Small and medium-sized enterprises (SMEs) are at the heart of a nation’s wealth creation, employment generation and economic development. To help SMEs stay competitive in a fast-changing environment, researchers have recently emphasized the relevance of business model innovation (BMI). However, BMI and its performance are not linear but rather a complex phenomenon that depends on contingency factors. Based on configurational theory, this study extends the BMI research to SMEs, exploring the management approaches and BMI capabilities that foster BMI in established SMEs. To achieve this objective, this study of a purposive sample of 78 Spanish SMEs adopts the fuzzy set qualitative comparative analysis (fsQCA) method. Results suggest three substantive conclusions. First, long-term managerial orientation is a key factor for the development of BMI in SMEs. Second, five BMI capabilities (sensing customer needs, sensing technological options, conceptualizing and experimenting, collaborating and BMI strategy) support, in combination with the management approach, the development of BMI in established SMEs. Third, open innovation (open flows of knowledge regarding market needs and the potential of technologies, as well as collaboration with customers) are concrete preconditions of business model innovation. Therefore, managers in SMEs need both to actively consider their management approach towards BMI, and to develop some key dynamic capabilities in their organizations to implement BMI, an approach also valid for post-Covid-19 management.

Industry 4.0 will be the most powerful driver of innovation over the next few decades, innovation being the move towards sustainable competitiveness and profitable growth [1]. The research underpins the earlier research in methodological terms and traces successful performance such as productivity and quality results of an SME (small and medium-sized enterprise) within the context of Industry 4.0. This new industrial paradigm is not just about technology, but it also involves changes in the technical and production development, so current ways of value creation are evolving and bringing extensive organizational consequences and opportunities. Our case study presents the systematic diversification process described in the Maturity Model to implement Industry 4.0 scenario [2] in an automotive production company, using the three elements: Envision, Enable and Enact. We choose to present this case study because many companies want to start the implementation of this new business model. However, there is a gap of information concerning the steps that a small and medium production unit needs to make in order to change the strategy of the company regarding the Industry 4.0. All the above affect directly the productivity results without negative effects on the quality results of the analysed company.

Information about the paper titled "BUSINESS MODEL INNOVATION IN INDUSTRY 4.0: THE CASE OF A UNIVERSITY-INDUSTRY EXPERIENCE IN SMES" at IATED Digital Library