- A report of GEM (2018) stated that start-up
firms with the total time doing business under 3.5 years
have only 20.8% success rate. Among various reasons
leading to their failure, not having an appropriate
innovating business model is considered the major one.
Thus, this research was conducted with the purpose of
testing the influence of business model innovation on the
business performance of start-up firms. This study
applied PLS-SEM approach to process data collected
from 150 Vietnamese start-up firms. It is confirmed
based on the research findings that BMI’s three basic
components have impacts with the same direction on
the performance of start-up firms in their beginning
period of doing business. The study results collected
have presented practical contribution to the
management level of each start-up firm in order to
improve their effectiveness. On the other hand,
suggestions are also proposed to assist other relating
organizations in developing their abilities to support
start-up activities. In addition, research limitations and
directions for further researches are proposed.
Keywords : Business model innovation, Start-up performance, Start-up firms.