Managerial Mindfulness and Business Model Innovation as Antidotes to SME Survival and Growth: Evidence from Sri Lanka

Abstract

Background: In the ever-changing business landscape, the concepts of business model (BM) and business model innovation (BMI) have garnered significant focus from both industry and academia. In tough and high-pressure situations, mindfulness is significantly important. Aims: The study aims to examine how managerial mindful behaviours could lead to the adoption of BM tools to support Small and Medium Enterprises’ (SMEs) survival and sustain continued growth. Design: The study utilised a quantitative approach. A nonprobability judgmental sampling technique was used to select owners/managers of SMEs (416) in the manufacturing sector in Colombo District. The partial least squares structural equation modelling (PLS-SEM) technique was used to test the hypotheses. Findings: The result confirms that mindful management shows greater success in value creation, value delivery and value capture of the business. Moreover, the study emphasised the mediating effect of BMI on the relationship between managerial mindfulness and survival and sustained growth of SMEs. Originality: Backed by previous works, this study provides a first attempt to develop a hypothesised model connecting managerial mindfulness, BMI and SMEs survival and growth. The study used a novel method to measure managerial mindfulness as a collective-level construct and extended the concept of managerial mindfulness as a collective psychological state from large-sized enterprises to SMEs. Implications: The study provides a guide for SMEs on the drivers of BMI, as an affordable strategy for survival and sustaining continued growth in a developing economy.