Business Model Innovation of Saudi SMEs: A Dynamic Capability Perspective

Abstract

This study aims to examine how SMEs can design innovative business models, through exploring the role that dynamic capabilities - 'sensing, seizing, reconfiguring' - can play in SMEs' business model innovation. By conducting semi-structured interviews among four SMEs operating in Saudi Arabia, the findings have revealed that sensing capabilities play a significant role in enabling business model innovation, followed by seizing capabilities as important capabilities in the implementation and operation stages, whilst reconfiguring capabilities play a lesser role in the process.