Business model innovation in small and medium-sized enterprises within university-led cluster initiatives in Bolivia

To engage SMEs in innovation could be important to economic growth in Bolivia, it is challenging to develop and achieve business model innovation due to several factors like inability to establish clear demands for technology, limited access to technological resources, insufficiently educated and trained human resources, and a lack of scientific and technological support. Also, the country's technological capabilities, market access, management assistance and other related factors play significant roles in hindering its innovation progress.

This licentiate thesis seeks to explore and advance understanding of how SMEs innovate their business models in a lower middle-income country like Bolivia through participation in university-led cluster initiatives.
To achieve the research objectives, a literature review and explorative qualitative research methodology were employed, through case studies and interviews for data collection. Empirical data was collected from the perspective of SMEs’ owners/managers, who receive external support, to examine how tailored support mechanisms can enhance SMEs business models.

Based on the literature review, it was found that universities can influence insights from a diverse range of research studies to support BMI in SMEs, by structuring and designing different support activities. This can be achieved through: Facilitating knowledge or technology transfer from universities, exploring networks of relationships between universities and SMEs, SMEs seeking support to effectively manage and address problems, and the government or other institution incentivize the relationship. Each contributes to BMI by enhancing value creation, value delivery, and/or value capture.

Furthermore, when examining how cluster initiatives currently impact the business model innovation of SMEs in Bolivia, the analysis revealed that university support predominantly concentrated on the development of value creation, such as technical solutions and laboratory resources, while less emphasis was placed on the dimensions of value delivery and capture. In this context the focus is on technology transfer and capacity-building; however, there is a need for more comprehensive support in value delivery and capture dimensions.

Additionally, successful cases of SME business model innovation in this context, have innovated their business models in two principal ways: following a technology-driven BMI pattern, with a circular approach and technology
and product development and/or innovated with a market-driven pattern, with market focusing and customer understanding and expanding customer access. Macroeconomic factors supports good access to natural resources and reliance on the informal part of the economy. In the successful cases, we found adherence to
regulations and use of higher education resources as important factors for the SMEs’ enhancement of their value creation and capture processes through continuous business model innovation.

In conclusion, this thesis elucidates the complex interplay between various stakeholders and factors influencing BMI in Bolivian SMEs. By leveraging support activities in collaborative university and other partnerships, SMEs can navigate challenges and capitalize on opportunities to drive business model innovation.