The effect of absorptive capacity and strategic flexibility on model innovation of small and medium businesses during the Corona virus pandemic

Today, the outbreak of the Covid-19 pandemic has had significant effects on the performance of important businesses, especially small and medium businesses, which are of particular importance in the process of economic and social growth and development of countries and the special attention of policymakers. Exogenous crises have put the survival of small and medium businesses in doubt, and this causes fundamental disturbances in the economic systems of countries, so it is necessary for the managers of these types of businesses to develop and innovate their business model as a constant source. It is worth taking action to maintain, survive and grow your business in this critical situation. The importance of business model innovation in today's world is increasing, and top executives of global companies predict that its necessity will even exceed the importance of product and service innovation. Because business model innovation is a new criterion based on which pioneering companies try to create and provide more value to their customers, therefore the purpose of this research is to investigate the effect of absorption capacity and strategic flexibility on small and medium business model innovation with emphasis It is about the effects of the pandemic virus, Covid-19. The present research is applied in terms of purpose and descriptive correlation in terms of method. The statistical population of this research is the small and medium-sized businesses of Mashhad in the number of 1300 companies, which were selected using the Cochran formula, a sample consisting of 297 companies, and taking into account the return rate, the research questionnaire containing demographic questions and basic questions related to the measurement of potential absorption capacity. 6 items), realized absorptive capacity (7 items), strategic flexibility (6 items) and business model innovation (9 items) in the number of 350 questionnaires were sent electronically to the senior managers of these companies for completion, and finally, 299 questionnaires were collected. Descriptive statistics related to respondents' demographic information in terms of gender, age, education level, and company size were analyzed using SPSS software. The content validity of the questionnaire was checked and confirmed with the help of five experts and academic faculty members in the field of management, as well as two indicators, CVI and CVR. The validity of the structure was examined and confirmed using convergent validity (AVE index greater than 0.5) and divergent validity (Fornell-Larker matrix). Reliability was also confirmed using Cronbach's alpha coefficients and composite reliability (more than 0.7). Finally, the fit of the model with the help of coefficients of determination (R2) and the goodness of fit index (GOF) shows a moderate to a strong fit of the research model. Then, using SmartPLS software and structural equation modeling based on the least-squares approach, the research hypotheses were tested. The results of this research show that the potential absorptive capacity is directly related to the realized absorptive capacity with a path coefficient of 0.633 and a significance value of 20.019, as well as to business model innovation with a path coefficient of 0.234 and a significance value of 3.042, and on strategic flexibility with a path coefficient of 0.279 and a significance value of 3.863. It has a positive and significant effect. Also, the findings showed that strategic flexibility does not have a positive and significant effect on business model innovation. The findings of the research show that absorptive capacity is considered a dynamic ability as a prerequisite for business model innovation and strategic flexibility, which are two vital elements for gaining competitive advantage, and has a significant and positive effect on each of these. Therefore, the potential absorption capacity of small and medium-sized businesses generally increases their capacity to access, internalize, and exploit new knowledge, business model innovation, and flexibility. Therefore, it is suggested that managers of small and medium businesses focus on different aspects of their business model as well as its relationship with the business environment. Also, to control the conditions and the possibility of survival and continuation of the business, they should be aware of the fundamental changes in the market and the need for creative business platforms and management of conditions. Pay more attention to turbulence. Therefore, measures such as reviewing the business model through a bias toward digital transformation and identifying digital capabilities appropriate to turbulent conditions, as well as flexibility and changing the view of resources, and finding solutions to solve the future consequences of the Covid-19 epidemic crisis can be among the necessary suggestions and solutions. Managers of small and medium-sized businesses are considered critical in these critical situations, the reason being that in critical situations, senior business managers focus on making quick decisions in the shortest possible time, which creates small advisory circles and most decisions are based on knowledge. Potentially occurs.