Linking strategy with open innovation and performance in SMEs

2014 ◽  
Vol 18 (2) ◽  
pp. 14-27 ◽  
Author(s):  
Maria Crema ◽  
Chiara Verbano ◽  
Karen Venturini
Keyword(s):  
Firm Performance ◽  
Open Innovation ◽  
Structural Equation ◽  
Core Competencies ◽  
Geographical Area ◽  
Firm Strategy ◽  
Innovation Performance ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to analyze the linkages between company’s strategy, open innovation and innovation performance, focusing on small and medium enterprises (SMEs). In more detail, the aim is to investigate the influence of firm strategy on the level of openness adopted and then the impact of open innovation on firm performance. Finally, the influence of context-specific variables (such as firm size, technology intensity, geographical area, experience of the company and technology turbulence) on the relations mentioned above will be verified. Design/methodology/approach – A survey has been conducted in the Italian manufacturing context and a database of 107 responses was obtained. The constructs of the research framework were created and validated using factor analysis; further, structural equation modeling was performed to verify the hypothesis about the studied relations. Findings – The obtained model confirmed most of the relations hypothesized, giving useful indications on how to define competitive strategy and coherent level of open innovation to pursue improved firm performance. Results highlight that firms, which pursue an innovative strategy are those who invest more on technical skills and core competencies. Companies who choose a strategy of diversification are likely to use, exclusively, managerial practices of open innovation, while firms focused on a strategy of efficiency are inclined toward open innovation practices and, to a lesser extent, to the development of core competencies. Originality/value – The main original contribution is the development of an integrated model that links company’s strategy, open innovation and innovation performance in SMEs.

Does CSR influence firm performance? A longitudinal study of SME sectors of Pakistan

2019 ◽  
Vol 11 (1) ◽  
pp. 27-53 ◽  
Author(s):  
Muhammad Ikram ◽  
Robert Sroufe ◽  
Muhammad Mohsin ◽  
Yasir Ahmed Solangi ◽  
Syed Zulfiqar Ali Shah ◽  
...  
Keyword(s):  
Longitudinal Study ◽  
Firm Performance ◽  
Structural Equation ◽  
Design Methodology ◽  
Empirical Studies ◽  
Equation Modeling ◽  
Content Type ◽  
Significant Relationships ◽  
Corporate Social ◽  
The Impact

Purpose This study aims to examine whether corporate social responsibility (CSR) activities influence firm performance based on a longitudinal survey for small and medium-sized enterprises (SMEs) in Pakistan. Empirical studies suggest that the SME sector plays an essential role in the economic development of Pakistan and can be considered the backbone of the economy. Design/methodology/approach The data for this study were collected from SMEs located in the cities of Karachi, Lahore and Faisalabad in Pakistan. A well-designed questionnaire was administrated over 240 entrepreneurs to analyze and measure the impact of CSR on financial performance for a 12-month period. The authors used econometric analysis of the data using structural equation modeling. Findings Results reveal significant relationships between CSR and two determinants of firm performance, namely, employee commitment and corporate reputation. Research limitations/implications Findings of the study are important for policymakers, entrepreneurs and other professionals in SMEs sectors both in under-developed and, with further application and exploration, in developing countries. Originality/value There is no single longitudinal study prior to this has been carried out on the relationships of CSR and firm performance in the SME sector in the context of the Pakistani economy. Hence, this study significantly fills an important gap in the research.

Does entrepreneurs’ improvisational behavior improve firm performance in time of crisis?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peerayuth Charoensukmongkol
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Online Questionnaire ◽  
Competitive Intensity ◽  
Content Type ◽  
The Impact

Purpose This paper examines the effect of improvisational behavior of entrepreneurs on firm performance of small and medium enterprises (SMEs) in Thailand during the economic crisis following the COVID-19 pandemic. The study also explores external factors in terms of competitive intensity and internal factors in terms of financial and human resources possessed by firms that could enhance the impact of improvisational behavior on firm performance. Design/methodology/approach A self-administered online questionnaire survey was used to collect the data from the random sample of 312 SMEs in Thailand. Partial least squares structural equation modeling was used to analyze the data. Findings The analysis supports the positive relationship between the improvisational behavior of entrepreneurs and firm performance. Moreover, the moderating effect analysis shows that the positive impact of improvisational behavior on firm performance tends to be stronger for firms that encountered a higher level of competitive intensity and for firms that possessed a higher level of financial and human resources. Originality/value This research extends the knowledge from prior research by confirming some moderating factors that could strengthen the benefit of improvisational behavior during the crisis.

scholarly journals A contextual analysis of the impact of strategic sourcing and E-procurement on performance

2015 ◽  
Vol 30 (1) ◽  
pp. 1-16 ◽  
Author(s):  
Minkyun Kim ◽  
Nallan C Suresh ◽  
Canan Kocabasoglu-Hillmer
Keyword(s):  
Firm Performance ◽  
Product Life Cycle ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Sourcing ◽  
Research Results ◽  
Positive Effects ◽  
The Impact

Purpose – The aim of this study is to investigate the relationships among strategic sourcing, e-procurement and firm performance, along with the moderating effects of business characteristics and environmental factors on these relationships. Design/methodology/approach – This empirical investigation relies on structured survey responses from 137 managers of US manufacturing firms. The partial least squares-based structural equation modeling approach is used for data analysis. Findings – The research results confirm that both strategic sourcing and e-procurement have a positive effect on firm performance. In addition, e-procurement is also found to have a positive impact on strategic sourcing. In addition, the research results suggest that business characteristics and the environment, especially the degree of competition, market turbulence, firm size and stage in product life cycle moderate these relationships significantly. The positive effects of strategic sourcing and e-procurement on firm performance are particularly enhanced under the right conditions. Originality/value – This research is the first, to the best of our knowledge, to provide insights into the joint effects of strategic sourcing and e-procurement, and how business characteristics and the environment affect their roles on firm performance. In addition, firm performance is evaluated as a multi-dimensional construct involving financial, operational and supply chain aspects, with the measurements consisting of several second-order constructs. The study makes both theoretical and practical contributions.

Network embeddedness and innovation performance: a mediation moderation analysis using PLS-SEM

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongyun Tian ◽  
Shuja Iqbal ◽  
Farooq Anwar ◽  
Shamim Akhtar ◽  
Muhammad Aamir Shafique Khan ◽  
...  
Keyword(s):  
Absorptive Capacity ◽  
Significant Relationship ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Innovation Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Network Embeddedness ◽  
The Impact ◽  
The Relationship

PurposeThis study examines the impact of network embeddedness (NE) on innovation performance in small- and medium-sized enterprises (SMEs), and analyses absorptive capacity as mediator and openness as moderator.Design/methodology/approachData were collected from 209 employees of SMEs using a convenient sampling technique. Partial least squares structural equation modeling in SmartPLS was used to analyze the various constructs.FindingsThe results exhibit a positive and significant relationship in NE and absorptive capacity. Also, this study found a positive and significant relationship in absorptive capacity and innovation performance. Moreover, absorptive capacity has a positive and significant mediation role in the relationship between NE and innovation performance. Also, openness positively moderated the relationship of NE and absorptive capacity.Practical implicationsSMEs should try to implement the functions of NE, such as interaction with other firms in higher frequency, developing trust among all parties, clear alliance among the partners to enhance innovation performance. Similarly, SMEs should focus on absorptive capacity and openness to enrich innovation performance.Originality/valueThis study adds in the current literature of the chosen constructs and empirically contributes the effects in the manufacturing industry of Jiangsu Province, China.

The impact of marginalization on entrepreneurs’ online presence and firm performance

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nicole R. Fuller ◽  
Porter McDowell ◽  
Elyria A. Kemp
Keyword(s):  
Firm Performance ◽  
Risk Perceptions ◽  
Structural Equation ◽  
Reputation Management ◽  
Equation Modeling ◽  
Content Type ◽  
Web Presence ◽  
Online Presence ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine the relationship between marginalization, Web presence and firm performance for small- and medium-sized enterprises (SMEs). Design/methodology/approach This study relies upon interviews and surveys of managers and/or owners of SMEs. Using confirmatory factor analysis and structural equation modeling, the authors tested an integrated model of the relationship between marginalization, Web presence and firm performance. Findings Findings indicate that marginalization enhances the risk perceptions entrepreneurs assign to internet use. This enhanced risk perception then limits the extent to which an entrepreneur responds to online customer feedback, which has implications for the SME’s relationship and reputation management efforts with buyers, ultimately impacting the enterprise’s performance. Originality/value This study sheds light on the overlooked phenomena of marginalization and internet avoidance among entrepreneurs. The findings provide insight for entrepreneurs on the deleterious consequences associated with lacking an online presence.

Sustainability knowledge and training: outcomes and firm performance

2019 ◽  
Vol 30 (2) ◽  
pp. 294-311 ◽  
Author(s):  
Laura M. Birou ◽  
Kenneth W. Green ◽  
R. Anthony Inman
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Structural Equation ◽  
Green Manufacturing ◽  
Equation Modeling ◽  
Organizational Sustainability ◽  
Sustainable Supply Chain ◽  
Content Type ◽  
The Impact ◽  
And Training

Purpose The purpose of this paper is to examine the impact of sustainability training and knowledge on sustainable supply chain practices (SSCP) and the resulting impact on sustainable supply chain outcomes (SSCO) and firm performance. It also provides a valid and reliable measure of SSCO. Design/methodology/approach Data collected from 129 manufacturing managers are analyzed using a partial least squares structural equation modeling methodology. Manufacturing managers provide data reflecting the degree to which their organizations improved sustainability training and knowledge, utilize SSCP, the degree to which SSCO result, and the subsequent operational performance (OPP) and environmental economic performance (EEP). Findings Organizational sustainability training and knowledge positively impacts SSCP, and the utilization of SSCP results in SSCO which favorably impact OPP and EEP. Research limitations/implications The study is limited to manufacturing organizations. Practical implications Practitioners are encouraged to improve organizational learning and training and are provided with a valid and reliable scale for measuring the outcomes of their sustainable practices. Combined with the work of others, this provides a framework for evaluating different aspects of sustainability with a firm. Social implications Improved green manufacturing practices improves the environment by eliminating all forms of waste and provides eco-friendly products and services. Originality/value A sustainable supply chain training and knowledge model is proposed and empirically assessed. The results of this investigation support the proposition that sustainability training and knowledge support the implementation of sustainability supply chain practices which, in turn, improve sustainability outcomes and operational and EEP.

Leveraging supply chain collaboration in pursuing radical innovation

2018 ◽  
Vol 10 (3) ◽  
pp. 350-370 ◽  
Author(s):  
Erlinda N. Yunus
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Structural Equation ◽  
Positive Impact ◽  
Radical Innovation ◽  
Incremental Innovation ◽  
Equation Modeling ◽  
Supply Chain Collaboration ◽  
Content Type ◽  
The Impact

PurposeThe purpose of this study is to examine the relationship between supply chain collaboration and innovation. It particularly investigates the effect of collaboration on radical innovation and highlights the positive impact of innovation, both radical and incremental, on business performance.Design/methodology/approachA survey of 230 Indonesian firms was conducted and the instrument was tested for reliability and validity to warrant its psychometric properties. The data were analyzed using structural equation modeling.FindingsThis study reveals that collaboration with suppliers brings radical innovation, while collaboration with customers brings incremental innovation. Contrary to this study’s conjecture, albeit interesting, collaboration with customers negatively affects radical innovation. Both radical and incremental innovations further exert a positive influence over firm performance.Research limitations/implicationsThis study focuses on the relationships between supply chain collaboration, innovation and firm performance. The results enhance our understanding of types of innovation that are promoted by each dimension of collaboration. Further studies could extend the research by using a more elaborate measure of innovation or perform a longitudinal examination.Practical implicationsManagers are encouraged to pursue innovation as it improves firm performance. They could exploit their current partnership with customers to generate incremental innovation or leverage their supplier network to develop radical innovation.Originality/valueStudies that specifically investigate the impact of firms’ collaboration with their supply chain partners on radical innovation are quite scarce. This empirical study is among the very few to fill this void by providing an integrative assessment of customer, supplier and internal collaborations and their impact on both radical and incremental innovation.

The mediating effects of HRM practices on the relationship between SCM and SMEs firm performance in Thailand

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siriwan Kitchot ◽  
Sununta Siengthai ◽  
Vatcharapol Sukhotu
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Content Type ◽  
Hrm Practices ◽  
Expert Opinions ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to investigate the relationships among supply chain management (SCM) implementation, human resource management (HRM) practices and small- and medium-sized enterprises (SMEs) firm performance in Thailand. It further examines whether HRM practices have a mediating effect on such relationship. Design/methodology/approach A survey instrument was developed based on the literature review which then was verified by SCM expert opinions. Cross-sectional surveys of sample employees of SMEs in Thailand were undertaken by both direct and mail surveys. Of about 779 questionnaires distributed, 203 usable questionnaires were returned. Structural equation modeling (SEM) was performed to analyze the obtained data. Findings The statistical results reveal that SCM indirectly improves firm performance of small- and medium-sized firms through HRM practices. The latter, HRM practices, is found to fully mediate the impact of SCM implementation on SME firm performance. These results suggest that SCM cannot enhance SME firm performance if its implementation is undertaken without effective HRM practices. Originality/value This study identified the research gap in SCM areas by recognizing the scarcity of research on SCM in SMEs and by identifying and integrating HRM practices as a significant behavioral support system to SCM implementation in SMEs. Its results reveal that HRM practices fully mediates the impact of SCM on SMEs’ firm performance.

How Industry 4.0 technologies and open innovation can improve green innovation performance?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Faraz Mubarak ◽  
Suman Tiwari ◽  
Monika Petraite ◽  
Mobashar Mubarik ◽  
Raja Zuraidah Raja Mohd Rasi
Keyword(s):  
Open Innovation ◽  
Industry 4.0 ◽  
Manufacturing Firms ◽  
Innovation Performance ◽  
Equation Modeling ◽  
Green Innovation ◽  
Content Type ◽  
The Impact ◽  
Innovation Behavior

PurposeThis study investigates the impact of Industry 4.0 technologies on green innovation performance. In this relationship, the mediating role of green innovation behavior is also studied. Moreover, open innovation is tested as a mediator between Industry 4.0 technologies and green innovation behavior.Design/methodology/approachA quantitative research method is adopted in which a structured questionnaire was used to collect data from 217 manufacturing firms of Malaysia. After collecting data, the partial least squares-structural equation modeling (PLS-SEM) technique is applied to analyze data and test the hypothesis of study.FindingsIt is found that Industry 4.0 positively impacts open innovation which leads to green innovation behavior. Also, the former lays positive impact on green innovation behavior which leads to improve green innovation performance.Research limitations/implicationsThe authors conclude that Industry 4.0 technologies can play an important role to improve green innovation performance of Malaysian manufacturing firms by managing open innovation for green innovation behavior which further improves the green innovation performance. In this context, it is recommended that strategists and policymakers should undertake the role of open innovation and Industry 4.0 technologies to promote environment-friendly innovations and to promote the green behavior in companies. The authors suggest hereby that firms should be given incentives to adopt and utilize Industry 4.0 technologies and collaborative innovation interactions – as they foster a climate for sustainable green innovations (which is also a key component to achieve competitive advantage) and a growing concern nowadays.Practical implicationsFirst of all the research contributes to achieving the broader of United Nations to promote sustainable innovation through green innovations. Moreover, the companies can also incorporate the findings and insights of this study while devising their policies to foster green innovations.Originality/valueThis research has done the novel contribution by bridging the gap between open innovation approach and sustainability fields while promoting green innovations in small and medium enterprises (SMEs). These two research fields are rarely studied in previous studies by focusing open innovation particularly. Hence, the authors suggest researchers to undertake these fields to further enhance the level of scholarship between innovation management and sustainability. Also, the authors recommend considering technological orientation and technological absorptive capacity of firms to improve green innovations. The current study has investigated the SMEs perspective in general irrespective to their sectoral differences, thus, for future researchers the authors suggest investigating the sector-wise comparison, i.e. electrical and electronics sector, chemical sector, etc.; or service and manufacturing sector differences.

The impact of collaborative engagement on knowledge and performance gains in episodic collaborations

2014 ◽  
Vol 25 (2) ◽  
pp. 245-269 ◽  
Author(s):  
Nancy W. Nix ◽  
Zach G. Zacharia
Keyword(s):  
Structural Equation ◽  
Equation Modeling ◽  
Structured Interviews ◽  
Ancillary Benefits ◽  
Content Type ◽  
Empirical Survey ◽  
Collaborative Engagement ◽  
Relational Outcomes ◽  
The Impact ◽  
Ancillary Benefit

Purpose – Supply chains are embedded in a larger network of enterprises where firms exchange offerings, often compete for the same customers, and constantly innovate to improve their performance. In these dynamic environments, firms are increasingly dependent on the knowledge and expertise in external organizations to innovate, problem-solve, and improve performance. Firms are increasingly collaborating to exchange and pool skills and knowledge and deploy resources and capabilities not found in their own firm. This research using both structured interviews and survey data seeks to determine what are the direct benefits and the ancillary benefits of collaboration. The paper aims to discuss these issues. Design/methodology/approach – A mixed methodology approach was utilized, using qualitative structured interviews leading to developing a research model and then an empirical survey of 473 participants who are involved in their respective organization's collaboration projects. The data were analyzed using structural equation modeling to examine relationships between collaborative engagement, knowledge gained, operational outcomes and relational outcomes. Findings – The results of the study indicate that collaborative engagement has a direct effect on knowledge gained, operational outcomes and relational outcomes in collaboration. The ancillary benefit of collaboration is the learning that takes place leads to improved operational outcomes and relational outcomes. Research limitations/implications – In this research study all the constructs are only examined from a single perspective. This can be a limitation as it would be of greater value to collect data from all the members involved in the collaboration. Originality/value – Collaboration has been well studied in many fields but this research suggests an important ancillary benefit that needs to be considered when deciding to collaborate is the knowledge and learning that happens during a collaboration.

Sign in / Sign up

Export Citation Format

Share Document