The Performance of Active Businesses in an Emerging Economy: The Role of Entrepreneurial Approach, Strategic Flexibility, and Business Model Innovation

This research aimed to investigate the role of entrepreneurial orientation (EO), strategic flexibility (SF), and business model innovation (BMI) in the performance of small and medium-sized enterprises (SMEs) through the mediating variable of sustainable competitive advantage (SCA). The study was applied in terms of objective and descriptive-survey in terms of nature. A number of SMEs in Tehran province were selected as the statistical population. The sample size was calculated using G-Power software as 244 people. In this regard, 185 responses were collected from participants through an online survey and a simple random sampling method. Data analysis was carried out through Smart PLS 3. The findings revealed that EO, BMI, and SF enhanced the performance of SMEs. The present research extends the management literature by filling research gaps. Nowadays, companies need to change their obsolete strategies to be capable of understanding and meeting customer preferences faster and more competitively than other competitors in a highly competitive arena. Adopting EO, SF, and BMI improves the performance of SMEs and at the same time assists managers in improving the performance of their businesses in dynamic environments.