BUSINESS MODEL INNOVATION AND MARKETING PERFORMANCE OF FOOD AND BEVERAGE SMES IN RIVERS STATE

Abstract

This study explored business model innovation and marketing performance of food and beverage SMEs in Rivers State. The aim of the study was to determine the relationship between business model innovation (digital business model innovation and sustainable business model innovation) and marketing performance (sales growth and market share growth) of food and beverage SMEs in Rivers State. Four (4) research questions and hypotheses were postulated to guide the study. The study employed the positivist research philosophy and correlational research design. The population of this study consisted of all the 139 registered food and beverage SMEs in Rivers State. The purposive sampling technique was used to select 83 food and beverage SMEs that have innovated their business model digitally or sustainably. The sampling unit was made up of entrepreneurs of the selected food and beverage SMEs in Rivers State. A structured questionnaire was used to elicit data from the respondents. The data collected were analyzed using a combination of descriptive and inferential statistical tools.The Spearman Rank Order Correlation Coefficient (rho) and the SPSS version 27.0 were used to test the hypotheses. The findings revealed that digital business model innovation has a significant relationship with sales growth of food and beverage SMEs. The study also found a significant relationship between digital business model innovation and market share growth of food and beverage SMEs. The study equally reported that a significant relationship between sustainable business model innovation and sales growth of food and beverage SMEs. The study also found a significant relationship between sustainable business model innovation and market share growth of food and beverage SMEs. Based on these findings, it was concluded that business model innovation such as digital and sustainable business model innovations significantly enhance marketing performance of food and beverage SMEs in Rivers State. Hence, it is recommended that food and beverage SMEs in Rivers State particularly those that are experiencing poor marketing performance should innovate their business model as it would improve their marketing performance.