Linking Digital Infrastructure, Digital Business Model Innovation, and Performance: Insights from Tunisian Entrepreneurs

Abstract

The accelerated shift toward digitalization has reinforced the strategic importance of leveraging digital infrastructures and rethinking business models for SMEs and entrepreneurs seeking to enhance competitiveness and performance in an increasingly uncertain environment. This study investigates how digital business model innovation (DBMI) contributes to improving SME performance, with a specific focus on the enabling role of digital infrastructure (DI) and its implications for entrepreneurial activities. A quantitative survey was conducted among 209 Tunisian entrepreneurs managing SMEs, selected using a convenience sampling technique. Data were analyzed using Partial Least Squares—Structural Equation Modeling (PLS-SEM). The findings reveal that a robust digital infrastructure significantly stimulates DBMI, which in turn enhances organizational performance (OP). Furthermore, DI was found to strengthen entrepreneurs’ capabilities to redesign value creation, delivery, and capture mechanisms within their ventures. This research contributes to the literature on digital transformation, entrepreneurship, and business model innovation in emerging economies. It also offers actionable insights for entrepreneurs and SME managers seeking to leverage digital technologies to foster sustainable growth, enhance competitiveness, and adapt to rapidly evolving market conditions.