How managerial ties support sustainable business model innovation: the role of absorptive capacity and strategic flexibility

Abstract

Purpose The research on sustainable business model innovation (SBMI) has seen a surge over the years. However, despite the surge, the literature on the antecedents of SBMI is still at a budding stage. Therefore, the purpose of this paper is to expand the literature on SBMI by investigating the influence of managerial ties on SBMI. Design/methodology/approach Data were collected from 200 SMEs in Saudi Arabia to test the conceptual model, which was analysed using structural equation modelling. Findings The findings highlighted the significance of managerial ties in promoting SBMI. Furthermore, the findings highlighted that managerial ties might not optimally result in SBMI uncles channelized through absorptive capacity. However, the findings could not confirm the moderating role of strategic flexibility. Practical implications The findings from this study have implications for SME owners, recommending that these firms develop managerial ties and absorptive capacities to realize the benefits of SBMI. Originality/value To the best of the authors’ knowledge, this study is one of the first to highlight the significance of managerial ties in promoting SBMI from an emerging market perspective.