The Impact of Innovation and Entrepreneurship on New Business Models in the Digital Economy

Abstract

Digitization has changed the structure of modern business and spawned new forms of business models in the digital economy. This work brushes over the contribution of innovation and entrepreneurship to the development and formation of nascent business models in the digitized economy. More specifically, the research aims to investigate entrepreneurial innovations and the impact of organizational restructuring, value creation, and sustainable competitive advantage on customers. Qualitative multiple-case research methodology with an interpretive research framework was designed for this study. Research interviewers consisted of entrepreneurs, innovation managers, and digital transformation leaders within organizations that have experienced dramatic digital impacts. To consolidate and augment the research, secondary resources, including company reports, digital communications, and publications in the digital economy, were utilized. Data were collected and then subjected to thematic research to determine and inform a strategic position and business context. Study findings indicate that innovation continues to reshape value, promotes digital economy paradigm operations, and transforms value chains while enhancing a broad data-based collaborative digital ecosystem. Importantly, this study found that sustaining innovative business models requires organizational flexibility. This research has also established that successful entrepreneurship in the digital economy requires digital innovations and focused business models.