Do SMEs actually know what business model innovation is? Evidence from Switzerland

Abstract

Business model innovation (BMI) has received increasing attention from academics in recent years and its positive impact on companies has been demonstrated in the literature. However, there is a lack of research though on whether the managers of SMEs actually know what BMI means and how to implement it. This study is looking at this gap and analysed the know-how about the term in the Swiss canton of Schwyz. It is based on a survey among 418 managers of SMEs and shows that there is lack of knowledge on what BMI is and how to implement it; however, the importance of it is well-known. This research contributes to the existing literature in three ways. Firstly, awareness is the first needed step in increasing the number of BMIs in Switzerland, as many companies do not know the term. Secondly, managers claim to have no issues in generating new ideas and know about the importance of BMI, but nevertheless, do not implement it. Thirdly, only a small minority of SMEs work with universities on innovation and miss out on a large support structure. The study closes with recommendations for companies as well as universities and other state organisations to support BMI in Switzerland through the steps awareness, empowerment, implementation.