DOI: https://doi.org/10.36347/sjebm.2025.v12i07.002

Pages: 171-184

The business model innovation (BMI) and strategic risk management (SRM) are understood to play a vital role in entrepreneurial performance, their interaction has been understudied, especially in the environment of dynamic ecosystem, which is characterized by resource limits and environmental turbulence that require flexible strategies. The studies that have been reported previously on the subject addressed the issues of BMI and SRM separately and, largely, with a big company focus that creates a gaping hole in our knowledge of how entrepreneurial companies combine these strategies to improve resilience and performance. Closing this gap would be crucial because the rapidly growing volatility of the global markets requires elaboration of evidence-based approaches towards sustainable innovation. This paper explored the combined effect of BMI and SRM on firm performance in three entrepreneurial ecosystems which included Silicon Valley (USA), Shenzhen (China), and Berlin (Germany), as well as these three ecosystems were chosen because of their different institutive and market features. The mixed methods were used, where quantitative measurements were collected in multiple surveys of 100 firms (measuring BMI (15 items scale designed by Clauss), SRM (12 items measurement scale developed by Mikes and Kaplan) and the growth in the revenues) and qualitative data was collected through 30 interviews to put the results into perspective. Statistical analysis involved correlation test, regression and non-parametric comparison (Kruskal-Wallis, Mann-Whitney U). It was found that BMI /SRM was moderately to highly adopted (BMI mean = 4.03, SRM mean = 3.56) but the correlations between these measures and revenue growth were weak (*r* = 0.0824 -0.12, p > 0.05). Environment specific patterns occurred: Shenzhen had the most robust relationship between BMI and performance (quantile regression: 2,20, *p* = 0.03), and Silicon Valley had a minor tradeoff between BMI and growth.