The impact of entrepreneurial passion on business model innovation on Turkish SMEs

Abstract

Despite the increased focus on business model innovation in recent years, there are still major gaps in existing literature about the causes of innovation. Therefore, this study examines various factors impacting business model innovation. Researchers have highlighted that entrepreneurial passion and business model innovation are key entrepreneurship areas. This study investigates the impact of entrepreneurial passion on business model innovation through the moderating effects of curiosity and the mediating effects of entrepreneurial learning. The current study employed PLS-SEM analysis using SmartPLS 4 (SmartPLS GmbH, Germany) under a valid academic license to test the study hypotheses from 400 business owners of manufacturing small and medium enterprises (SMEs) in Istanbul, Turkey. This study revealed that entrepreneurial passion and business model innovation are significantly associated. Besides, the moderating role of curiosity and the mediating role of entrepreneurial learning were significant. This study has significant practical implications for entrepreneurs and business managers to develop business model innovation with essential management consequences. Since curiosity boosts an entrepreneur’s passion to learn and hone their entrepreneurial skills, entrepreneurs should be interested in learning new knowledge. According to this study, fostering an entrepreneurial passion is crucial to the growth of new SMEs. Therefore, entrepreneurship education should inspire entrepreneurs to be innovative and energetic. Workshops and seminars are great opportunities for business owners to gain knowledge and quickly generate new ideas. Finally, this study opens new areas of research for future researchers.

PUBLIC INTEREST STATEMENT

Entrepreneurship has emerged as a crucial business element, and entrepreneurs significantly contribute to establishing new businesses during the growth phase. Technology-related startups demand novelty for expanding in the market. So, if entrepreneurs want such startups to grow and compete in the cutthroat market, they should focus on business model innovation as a critical strategy. Entrepreneurs can efficiently make business model innovation seamless if they have enough entrepreneurial passion and learning. If entrepreneurs have curiosity, they can find novel opportunities in the market. If business owners want to turn their original concepts into reality, they must prioritise different factors to implement business model innovation in their organisations. Considering this, the present study emphasises the impact of all these factors on business model innovation.

Keywords:

• Business model innovation
• entrepreneurial learning
• entrepreneurial passion
• curiosity
• PLS-SEM 4
• Istanbul
• Turkey

REVIEWING EDITOR:

• Eric Liguori, Florida State University, Tallahassee, USA

JEL Classification:

• L26
• M13
• O31

1. Introduction

In Turkey, calls for innovation and entrepreneurship have motivated the launch of numerous new businesses in the modern era. Most of these are related to updated technology. Although these high-tech businesses have relatively simple startup stages, it is far more difficult for them to endure and grow (Costa et al., 2018). Initially, new startup companies should continue to innovate to expand, grow, and survive because they are typically vulnerable to the responsibility of newness, going through periods of lack of resources, lack of legitimacy, and slack (Su et al., 2022). As a result, business model innovation emerges as a novel and crucial strategy that helps startups succeed in the long run by enabling them to survive.

In the modern business world, entrepreneurship has become an important economic factor (Flores Pérez & Guevara, 2023). It is considered a ‘key catalyst’ for the global economic growth of all countries (Morris et al., 2013; Syed et al., 2020). Baron and Hmieleski (2018) claim that entrepreneurs substantially contribute to creating new enterprises during a company’s growth phase. According to Ahsan et al. (2023), several new businesses have been established in Turkey due to the awareness and increased significance of entrepreneurship and innovation. Technology-related startups make up the majority of new businesses. Technology-related firms are simple for entrepreneurs to launch, but expanding and enduring in the marketplace is difficult (Luu, 2023). According to Knockaert et al. (2015), this issue has many causes, including the lack of resources, legitimacy, dealing with lean periods, lack of entrepreneurial passion, and the demand for novelty. Foss and Saebi (2017) said that business model innovation is now a critical strategy for startups looking to grow and endure in a cutthroat market. Focusing on creative business strategy has helped several startup companies succeed. Alipay and Mobike are two examples of unique business models that have thrived thanks to their aggressive and creative business strategies (Ferreira-Neto et al., 2023). According to Chen and Liu (2023), long-term goals must be achieved in firm starts. However, information on the new trend of business model innovation is still lacking. Snihur and Zott (2019) also contend that research on business model innovation is still scarce.

Entrepreneurs play a crucial role in the early stages of business startup development (Martins et al., 2015). According to the knowledge-based view (KBV), entrepreneurs can make business model innovation seamless if they have enough entrepreneurial passion and learning (Chen & Liu, 2023). Mueller et al. (2017) highlight that passionate entrepreneurs lead to more successful business model innovation. Entrepreneurial passion refers to individuals’ strengths and conscious emotions toward various entrepreneurial responsibilities and activities. According to Biraglia and Kadile (2017), one of the topics in the entrepreneurship process that is frequently addressed and contributes to entrepreneurs’ success is their entrepreneurial passion.

Additionally, Zhu et al. (2023) state that the passion for starting a business distinguishes entrepreneurs from non-entrepreneurs. Tang et al. (2012) said that passionate entrepreneurs look for fresh chances and information that can benefit them in achieving their long-term objectives. The passion for entrepreneurship requires these capacities and aptitudes for information gathering and opportunity scanning. Zhao et al. (2021) said that it helps business owners identify the strategies leading to business model innovation. Consequently, scholars consider entrepreneurial passion the major element promoting business model innovation (Adomako et al., 2023).

According to the knowledge-based view, entrepreneurial passion helps business owners identify prospective opportunities through enthusiasm (Snihur & Zott, 2019). However, they lack experience in turning these potential prospects for value generation into reality. It implies that not all company owners are strongly committed to creating innovative business models (Dheer & Castrogiovanni, 2023). The framework of entrepreneurial passion and innovative business models are examined in this study. The intention model states that perceptions come from attainable and attractive possibilities (Zhao et al., 2021). It suggests that business owners might succeed in their quest for business model innovation by looking into realistic and attractive opportunities (Schwarte et al., 2023). When entrepreneurs have acquired entrepreneurial learning, their decisions can be realistic and attractive. In accordance with the resource-based view, entrepreneurial learning is crucial to making possible choices and possibilities (Lu et al., 2023). By expanding the knowledge base, entrepreneurial learning enhances the entrepreneurs’ perceptions that their decisions and actions are possible (Zhao et al., 2021). Business owners are, therefore, better prepared to handle business launches. As a result, in this study, the connection between business model innovation and entrepreneurial passion is mediated by entrepreneurial learning.

Additionally, curiosity is one of the most significant elements influencing an entrepreneur’s behaviour (Chiengkul et al., 2023). Curious entrepreneurs strongly desire to find novel and difficult possibilities and methods. They strive to master new approaches to assist in innovating their business ventures. According to Zhao and Liu (2023), curiosity mixed with entrepreneurial passion enhances entrepreneurial learning. According to this study, curiosity strengthens the relationship between entrepreneurial passion and entrepreneurial learning. This study examines curiosity, which is still under investigation in entrepreneurship, to fill this research gap and explore this important component. This study aims to investigate the effect of entrepreneurial passion on business model innovation through the moderating effects of curiosity and the mediating effects of entrepreneurial learning.

Moreover, this study contributes by providing important recommendations for managers and founders of SMEs on successfully innovating their present or new business models. Entrepreneurs can successfully achieve their objectives in SMEs if they concentrate on the study’s factors of business model innovation (Lu et al., 2023). According to this study, business owners should assess their surroundings and commit to implementing the business model innovation. According to the knowledge-based view, they should concentrate on acquiring the knowledge and skills required to put their original concepts into practice (Flores Pérez & Guevara, 2023). They can accomplish their objective of business model innovation if they use an efficient entrepreneurial learning strategy.

2. Theoretical support

2.1. Business model innovation

The business model expands the consumer value proposition through data, statistics, and reason (Teece, 2010). For businesses with high levels of client value, it generates a structure of revenues and costs (Ahsan et al., 2023). The researchers explain how businesses make money. The business model comprises three components: content, structure, and governance (Morris et al., 2013). The process of directing actions and transactions based on control concerns is known as governance (Snihur & Zott, 2019). The structure reveals the relationships between the various activities. The activities of the system are considered content. Therefore, the core components of business model innovation are creatively connecting activities, managing transactions, and introducing more activities through new partners or innovative techniques (Chen & Liu, 2023).

According to researchers, business model innovation has been a hot issue of discussion at this time (Trimi & Berbegal-Mirabent, 2012). It signifies value creation and aids entrepreneurs in increasing their chances of success. The investigation of entrepreneurs’ success in business model innovation has emerged as a crucial area of study, as highlighted by Ahsan et al. (2023). On the other hand, few researchers have assessed business model innovation factors (Chen & Liu, 2023). Several researchers look at managers’ analogical reasoning, entrepreneurs’ innovation, and entrepreneurs’ behaviour and thought processes (Svejenova et al., 2010). However, Amit and Zott (2015) claim that these studies lack quantitative analysis and interpretation of business model innovation.

2.2. Intentions model

The intentions model was introduced by Krueger et al. (2000) to examine how business model innovation might be successful for entrepreneurs. It offers a framework for comprehending entrepreneurial actions. It helps in the investigation of entrepreneurs’ cognitive behaviour. According to Krueger (2017), entrepreneurs’ feasibility and desirability judgments are the foundation of the intentions model, influencing their behaviours and intentions. According to Douglas (2017), the benefit expected from entrepreneurship outcomes can be weighed when determining an entrepreneur’s desirability. Entrepreneurs who believe they can successfully perform their duties are said to be feasible (Zhu et al., 2023).

The research suggests that entrepreneurs’ cognition influences their goals and actions. An important aspect of entrepreneurs’ thinking influencing their entrepreneurial activity is their passion (Adomako et al., 2023). The ability of entrepreneurs to evaluate many possible prospects that others have overlooked is known as entrepreneurial passion (Dheer & Castrogiovanni, 2023). This paradigm has three characteristics: appraisal, association, and scanning (Tang et al., 2012). A person with an entrepreneurial passion might look for novel ways to address business issues and seize untapped business prospects. Researchers in the past have concentrated on the elements of entrepreneurial innovation, including Ma and Huang (2016). However, just a few academics have looked at how entrepreneurship passion can affect the results of firm starts (Schwarte et al., 2023).

Additionally, entrepreneurial passion enables business owners to recognise market cues and take advantage of additional chances (Lu et al., 2023). Chen and Liu (2023) state that business owners can create value and achieve long-term goals if they seize these chances. Entrepreneurs assess and believe that entrepreneurial activity is possible and attainable depending on the different chances detected by entrepreneurial passion (Zhao et al., 2021). If entrepreneurs think this activity is feasible, they will engage in it.

2.3. Knowledge-based view

The knowledge-based view focuses on the major contribution of knowledge in discovering substantial opportunities (Adomako et al., 2023). Spender (1996) asserts that information can be used to create value and obtain a competitive edge. According to Foss et al. (2013), it suggests new revenue opportunities. According to Ferreira-Neto et al. (2023), this theory holds that innovation integrates multiple types of knowledge to produce breakthroughs. The capability and scope of the company’s existing knowledge, according to Zhou and Li (2012), are constrained when it comes to understanding and using new knowledge to be innovative. Therefore, acquiring information is crucial to achieving innovation.

Additionally, business founders use a method to learn through entrepreneurial learning (Schwarte et al., 2023). It is a useful tactic for acquiring an advantage over competitors. Throughout their professional careers, people acquire entrepreneurial skills to enhance their managerial efficiency for recently founded organisations (Chen & Liu, 2023). Learning, in the opinion of Wang and Chugh (2014), enables business owners to refresh and expand their knowledge. Business owners use the basics of entrepreneurial learning when they look for new opportunities to create or run existing businesses (Zhu et al., 2023).

2.4. Hypotheses development

In this study, the following hypotheses are proposed in light of prior research and theories:

2.4.1. Entrepreneurial passion and business model innovation

Newman et al. (2021) said that scholarly research on passion has grown significantly in recent years, coinciding with its increasing popularity. Numerous academic disciplines have conducted research demonstrating entrepreneurial passion’s significant impact on an individual’s thoughts, actions, and motivation. Researchers are starting to examine the personal and contextual factors that relate to entrepreneurial passion and the significant role that entrepreneurial passion plays in the creation and growth of entrepreneurial ventures, given the significance of entrepreneurial activity to social and economic development (Newman et al., 2021).

Business owners with high entrepreneurial passion can better recognise, investigate, and assess important market data (Tang et al., 2012). Through these procedures, SMEs can meet customer demands, environmental restrictions, and new operations (Newman et al., 2021). These components benefit emerging businesses in spotting possibilities, establishing new rules, and connecting various activities (Zhu et al., 2023). They thus contribute to the success of business model innovation.

According to the intentions model, entrepreneurial passion benefits small business owners and managers in many ways; gathering market data, which is the first task in achieving business model innovation, first assists in identifying and meeting the customer’s needs (Chen & Liu, 2023). Business owners encounter challenges to better understand and meet customer needs. Ferreira-Neto et al. (2023) state that entrepreneurial passion improves a person’s willingness to add value by meeting client requests. Entrepreneurs should take on novel duties, manage projects, and collaborate on initiatives to develop business model innovation (Dheer & Castrogiovanni, 2023). Second, entrepreneurial passion enables business owners to combine diverse knowledge to study new market activities creatively (Amato et al., 2017). It can assist business owners in developing novel business models. Numerous pieces of information are combined and logically put together by the relationship. Tang et al. (2012) said entrepreneurs launch businesses and find new markets by fusing unrelated data. For instance, Zott et al. (2011) stated that developments in the internet have decreased communication costs and later emerging efforts on it have introduced new ways and concepts for value creation. The intentions model states that passionate business owners create channels of communication that encourage the development of innovative business ideas and incorporate information technology into their day-to-day activities (Flores Pérez & Guevara, 2023).

Third, Amit and Zott (2015) claimed that entrepreneurial passion helps business owners understand environmental limits, which provide a major obstacle to innovation. The efficiency of a business model is evaluated by how well it incorporates industry, technological, and legal standards (Ahsan et al., 2023). External forces impact the innovative options, viability, and acceptability of business model innovation. Passionate business owners may explore these limits and combine the relationship with prior research (Costa et al., 2018). They find that restrictions can give business owners better chances to adopt novel transaction formats. Environmental constraints can, therefore, be viewed as a major challenge and a source of help for entrepreneurs as they develop their company ideas. The following hypothesis is suggested based on the prior discussion and the intentions model:

H1: Entrepreneurial passion positively affects business model innovation.

2.4.2. Entrepreneurial passion and entrepreneurial learning

Cardon et al. (2013) claim that entrepreneurship is fundamentally driven by passion, as it can stimulate creativity and identify novel patterns in information essential for identifying and seizing promising chances. With the unpredictability of new product and service launches and the difficulties of creating new organisations with little funding, passion can significantly motivate entrepreneurial activity (Costa et al., 2018).

Costa et al. (2018) said that it is crucial to comprehend how behavioural and cognitive factors affect these procedures because entrepreneurs are crucial to developing new businesses. Therefore, it is crucial to consider behavioural and cognition formation when examining the intricate process of entrepreneurship (Adomako et al., 2023). In accordance with the knowledge-based view, cognitive framework and creativity were linked to opportunity detection and exploitation (Chen & Liu, 2023). The learning role in entrepreneurship was then examined using the entrepreneurial learning theory (Zhu et al., 2023). Learning processes are impacted by opportunity identification and utilisation. According to the knowledge-based view, entrepreneurs apply their knowledge to discover substantial opportunities (Luu, 2023).

Researchers have investigated the relationship between cognition, knowledge, and creativity and how different learning styles among entrepreneurs can encourage entrepreneurship (Ferreira-Neto et al., 2023). Jabarullah and Hussain (2019) assert that knowing the entrepreneurship process can help entrepreneurs find chances and grow passionately.

Entrepreneurial learning and passion correlate positively (Bonneville-Roussy et al., 2013). Su et al. (2022) argued that more driven business owners learn more effectively, encouraging entrepreneurship. The learning outcomes of entrepreneurs are emotional and concrete because they connect to entrepreneurial behaviours, attitudes, and experiences (Nobanee & Dilshad, 2020). Although emotional traits show changes due to entrepreneurial learning, some psychological traits impact people’s entrepreneurial goals (Adomako et al., 2023). Emotion is one of the most important learning components, according to Somjai and Sangperm (2019); hence, learning and emotion both foster entrepreneurship. A high level of dedication, a lack of control, uncertainty, excitement, and fear are all present during the entrepreneurial process (Dheer & Castrogiovanni, 2023).

Researchers discovered that the cognitive component was mostly ignored by researchers (Lackéus, 2012). Various connotations, such as passion and cognition, as well as emotions, behaviours, and thoughts, have all been conveyed by this concept. The words ‘fun’, ‘excitement’, and ‘passion’ refer to feelings that support the growth of an SME (Schwarte et al., 2023). The venture’s growth and survival are due to the type and degree of emotional involvement.

Emotional perspectives are required to create new insights into entrepreneurship (Chen & Liu, 2023). Emotional exposure is necessary to create an environment that supports successful learning. Gondim and Mutti (2011) assert that a learning environment that generates a circumstance where students must accomplish tasks will promote emotions. Entrepreneurial learning inspires entrepreneurial intentions and attitudes (Schwarte et al., 2023). Thus, according to Sriyakul and Jermsittiparsert (2019), entrepreneurial passion encourages people to study about starting their businesses. Jabarullah and Hussain (2019) focus on the association between entrepreneurial learning and entrepreneurial passion, drawing on the self-determination theory. Entrepreneurial learning and passion are favourably connected. In light of these arguments and knowledge-based view, this hypothesis is postulated:

H2: Entrepreneurial learning and entrepreneurial passion are positively associated.

2.4.3. The mediating impact of entrepreneurial learning

Entrepreneurial passion helps business owners explore various opportunities for accomplishment in business model innovation based on the knowledge-based view (Krueger, 2017). Chen and Liu (2023) assert that examining the connection between entrepreneurial passion and business model innovation is critical. This association has stronger support from the intentions model (Adomako et al., 2023). According to the intentions model, business owners make decisions and have intentions based on their expectations of achievable and desired results (Luu, 2023). Whether or not one chooses to act a certain way relies on how appealing the opportunity is to the individual. According to Douglas (2017), those wanting to start their business wait until it is feasible before taking action. By combining attractiveness and practicality, entrepreneurs can develop innovative business models (Dheer & Castrogiovanni, 2023). Different approaches to achieving desired business model innovation are provided by entrepreneurial passion (Flores Pérez & Guevara, 2023). Owners of businesses should, however, take suitable actions to regard these tactics as viable. Therefore, Ahsan et al. (2023) state that the method used by business owners to evaluate the likelihood of success of several potential strategies serves as a connection between entrepreneurial passion and business model innovation.

According to the knowledge-based view, entrepreneurial learning is a significant mediator (Ferreira-Neto et al., 2023). To boost their viability, entrepreneurs should acquire the skills required to shape the future (Adomako et al., 2023). Entrepreneurship learning assists owners in acquiring the required information and enhancing their capability to take necessary actions (Ahsan et al., 2023). KBV emphasises that an SME’s primary responsibilities involve identifying, integrating, and implementing knowledge (Schwarte et al., 2023). The SME’s learning base can encourage innovation and assist business owners in managing the future. Entrepreneurs can gain new knowledge through entrepreneurial learning, which could give them the power to change circumstances in the future (Schwarte et al., 2023). They learn new activities, forms of governance, and connecting structures as a result of acquiring knowledge and transforming it into their capacities. According to Zhao et al. (2021), these elements promote the business model innovation.

According to Dheer and Castrogiovanni (2023), entrepreneurial learning gives individuals the requisite information and abilities to transform ideas into tangible outcomes. Additionally, entrepreneurial passion encompasses a range of strategies that facilitate business model innovation, drawing from the knowledge-based view. After integrating these different components, business owners will succeed in business model innovation (Dheer & Castrogiovanni, 2023). Drawing on the intentions model, entrepreneurial learning is the mediator between entrepreneurial passion and business model innovation, giving rise to the subsequent hypothesis:

H3: The association between entrepreneurial passion and business model innovation is mediated by entrepreneurial learning.

2.4.4. The moderating impact of curiosity

Curiosity is one of the major forces affecting people’s attitudes and behaviours (Luu, 2023). Curiosity can be defined as the passion for examining and recognising dangerous, difficult, and unexpected situations (Schwarte et al., 2023). According to the knowledge-based view, curious entrepreneurs apply their learning to tap new business opportunities (Adomako et al., 2023). Entrepreneurs have a curiosity for discovering new concepts and business prospects. Luu (2023) claims that curious managers and entrepreneurs have a stronger association between their curiosity and entrepreneurial learning. Curiosity can motivate businesses to concentrate on their objectives and learn about their sector. This is in line with the self-regulatory theory. Since curiosity necessitates accurate integration and information across several fields and degrees, it fosters creativity in entrepreneurs (Peljko et al., 2016). The self-regulatory theory claims that curiosity has a beneficial effect (Kashdan et al., 2018). Numerous researchers have analysed the connection between entrepreneurial passion, curiosity, and entrepreneurial learning (Chen & Liu, 2023).

Scholars highlighted that persistent businesspeople could overcome the toughest challenges (Dheer & Castrogiovanni, 2023). Jabarullah and Hussain (2019) claim that the self-regulatory theory postulates that curiosity catalyses determination, action orientation, and energy allocation towards attaining certain objectives. Therefore, curiosity serves as a driving force for an entrepreneur’s inclination and concentration towards their particular goals. According to Liu et al. (2017), curiosity strengthens the correlation between entrepreneurial learning and entrepreneurial passion. In light of the data, the below hypothesis is put forth based on self-regulatory theory and the knowledge-based view:

H4: Curiosity acts as a moderator in the association between entrepreneurial passion and entrepreneurial learning.

2.5. Conceptual model

This study uses the knowledge-based view, intentions model, and self-regulatory theory to analyse entrepreneurial passion’s significant effects on business model innovation. The conceptual framework for this investigation is displayed in Figure 1.

Figure 1. Conceptual model.

3. Methodology

This study is cross-sectional in nature. Cross-sectional studies have the advantage of being quickly conducted by researchers and often costing less than other study designs (Bougie & Sekaran, 2019). The data were gathered from the business owners of manufacturing enterprises in Istanbul, Turkey. Istanbul is the most developed city in Turkey in terms of SMEs and business development. The government of Turkey has started new business development projects to establish Istanbul further. Henceforth, new SMEs have been set up in this city, providing the relevant context to investigate the factors affecting business model innovation.

Furthermore, convenience sampling was applied to gather data from 550 SMEs in Istanbul, Turkey. Compared to other sampling techniques, convenience sampling is a straightforward and easy way to obtain data (Bougie & Sekaran, 2019). Data were gathered from owners of SMEs who were easy to approach. Most respondents agreed to participate in the research survey, while others were busy with official meetings. A total of 400 survey questionnaires were received from the respondents, with a response rate of 72.72%. The t-test was conducted to examine the data for ‘non-response bias’ (Hair et al., 2020). There was no non-response bias because of the insignificant results of demographic variables. Besides, statistical and procedural approaches were used to reduce common method bias in the data. Harman’s one-factor test was conducted to examine common method bias in the data. The results showed that the total variance was 26.31%, well below the maximum threshold of 50%, according to Hair et al. (2020), approving that there is no issue of common method bias in the gathered data.

3.1. Demographics of the study

Table 1 indicates the descriptive statistics and demographic analysis of the study. 62.25% of respondents in the survey research were males, and 37.75% were females. The respondents were aged 20–30 years (10.25%), 31–40 years (32.75%), 41–50 years (50%), and above 50 years (7%). The qualification rate of the respondents was high school (11.25%), bachelor’s (25.25%), master’s (50.75%), and doctorate (2.75%). Most SMEs existed for 5–8 years (50.75%), 28% existed for 0–4 years, and 21.25% existed for more than 8 years.

Table 1. Demographics of the study.

Demographics	Frequencies	Percentage	Mean	Standard Deviation	Skewness	Kurtosis
Gender
Male	249	62.25%	1.56	0.376	0.463	−1.456
Female	151	37.75%
Age
20–30 years	41	10.25%	2.76	0.765	−0.389	−0.472
31–40 years	131	32.75%
41–50 years	200	50%
Above 50 years	28	7%
Qualification
High School	45	11.25%	2.78	0.685	−0.438	−0.418
Bachelors	101	25.25%
Masters	203	50.75%
Doctorate	51	2.75%
SME’s age
0–4 years	112	28%	1.87	0.553	−0.875	−0.852
5–8 years	203	50.75%
Above 8 years	85	21.25%

3.2. Measurement of variables

All the measures for entrepreneurial learning, curiosity, business model innovation, and entrepreneurial passion were adapted from past studies. A 5-point Likert scale was adopted, ranging from strongly disagree (1) to strongly agree (5).

3.2.1. Business model innovation

Business model innovation was measured using an 8-item scale given by Zott and Amit (2007). The sample items include “The business model provides access to several participants and an unprecedented variety.” The Cronbach’s Alpha value was 0.939.

3.2.2. Entrepreneurial passion

Entrepreneurial passion was measured using a 5-item scale given by Li et al. (2020). The sample item includes “I find great passion in conducting a thorough analysis of the surrounding environment to identify novel and consequential prospects.” The Cronbach’s Alpha value was 0.923.

3.2.3. Entrepreneurial learning

Entrepreneurial learning was measured using a 5-item scale given by Atuahene-Gima and Murray (2007). The sample item includes “The new ideas within the unknown field should always be tested.” The Cronbach’s Alpha value was 0.954.

3.2.4. Curiosity

Curiosity was measured using a 6-item scale given by Kashdan et al. (2009). The sample item includes “I frequently seek out opportunities to challenge me and grow as a better person.” The value of Cronbach’s Alpha was 0.943.

4. Results

This study employed PLS-SEM version 4 under a valid academic license to test the study hypotheses. The biggest benefit of using PLS-SEM is that it has strict assumptions to provide accurate results and avoid uncertainty. Besides, it is not impacted by the sample size.

4.1. Measurement model

Average variance extracted, Cronbach’s Alpha, factor loadings, and composite reliability were used to test the measurement model (Figure 2). In Table 2, all the factor loading values exceeded 0.70, as mentioned by Hair et al. (2020). AVE values exceeded 0.50, Cronbach’s Alpha values exceeded 0.70, and composite reliability values exceeded 0.80 (Sarstedt et al., 2014) as in Table 3. The discriminant validity was checked through HTMT and Fornell and Larcker (1981) criteria. All the HTMT values were less than 0.85, as Roemer et al. (2021) suggested. The highest HTMT value was 0.376, well below the threshold of 0.85. Tables 4 and 5 indicate the results.

Figure 2. Measurement model.

Table 2. Factor loadings.

Variables	BUMI	CURI	ENPLE	ENPPA
BUMI1	0.856	0.000	0.000	0.000
BUMI2	0.927	0.000	0.000	0.000
BUMI3	0.869	0.000	0.000	0.000
BUMI4	0.873	0.000	0.000	0.000
BUMI5	0.895	0.000	0.000	0.000
BUMI6	0.858	0.000	0.000	0.000
BUMI7	0.877	0.000	0.000	0.000
BUMI8	0.923	0.000	0.000	0.000
CURI1	0.000	0.789	0.000	0.000
CURI2	0.000	0.845	0.000	0.000
CURI3	0.000	0.939	0.000	0.000
CURI4	0.000	0.917	0.000	0.000
CURI5	0.000	0.895	0.000	0.000
CURI6	0.000	0.952	0.000	0.000
ENPLE 1	0.000	0.000	0.867	0.000
ENPLE2	0.000	0.000	0.849	0.000
ENPLE3	0.000	0.000	0.962	0.000
ENPLE4	0.000	0.000	0.851	0.000
ENPLE5	0.000	0.000	0.924	0.000
ENPPA1	0.000	0.000	0.000	0.927
ENPPA2	0.000	0.000	0.000	0.941
ENPPA3	0.000	0.000	0.000	0.918
ENPPA4	0.000	0.000	0.000	0.920
ENPPA5	0.000	0.000	0.000	0.893

Note: ENPLE = entrepreneurial learning, CURI = curiosity, ENPPA = entrepreneurial passion, BUMI = business model innovation.

Table 3. Validity and reliability of constructs.

Variables	Cronbach’s alpha	Composite reliability	Average variance extracted	VIF
Business model innovation	0.939	0.927	0.642	–
Curiosity	0.943	0.952	0.612	1.011
Entrepreneurial learning	0.954	0.962	0.729	1.102
Entrepreneurial passion	0.923	0.947	0.756	1.101

Table 4. Discriminant validity as per Fornell-Larcker’s criterion.

Variables	Business model innovation	Curiosity	Entrepreneurial learning	Entrepreneurial passion
Business model innovation	0.861
Curiosity	0.376	0.859
Entrepreneurial learning	0.529	0.321	0.899
Entrepreneurial passion	0.591	0.316	0.308	0.901

Table 5. Discriminant validity as per HTMT Criterion.

Variables	Business model innovation	Curiosity	Entrepreneurial learning	Entrepreneurial passion
Business model innovation	0.000	0.000	0.000	0.000
Curiosity	0.087	0.000	0.000	0.000
Entrepreneurial learning	0.312	0.187	0.000	0.000
Entrepreneurial passion	0.376	0.086	0.317	0.000

4.2. Structural model

SRMR and the coefficient of determination (R²) were employed to assess the structural model results (Figure 3). The R² values indicate the model fitness. The highest R² level is 0.26, the medium level is 0.13, and the small level is 0.02 (Chin, 1998). As Table 6 shows, the R² value of business model innovation was 0.267, the highest level, and the R² of entrepreneurial learning was 0.219, which is the medium level. Further, the SRMR of the structural model was 0.039, according to the criteria (Hair et al., 2013).

Figure 3. Structural model.

Table 6. R² and model fitness.

Variables	R^2	R^2-Adjusted	SRMR
Business model innovation	0.267	0.254	0.039
Entrepreneurial learning	0.219	0.207

4.3. Hypotheses testing

Smart-PLS software (version 4) was employed to test the study hypotheses using 500 bootstraps. All the results were significant. In Table 7, the findings of H1 show that business model innovation and entrepreneurial passion are positively associated (βeta = 0.236, t = 4.563, p < 0.000); the findings of H2 indicate that entrepreneurial learning and entrepreneurial passion are positively associated (βeta = 0.316, t = 5.439, p < 0.000); the findings of H3 indicate that the association between business model innovation and entrepreneurial passion is positively mediated by entrepreneurial learning (βeta = 0.428, t = 7.452, p < 0.000); and the findings of H4 indicate that the association between entrepreneurial learning and entrepreneurial passion is moderated by curiosity (βeta = 0.219, t = 4.257, p < 0.000).

Table 7. Testing of study hypotheses.

Hypotheses	Relationships	β	T	p	Results
H1	ENPPA→BUMI	0.236	4.563	0.000	Accepted
H2	ENPPA→ENPLE	0.316	5.439	0.000	Accepted
H3	ENPPA→ENPLE→ BUMI	0.428	7.452	0.000	Accepted
H4	ENPPA→CURI→ ENPLE	0.219	4.257	0.000	Accepted

Note: ENPLE = entrepreneurial learning, CURI = curiosity, ENPPA = entrepreneurial passion, BUMI = business model innovation.

Furthermore, the indirect effects were assessed through VAF to check the full or partial mediation. If VAF exceeds 0.80, it indicates ‘full mediation’. If VAF exceeds 0.20 and less than 0.80, it indicates ‘partial mediation’ (Hair et al., 2012). Table 8 indicates the VAF values (0.38), showing partial mediation. Finally, curiosity was found to have a significant moderation impact.

Table 8. Testing of mediational hypothesis.

Independent study variable	Indirect effects	Direct effects	Total effects	VAF	Mediation
Entrepreneurial passion	0.219	0.321	0.378	0.38	Partial

4.4. Mediation analysis

See Table 8.

4.5. Moderation analysis

Figure 4 shows that the association between entrepreneurial learning and entrepreneurial passion is moderated by curiosity.

Figure 4. Moderation analysis.

5. Discussion

This study investigates the association between entrepreneurial passion and business model innovation by considering the moderating impact of curiosity and the mediating role of entrepreneurial learning, as framed by the knowledge-based view and the intentions model. The detailed analysis of the questionnaire responses sheds light on the underlying mechanisms of these relationships.

The findings for each hypothesis are significant. The study’s conclusions concur with those of previous studies. H1 claims that business model innovation is significantly impacted by entrepreneurial passion. The significant impact of entrepreneurial passion on business model innovation is highlighted by responses indicating that passionate business owners actively explore fresh marketing and innovation alternatives. Tang et al. (2012) noted the importance of customer satisfaction in driving business model innovation. Entrepreneurs who possess a robust sense of purpose contribute to the enhancement of consumer value and foster the emergence of business model innovation. The questionnaire revealed that items measuring an entrepreneur’s dedication and ability to perceive and react to market needs were particularly predictive of innovative outcomes. This suggests that passion’s intensity and quality, focusing on adaptability and customer-centricity, are crucial for innovation. Additionally, Dheer and Castrogiovanni (2023) support the idea that business owners can bring disparate pieces of information together through their passion, enabling them to develop novel strategies for business model innovation. According to Zott et al. (2011), passionate business owners concentrate on cutting communication costs and launching new companies, enabling them to innovate business models successfully. As a result, the current study’s findings are consistent with those of the earlier ones.

Supporting the findings of Jabarullah and Hussain (2019); Bonneville-Roussy et al. (2013), this study finds that entrepreneurial passion significantly influences entrepreneurial learning (H2). The questionnaire items revealing this relationship included measures of an entrepreneur’s commitment to skill development and opportunity recognition. This result supports the significance of this relationship, which has been seen in prior research investigations. Entrepreneurial passion helps business owners recognise new opportunities and develop their skills, encouraging entrepreneurship. Similarly, Bonneville-Roussy et al. (2013) discovered a positive connection between entrepreneurial learning and entrepreneurial passion. They can participate in various learning methodologies thanks to their entrepreneurial passion, which eventually contributes to the development of SMEs. Entrepreneurial learning is a vital cognitive component that earlier academics disregarded, according to Lackéus (2012). However, having a better understanding of business increases an entrepreneur’s enjoyment and excitement. Entrepreneurs with enough passion for their businesses will concentrate on developing their learning skills to encourage innovation in their SMEs. Sriyakul and Jermsittiparsert (2019) assert that entrepreneurial passion is pivotal in enhancing engagement in effective learning methodologies and strategies. The self-determination theory provides empirical evidence for this significant association. Hence, the current study’s findings are consistent with the outcomes reported in prior research.

In line with Krueger (2017), the findings confirm that entrepreneurial learning mediates the relationship between entrepreneurial passion and business model innovation (H3). Responses to items assessing the practical application of learned skills to business strategy were particularly telling. This result aligns with earlier studies that analysed this association as strong and beneficial. Entrepreneurial passion examines various effective techniques for business model innovation. The intentions model provides empirical evidence supporting the significant association between entrepreneurial passion and business model innovation, with entrepreneurial learning mediating this relationship. This viewpoint states that the objectives and path of action must be appealing and realistic. Innovative business concepts can be made by combining viability and desirability. Owners of businesses must be cautious about taking measures that are grounded in reality. From this point on, the connection between innovative business ideas and entrepreneurial passion helps owners of companies and entrepreneurs decide which entrepreneurship tactics are workable. KBV recognises entrepreneurial learning as a mediating variable. Managers and entrepreneurs can successfully innovate business models by honing their abilities in task-based viability evaluation. As a result, the findings of this inquiry are consistent with those of earlier ones.

Based on the findings of H4, a moderating effect of curiosity exists on the relationship between entrepreneurial passion and entrepreneurial learning. Questionnaire items measuring openness to new experiences and willingness to engage in exploratory activities were key indicators. This finding aligns with previous research that suggested curiosity possesses moderating effects. Entrepreneurs are satisfied in determining novel and innovative opportunities (Celik et al., 2016). Furthermore, the researchers argue that the connection between entrepreneurial passion and entrepreneurial learning strengthens when individuals display curiosity. The self-regulatory theory asserts that driven business owners can easily acquire the essential information to operate successful SMEs (Flores Pérez & Guevara, 2023). Due to their inherent curiosity, entrepreneurs have a deeper understanding of their respective businesses. The most difficult work in entrepreneurship can be accepted and completed by interested entrepreneurs, sparking their passion and boosting their learning, claim Kashdan et al. (2018). Therefore, the findings of this study agree with those of earlier studies.

In conclusion, the detailed examination of the questionnaire components clarifies the reason behind the study’s results. The specific aspects of entrepreneurial passion, learning, and curiosity identified in the responses validate the hypotheses and provide a richer understanding of the dynamic interplay between these factors. This understanding leads to actionable suggestions for entrepreneurs and business educators, emphasising developing targeted skills and traits to foster innovation in the SME sector.

5.1. Theoretical implications

This research contributes to the entrepreneurial literature by employing the mediating role of entrepreneurial learning and the moderating effect of curiosity, utilising the intentions model and KBV to examine the association between entrepreneurial passion and business model innovation. This study illuminates the entrepreneurial process within Turkish SMEs, an area that, while critical, has not been exhaustively examined in prior research.

The current study demonstrates how it can be done, even though some business owners find it difficult to create their business models. Three significant theoretical advancements are presented in this research. It begins by examining the importance of entrepreneurial passion in developing innovative business ideas. Many researchers examined entrepreneurial passion in their studies, but a few discussed entrepreneurial passion with respect to business model innovation in Turkish SMEs. Henceforth, this study is significant, providing this theoretical implication.

This study extends the dialogue on entrepreneurial passion beyond its general association with entrepreneurship to pinpoint its impact on business model innovation in the Turkish SME sector. Doing so fills a significant gap highlighted by the seminal works of Tang et al. (2012) and Obschonka et al. (2017), who have delved into the antecedents of business model innovation but not within this specific context. This study aims to enhance the existing literature by concentrating specifically on the impact of entrepreneurial passion on business model innovation. This study makes a substantial contribution to the existing body of literature. It addresses a research gap by highlighting the limited focus on the importance of entrepreneurial passion in prior studies. The present study examines the many components of business model innovation by building upon existing scholarly research.

Leveraging the intentions model and KBV, the research advances the theoretical understanding of entrepreneurial learning’s role in the innovation process, as discussed by Foss and Saebi (2018); Snihur and Zott (2019) in their respective works. These models are enhanced by showing how entrepreneurial learning acts as a pathway through which entrepreneurial passion leads to business model innovation. According to Luu (2023), entrepreneurial passion can be interpreted as a person’s drive to launch a business, but it demands preparation to impact the creation of original business concepts. This study contributes to the existing body of knowledge by examining the mechanisms through which entrepreneurs can effectively engage in entrepreneurial learning to facilitate business model innovation, according to Foss and Saebi (2017); Sosna et al. (2010). This study emphasises the necessity for multiple innovation methods, from methodology to developing innovative business models. This research expands the understanding of the stages of innovation realisation, including concept genesis and execution. The existing literature examines why some business owners succeed in innovating their models while others fail (Chen & Liu, 2023). The intentions model and KBV support include entrepreneurial learning’s mediation role in the current study. This study significantly contributes to the area by combining two entrepreneurship concepts. According to Krueger (2017), the intentions model examines entrepreneurs’ goals and behaviours.

Third, this study provides evidence that the association between entrepreneurial passion and entrepreneurial learning is moderated by curiosity. Literature has acknowledged the relationship between entrepreneurial passion and curiosity (Luu, 2023). Entrepreneurs who are more committed to and passionate about their businesses are more inventive (Ahsan et al., 2023). According to Ferreira-Neto et al. (2023), curiosity strengthens the connection between entrepreneurial passion and entrepreneurial learning. The findings of this study indicate the need for more investigation into curiosity.

In summary, this research makes a critical contribution to entrepreneurial theory by elucidating the nuanced interactions between passion, curiosity, and learning and their collective impact on business model innovation. It offers a new vantage point on entrepreneurial behaviours and intentions, as per Krueger (2017), underpinned by a robust theoretical foundation that combines the intentions model with KBV. This integration underscores the value of examining entrepreneurial constructs in tandem and highlights the need for further exploration into the multifaceted nature of entrepreneurship.

5.2. Practical implications

The present study strongly emphasises how entrepreneurs and managers create business model innovation with important management consequences. The study’s first recommendation is for business owners to prioritise different factors to implement business model innovation in their organisations (Ferreira-Neto et al., 2023). They should put more effort into turning their original concepts into reality. Owners of businesses should also concentrate on acquiring the knowledge and skills required to put their original concepts into practice (Zhao et al., 2021). They must also enhance their knowledge and acquire new talents. Entrepreneurs should be interested in new information since curiosity increases their drive to learn and develop entrepreneurial skills (Luu, 2023).

Company owners must also evaluate their surroundings and commit to implementing the new business model (Lu et al., 2023). Business model innovation can be realised by implementing a proficient entrepreneurial learning approach (Chen & Liu, 2023). Acquiring effective entrepreneurial learning and skills ensures firms’ long-term viability and expansion. This study revealed that the entrepreneur’s passion is essential to developing new SMEs. Therefore, learning about entrepreneurship should encourage entrepreneurs to be eager and creative. Workshops and seminars can help business owners learn things well to innovate their ideas fast.

5.3. Limitations and future research directions

There are some particular limitations despite the study’s substantial contributions. First, the study’s use of a cross-sectional research technique limited the analysis of causal relationships between components. Consequently, a long-term study based on secondary data will be able to determine the association between entrepreneurial passion and business model innovation. Entrepreneurs’ thought processes can be studied, and researchers can contact these businesses to discover more about how they have evolved and progressed through time (Lu et al., 2023). Future researchers can get secondary data about the growth and development of business initiatives through databases or the Internet, according to Sekaran and Bougie (2016). The second factor limiting the research’s generalisability is that owners of only manufacturing SMEs in Turkey provided the data for the current study. Researchers can collect data in the future to make their research more relevant to various industries in Turkey. If research findings may be generalised, data from other countries may be acquired. Third, given that this research study employed information from already-running organisations, there might be a bias in favour of survival. Future researchers can collect data from failing small and medium enterprises to generalise the findings and boost their validity and dependability.

The findings of this study also recommend further research. This quantitative study analyses the association between entrepreneurial passion and business model innovation. A qualitative or mixed-method technique could explore the phenomenon (Sekaran & Bougie, 2016). This method enables researchers to gather more beneficial data. They can undertake interviews or case studies to examine the reasons behind business model innovation (Malmström & Johansson, 2017; Martins et al., 2015). The questionnaires were used to gather respondents’ data, reducing the research’s generalisability. Future researchers can collect the data through focus group discussions, observations, and interviews (Bougie & Sekaran, 2019).

Furthermore, the scope of this study has been limited to a select number of critical domains within the realm of business model innovation. However, future research may direct their focus towards several novel dimensions of business model innovation. Furthermore, the current study must examine the fundamental concepts of business model innovation. Future research may explore the interrelationships among various antecedents and the subject matter of business model innovation (Osiyevskyy & Dewald, 2015).

5.4. Conclusion

The existing body of scholarly literature about entrepreneurship has expanded significantly, leading to a recognition that entrepreneurial passion plays a crucial role in the process of cultivating business model innovation (Luu, 2023). This study highlights how entrepreneurial learning and curiosity influence a moderated mediated paradigm-based new business model innovation. Therefore, this study contributes to advancing the study of business model innovation and other pertinent fields (Zhao et al., 2021).

This study also examines entrepreneurial learning as a mediating variable and curiosity as a moderating variable to determine the association between entrepreneurial passion and business model innovation using the KBV and intentions model. This research links KBV and the intentions model regarding conceptual and theoretical entrepreneurship challenges.

Disclosure statement

No potential conflict of interest was reported by the author.

Data availability statement

The data that support the findings of this study are available from the corresponding author upon reasonable request.

Additional information

Funding

No funding was received for this research.

Notes on contributors

Sait Revda Dinibutun

Sait Revda Dinibutun is currently working as an Assistant Professor at the American University of the Middle East (AUM), Kuwait. He earned his PhD in Management and Organisation from Marmara University, Istanbul. His research interests are in the fields of Management, Organisational Behaviour, Human Resources Management and Business.

This study focuses on entrepreneurship, which has become crucial in the fiercely competitive market. If entrepreneurs and managers want to create business model innovation, they should prioritise various elements to implement business model innovation in their startups. To expand their businesses, they should acquire the required knowledge and skills to put their original concepts into practice. They should be interested in new information since curiosity increases their drive to learn and develop entrepreneurial skills. Hence, this study highlights all those elements that entrepreneurs should focus on to achieve business model innovation to start or expand their startups.