Open Access

Business Model Innovation: Impact of Entrepreneurial Competencies to New Value Proposition

,  and   
Jun 20, 2025

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Background

Rapid changes and dynamic markets significantly impact the way businesses operate. Many companies fail to adapt and innovate their business models, which jeopardises their sustainability. Managers, as key decision-makers, play a pivotal role in the innovation process, whereby their entrepreneurial competencies directly influence various dimensions of business model innovation.

Objectives

The main aim of this study is to examine the impact of entrepreneurial competencies on the new value proposition dimension of business model innovation (BMI), exploring competencies such as opportunity recognition, analytical thinking, innovativeness, tenacity, and passion for work. It investigates how these competencies contribute to developing new offerings and new channels, attracting new customers and markets, and building new customer relations.

Methods/Approach

The study is conducted on a sample of 267 managers of medium and large companies across various industries in Bosnia and Herzegovina. The data were analysed using Structural Equation Modelling (SEM).

Results

The results show that different entrepreneurial competencies have a significant impact on various aspects of a new value proposition.

Conclusions

The study contributes to a deeper understanding of the influence of different entrepreneurial competencies on new value proposition dimensions within BMI. Managers who effectively utilise these competencies can enhance their companies’ value propositions, thereby increasing competitiveness and business success.