Year
2025
Abstract
This paper advances a conceptual framework that examines how entrepreneurial mindset (EM) and AI readiness interact to shape business model innovation (BMI) and financial performance (FP) within Indonesia’s profit-oriented Public Service Agency (BLU) business units. As hybrid organizations, BLU business units must simultaneously fulfill their public service mandate while pursuing revenue generation, creating a unique context that demands stronger theoretical grounding. The framework draws on New Public Management (NPM) principles and the Dynamic Capabilities (DC) perspective to argue that an entrepreneurial mindset stimulates BMI both directly and indirectly through enhanced AI readiness. In turn, BMI is positioned as a driver of financial performance and organizational sustainability. By integrating insights from entrepreneurship, digital transformation, and public sector innovation, this study contributes conceptually to the literature on hybrid public–commercial entities and establishes a foundation for subsequent empirical validation.
Keywords:
Entrepreneurial Mindset; Business Model Innovation; AI Readiness; Public Service Agencies; BLU
Recommended Citation
Nurholis, Ahmad and Adzakie, Muhammad Rifky, "Beyond Bureaucracy: Entrepreneurial Mindset and AI Readiness as Drivers of Business Model Innovation in BLU Business Units — A Conceptual Framework" (2026). International Conference on Business and Management Research (ICBMR). 28.
https://scholarhub.ui.ac.id/icbmr/2025/1/28
Included in
Finance and Financial Management Commons, Nonprofit Administration and Management Commons, Strategic Management Policy Commons
Beyond Bureaucracy: Entrepreneurial Mindset and AI Readiness as Drivers of Business Model Innovation in BLU Business Units — A Conceptual Framework
This paper advances a conceptual framework that examines how entrepreneurial mindset (EM) and AI readiness interact to shape business model innovation (BMI) and financial performance (FP) within Indonesia’s profit-oriented Public Service Agency (BLU) business units. As hybrid organizations, BLU business units must simultaneously fulfill their public service mandate while pursuing revenue generation, creating a unique context that demands stronger theoretical grounding. The framework draws on New Public Management (NPM) principles and the Dynamic Capabilities (DC) perspective to argue that an entrepreneurial mindset stimulates BMI both directly and indirectly through enhanced AI readiness. In turn, BMI is positioned as a driver of financial performance and organizational sustainability. By integrating insights from entrepreneurship, digital transformation, and public sector innovation, this study contributes conceptually to the literature on hybrid public–commercial entities and establishes a foundation for subsequent empirical validation.