The Impact of Design Thinking on Corporate Performance: The Mediating Role of Business Model Innovation

Document Type : Research Paper

Authors

1 Assistant Prof., Department of Family Studies, Faculty of Social Sciences, University of Tehran, Tehran, Iran.

2 PhD Candidate, Department of New Business, Faculty of Entrepreneurship, College of Management, University of Tehran, Tehran, Iran.

3 Associate Prof., Department of New Business, Faculty of Entrepreneurship, College of Management, University of Tehran, Tehran, Iran.

10.22059/jibm.2024.373874.4769

Abstract

Objective
This study investigates the impact of design thinking on corporate performance, with business model innovation serving as a mediating factor. Recognized as a key approach to fostering innovation, design thinking is explored here to understand the mechanisms and pathways through which it enhances organizational performance. Furthermore, by emphasizing the mediating role of business model innovation, the study seeks to explore how innovation processes facilitate the transfer of design thinking into improved corporate outcomes. Accordingly, the research seeks to provide an analysis of the interrelationships and interactions among design thinking, business model innovation, and corporate performance, highlighting the crucial role of innovation mediation in translating design thinking into organizational value creation and performance improvement.
 
Methodology
This research employs a quantitative approach and utilizes a correlational research design for data collection. Following a comprehensive review of the theoretical foundations, a conceptual model and a five-point Likert scale questionnaire were developed. The questionnaire consists of 45 items corresponding to the research variables, all adapted from previous scholarly studies, with their respective sources detailed. The statistical population comprises product and project managers from information technology firms. A total of 147 questionnaires were distributed, of which 109 valid responses were retained for analysis. Data collection was conducted in 2023. For data analysis, SmartPLS 3 was employed using the Structural Equation Modeling (SEM) technique, while SPSS was utilized for descriptive statistical analysis. To assess the reliability of the measurement instruments, Cronbach’s alpha coefficients, composite reliability, and Average Variance Extracted (AVE) were calculated.
 
Findings
Based on the proposed conceptual model, all eight hypotheses were confirmed. The results demonstrate that human-centeredness, learning from failure, customer need discovery, idea generation, idea testing, business model innovation, and design thinking influence corporate performance significantly, as hypothesized in the model. These findings indicate that the conceptual framework effectively explains the examined phenomenon and possesses adequate precision and validity.
 
Conclusion
This study underscores the high impact of human-centeredness, interrogative reasoning, learning from failure, customer need discovery, idea generation, idea testing, business model innovation, and design thinking on business performance. The findings reveal that these factors positively affect corporate performance by enhancing managerial processes and strategies, fostering innovation, and strengthening organizational capabilities. Consequently, firms can leverage these insights to develop innovative strategies and approaches that enhance performance, boost competitiveness, and achieve sustainable growth in today’s dynamic and complex business environments.

Keywords

Main Subjects

References

 
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Journal of Business Management
Volume 17, Issue 4
2025
Pages 1274-1297

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