our paper is among the first to show the performance implications of conducting BM experimentation and strategy implementation.”

• AssumptionRests on an assumption: The 321 European SMEs studied are representative of SMEs engaged in digital transformation, so that the findings generalize to that population.

Classified as probably not a substantial claim.

The questionnaire included a filter question asking whether the company changed its BM in the past 24 months to ensure validity of responses.

“To ensure the validity of responses, the questionnaire starts by asking whether the company changed its BM in the past 24 months.”

Probably not a substantial claim: may not pass S3 (load-bearing).

Souto (2015) used an unspecified two-item scale to measure BMI.

“Souto (2015) used an unspecified two-item scale.”

• cites Souto (2015) sourceNot checked — no full text of the source