Abstract

Newly established enterprises in China face significant challenges and opportunities, with persistently high mortality rates. Navigating market challenges and establishing sustainable competitive advantages are pressing issues for contemporary businesses. This study delves into the bridging role of business model innovation between entrepreneurial bricolage and entrepreneurial performance, with market orientation influencing the relationship boundaries. We examined 288 Chinese small and medium-sized enterprises, investigating the relationships among entrepreneurial bricolage, business model innovation, market orientation, and entrepreneurial performance. Empirical results indicate: (1) Entrepreneurial bricolage positively influences business model innovation, and business model innovation positively impacts entrepreneurial performance. (2) Business model innovation plays a fully mediating positive role between entrepreneurial bricolage and entrepreneurial performance. (3) Market orientation positively moderates the impact of entrepreneurial bricolage on business model innovation and entrepreneurial performance, and it also positively moderates the impact of business model innovation on entrepreneurial performance. (4) Market orientation positively moderates the impact of entrepreneurial bricolage, mediated by business model innovation, on entrepreneurial performance. The study results contribute to a more effective understanding of the mechanisms through which entrepreneurial bricolage and business model innovation influence entrepreneurial performance, as well as how market orientation moderates their relationships and how enterprises sustain competitive advantages.

Introduction

In recent years, entrepreneurship has become a new focal point for economic and social development worldwide, seen as a new driving force for promoting economic and social progress. In today’s highly competitive business environment, new startups face significant challenges and opportunities. While there have been many successful new startups that have achieved brilliance through business model innovation, such as Didi, Xiaomi, and Xiami Music, the mortality rate of new startups remains high. For instance, in the bike-sharing industry, apart from the leading companies Mobike and Ofo, almost all second and third-tier companies’ financing processes have been concentrated around Series A or A+ rounds, with many experiencing a wave of closures since the second half of 2017. In the complex and rapidly changing environment, due to inherent “new” and “small” disadvantages, new startups generally have a higher failure rate [1]. Therefore, how new startups can address market challenges and build sustainable competitive advantages is a pressing issue for enterprises today and will continue to be a research hotspot in the field of strategic management for a long time (see Table 12).

Entrepreneurship can undoubtedly contribute significant value to the economy and society [2]. For new startups, enhancing entrepreneurial performance becomes a practical challenge. Read points out that the success of most startups often stems from initially overlooked idle resources [3]. Entrepreneurial bricolage is a way of rationalizing the allocation of these idle (or redundant) resources, allowing startups to obtain enterprise value at the lowest cost, thereby contributing to performance improvement [4]. Entrepreneurial bricolage also facilitates entrepreneurs in innovating and adjusting business models [5]. Therefore, entrepreneurial bricolage, as a precursor to business model innovation, can provide new business opportunities and innovative ideas for enterprises [6]. However, startups are constantly in a predicament of resource constraints, and to build novel business models, they have no choice but to creatively combine existing resources [7]. Business model innovation also has a positive impact on entrepreneurial performance [8]. It is an essential means for enterprises to achieve performance, but this innovation process continually evolves in overcoming market uncertainty [9]. Thus, enterprises must be market-oriented, continuously adjusting and optimizing their products, services, and market strategies [10]. Market orientation is a culture that emphasizes creating excellent value for customers, creating more value for customers through shared value concepts, behavioral norms, and effective process combinations, thereby achieving outstanding organizational performance [11]. In the early stages of entrepreneurship, startups face the problem of resource constraints. A market-oriented strategy that focuses on customer needs and actively captures market opportunities is an effective way to gain competitive advantages for enterprises [12]. Research indicates that market orientation can enhance entrepreneurs’ sensitivity to market demand, thus promoting entrepreneurial bricolage and business model innovation [5,8], ultimately boosting entrepreneurial performance.

Conclusion

This study links entrepreneurial bricolage, business model innovation, and entrepreneurial performance through the regulation of market orientation, and uniquely constructs and explores a moderated mediation model. The study reveals several important findings: (1) Entrepreneurial bricolage significantly and positively impacts business model innovation. (2) Business model innovation, in turn, has a significant and positive effect on entrepreneurial performance. It also serves as a complete mediator between entrepreneurial bricolage and entrepreneurial performance. (3) Market orientation plays a crucial role in regulating the impact of entrepreneurial bricolage on business model innovation. It also positively regulates the impact of business model innovation on entrepreneurial performance. (4) Market orientation further exhibits a significant regulatory effect on the impact of entrepreneurial bricolage on entrepreneurial performance, acting as a mediator in this relationship. In summary, entrepreneurial bricolage, business model innovation, and market orientation are interconnected factors that influence entrepreneurial performance in a positive and significant manner.