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Rapid changes in the external environment and dynamic markets have challenged the survival of every kind of organizations. Many business firms fail due to lack of managerial skills and an ineffective business model to adjust their operations in line with the competitive environment. This study examines the influence of owners and top managers’ “Big Five” personality traits on business model innovation. Data were collected through structured questionnaires using a sample size of 343 owners and senior managers of SMEs operating in the emerging economy Pakistan. Hypotheses were tested using structural equation modeling (SEM) in AMOS.21. The results indicate that managers with extroversion, agreeableness, and openness to experience personality have a significant positive influence on business model innovation. However, neuroticism personality has a significant negative while conscientiousness has an insignificant positive influence on business model innovation. Implications for practice are also discussed.
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