Purpose This paper aims to explore how digital technologies have forced small- to medium-sized enterprises (SMEs) to reconsider and experiment with their business models (BMs) and how this contributes to their innovativeness and performance. Design/methodology/approach An empirical study has been conducted on 338 European SMEs actively using social media and big data to innovate their BMs. Four in-depth case studies of companies involved in BM innovation have also been carried out. Findings Findings show that the use of social media and big data in BMI is mainly driven by strategic and innovation-related internal motives. External technology turbulence plays a role too. BMI driven by social media and big data has a positive impact on business performance. Analysis of the case studies shows that BM is driven by big data rather than by social media. Research limitations/implications Research into big data- and social media-driven BMs needs more insight into how components are affected and how SMEs are experimenting with adjusting their BMs, specifically in terms of human and organizational factors. Practical implications Findings of this study can be used by managers and top-level executives to better understand how firms experiment with BMI, what affects business model components and how implementation might affect BMI performance. Originality/value This paper is one of the first research contributions to analyse the impact of digitalization, specifically the impact of social media and big data on a large number of European SMEs.
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