Digital Platform Capabilities for Transforming Cultural Heritage Business: Exploring the Mediating Role of Business Model Experimentation and Competitive Advantage

Abstract

Digitalisation has evolved as a multidimensional phenomenon and impacts the business world. SMEs heavily invest in digital platform capabilities to keep track of digital transformation, enabling them to perform business model experimentation to generate and develop innovation. This paper explores the role of these two crucial growth-promoting variables in the performance of art and craft-based firm’s performance. Through this paper, the researchers contest the argument that, although digital platform capabilities accelerate business model experimentation for firm performance, competitive advantage plays a significant mediating role. Along with these arguments, this study also explores the role of digital platform capability in business model experimentation. It examines the mediating role of business model experimentation in the forming of a competitive advantage. The research model under examination belongs to the explorative school of research; hence, the researchers have used partial least square–structural equation modelling (PLS-SEM) on a sample of 211 Indian firms belonging to the category of art and craft-based businesses. The hypothesis testing results facilitate exciting insights about the direct and indirect effects of digital platform capabilities, business model experimentation, and competitive advantage on firm performance. In light of the research findings, policymakers, SME consultants, and managers may obtain practical insights in order to develop an intervention mechanism. Researchers working in this area will glean a fresh look at the antecedents of SME performance as this model is explorative; future research may explore the testing of the model in different geographic locations and industry contexts.