LEVERAGING STRATEGIC MANEUVERABILITY TO AUGMENT BUSINESS MODEL INNOVATION FOR COMPETITIVE ADVANTAGE DURING ENVIRONMENTAL TURBULENCE

NBR Volume-5 Issue-1 2023

LEVERAGING STRATEGIC MANEUVERABILITY TO AUGMENT BUSINESS MODEL INNOVATION FOR COMPETITIVE ADVANTAGE DURING ENVIRONMENTAL TURBULENCE

Shahida Mariam
Faculty of Management Sciences, International Islamic University, Islamabad. Pakistan

Kausar Fiaz Khawaja
Faculty of Management Sciences, International Islamic University, Islamabad. Pakistan

Hafiz Ghufran Ali Khan
Faculty of Management Sciences, International Islamic University, Islamabad. Pakistan

ABSTRACT

Purpose: Ensuring that businesses thrive in turbulent environments is as challenging as navigating the proverbial stormy waters. Drawing upon attention-based and action-based views of firms’ dynamic capabilities, we examined whether firms with high strategic maneuverability can gain a competitive advantage in turbulent environments by adopting business model innovation.
Design/Methodology: We obtained data from 174 managers of SMEs in Pakistan dealing with consumer staples industry retail through a two-wave online survey. The study data was analyzed using process modeling technique to test the proposed theoretical model.
Findings: The results revealed a direct negative relationship between turbulent environment and competitive advantage and an indirect positive relationship between these variables via business model innovation. In this context, the study found that strategic maneuverability further fortified the indirect positive relationship and weakened the negative direction.
Originality: The results show how business model innovations can assist in transforming threats from the turbulent environment into opportunities for competitive advantage and that firms in turbulent environments pursue business model innovation to a greater degree when they have high strategic maneuverability. The implications of these findings, limitations, and possibilities for future research are discussed.

Keywords: Turbulent environment, strategic maneuverability, business model innovation

Paper type: Research Paper

Received: 19 April 2023
Revised: 04 June 2023
Accepted: 06 June 2023
Published: 13 July 2023

Full-Length Paper: PDF

DOI: https://doi.org/10.37435/NBR23041901

This is an open-access article under the CC BY 4.0 license