Effect of Business Model Innovation on the Performance of Raw Material Companies in Africa

This study investigates the impact of Business Model Innovation (BMI) on firm performance in African raw material enterprises, with a particular focus on the moderating role of technological innovation. Despite the continent’s heavy reliance on commodity-based industries, African SMEs face structural constraints including fragmented supply chains, limited digital adoption, and regulatory instability that may affect the effectiveness of innovation strategies. Using cross-sectional data from 300 firms across mining, agriculture, and energy sectors between 2020 and 2024, this study employs correlation, multiple regression, quantile regression, and instrumental variable (IV–2SLS) analyses to examine the adoption, performance outcomes, and contingencies of BMI. Results demonstrate that BMI significantly enhances Return on Investment (ROI), market growth, and operational efficiency, with technological innovation strengthening these effects, particularly for high-performing firms. Industry-level analyses reveal heterogeneity, with mining and energy firms benefiting most, while agricultural enterprises experience weaker impacts due to structural and infrastructural constraints. These findings provide robust empirical evidence that BMI, especially when complemented by technological capabilities, can improve firm performance in resource-dependent African economies. The study contributes to theory by extending BMI research to developing contexts and informs managers and policymakers seeking strategies for economic diversification, sustainable growth, and competitiveness in global value chains.