Exploring Customer Perceptions of Business Model Innovation in Family Economic Groups: Evidence from Ecuador

Abstract

This study investigates the determinants of customers’ perception of business model innovation (BMI) and its impact on customer satisfaction (CS), customer loyalty (CL), and firm sustainability (FS) within Ecuadorian family economic groups (EFEGs). It also examines the moderating role of perceived BMI in the relationships between CS, CL, and FS. Data were collected through an online survey yielding 342 valid responses, using a structured instrument that included socio-demographic variables, perceived EFEG characteristics, and nine validated constructs. Reliability and validity were corroborated through exploratory and confirmatory factor analyses, while structural equation modeling (SEM) and multiple regression analyses were employed to test the proposed relationships. The results reveal that socially responsible consumption (SRC), technological/digital customer skills (TCS), value creation innovativeness (VCrI), value proposition innovativeness (VPI), and value capture innovativeness (VCI) significantly influence customers’ perception of BMI. In turn, BMI positively influences CS, CL, and FS, and moderates the relationships between CS and FS, and CL and FS, though it does not significantly moderate the CS–CL relationship. These findings are consistent with previous research on European family firms, emphasizing the relevance of innovation capabilities, entrepreneurial orientation, and socioemotional wealth in enhancing adaptability and performance in family-owned businesses. This study contributes novel empirical evidence on BMI in the context of an emerging economy dominated by family firms. It underscores BMI as a dynamic capability crucial for fostering customer engagement, improving competitiveness, and ensuring long-term sustainability. Managerial implications suggest that EFEG managers should prioritize digital integration, service innovation, and transparency to strengthen customer trust and loyalty. Future research should broaden the scope to include other Latin American contexts, integrate internal organizational perspectives, and explore intergenerational dynamics and digital transformation processes to deepen understanding of BMI in family business ecosystems.