How cluster initiatives support business model innovation of small and medium-sized enterprises: cases from a public university in Bolivia

Purpose This research examines the experiences of small and medium-sized enterprises to analyze how Business Model Innovation (BMI) may be facilitated by cluster initiatives and examining the implications of how cluster initiatives can support BMI of SMEs in a lower-middle income country like Bolivia. Design/methodology/approach This study utilizes a qualitative methodological approach of multiple case studies to investigate the support of cluster initiatives for BMI of SMEs in the context of Bolivia. Findings The main finding indicates that the SMEs get support mainly with value creation innovations, for example access to and use of technical equipment and knowledge, lowering their cost for innovation and production and creating affordable value innovations. This type of support is satisfactory to owners/managers of SMEs aiming to incrementally change their local and traditional business model but may be of limited value to owners/managers of SMEs wishing to scale and/or more radically change their business model. Research limitations/implications This research project aims to improve the cluster initiative, to utilize the full potential of BMI for its cluster firms include careful selection of SMEs participating in the cluster initiative, trust-building activities and additional support to innovation in value delivery and value capture components of the business model. Originality/value The investigation distinguishes itself as a unique exploration of BMI among SMEs in cluster initiatives within lower middle-income economies. It elucidates the indispensable role played by universities in supporting the innovation of SMEs' business models, advocating for diverse approaches that require comprehensive coverage to exert a more significant influence on the topic.