Digital Business Model Innovation and Business Performance: The Mediating Role of Digital Capability

Gunawan  Wibisono; Siti  Kholifah; Tantik  Sumarlin

doi:10.51903/btjy4j26

Authors

Gunawan Wibisono Universitas Sains dan Teknologi Komputer, Kota Semarang, Jawa Tengah, Indonesia
Siti Kholifah Universitas Sains dan Teknologi Komputer, Kota Semarang, Jawa Tengah, Indonesia https://orcid.org/0000-0001-8407-5007
Tantik Sumarlin Universitas Sains dan Teknologi Komputer, Kota Semarang, Jawa Tengah, Indonesia https://orcid.org/0009-0009-2372-0450

DOI:

https://doi.org/10.51903/btjy4j26

Keywords:

Business Performance, Digital Business Model Innovation, Digital Capability, Digital Transformation, PLS-SEM

Abstract

Digital transformation has encouraged firms to redesign how they create, deliver, and capture value and to develop digital capabilities that can support these changes. This study examines the modeled relationship between Digital Business Model Innovation (DBMI), Digital Capability, and Business Performance, with Digital Capability specified as a mediator. A quantitative explanatory design was applied using 180 simulated observations for methodological and analytical practice. The data were generated from predefined measurement dimensions and a specified correlation structure, then analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS. In the simulated model, DBMI was positively associated with Business Performance (β = 0.412; p < 0.001) and Digital Capability (β = 0.736; p < 0.001), while Digital Capability was positively associated with Business Performance (β = 0.451; p < 0.001). The indirect effect was also significant (β = 0.332; p < 0.001), indicating a partial mediation pattern in the simulated model. These results illustrate how the proposed DBMI → Digital Capability → Business Performance mechanism can be examined using PLS-SEM. They should not be interpreted as evidence that DBMI causes improvements in actual firms. The study therefore provides a methodological illustration of the proposed relationships and identifies implications that require validation with empirical organizational data

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