INNOVATION COLLABORATIONS IN LOW-TO-MEDIUM TECH SMEs: THE ROLE OF THE FIRM’S INNOVATION ORIENTATION AND USE OF EXTERNAL INFORMATION

2019 ◽  
Vol 23 (02) ◽  
pp. 1950011 ◽  
Author(s):  
OUAFA SAKKA ◽  
JOSÉE ST-PIERRE ◽  
MOUJIB BAHRI

This study articulates and tests the direct and indirect relationships between the company’s innovation orientation (IO), its collection and dissemination (C&D) of external information among the organisational members, and the level of success of its innovation collaborations involving customers, suppliers, and research organisations. Our conceptual framework is developed based on an integration of the literatures on organisational capabilities, marketing, innovation, and management control. We empirically test these relationships on a sample of 117 small-to-medium enterprises (SME) operating in Low-to-Medium-Tech (LMT) manufacturing industries. Partial Least Squares (PLS) results reveal that the relationship between the firm’s IO and the success of its customer collaborations is partially mediated by the C&D of external information. We also find that the relationship between the firm’s IO and the success of supplier collaborations is direct, and that the C&D of external information has no effect on the success of such collaborations. Finally the relationship between IO, C&D of external information and the success of research organisation collaborations is found to be indirect. Overall, these findings suggest that developing successful innovation collaborations in LMT sectors requires that SME managers start by building an internal culture that promotes innovation, learning and openness to the external environment.

2019 ◽  
Vol 30 (5) ◽  
pp. 876-896 ◽  
Author(s):  
Yingjie Shi ◽  
Xuechang Zhu ◽  
Shuaishuai Zhang ◽  
Yu Lin

Purpose The purpose of this paper is to examine the existence of operational stickiness, and explores the relationship between operational stickiness and the likelihood of survival. Furthermore, the authors investigate this relationship in different manufacturing industries. Design/methodology/approach Using a large sample of more than 200,000 new manufacturing small and medium enterprises between 2000 and 2013 in China, the authors use the survival analysis method to investigate the non-linear relationship between operational stickiness and the likelihood of survival. Findings The authors demonstrate the existence of operational stickiness, such as inventory stickiness, property, plant, and equipment (PPE) stickiness, and labor stickiness. Next, the authors find the inverted U-shaped relationship between operational stickiness and the likelihood of survival. Furthermore, the authors document the differential effect of operational stickiness on the likelihood of survival in different industries. Practical implications Managers can improve the firm’s likelihood of survival by maintaining a moderate inventory stickiness and PPE stickiness. However, managers should not adopt sticky labor management in manufacturing industries. Originality/value This paper may be the first study to demonstrate the existence of operational stickiness, and confirm the inverted U-shaped relationship between operational stickiness and the likelihood of survival.


2018 ◽  
Vol 33 (5) ◽  
pp. 693-705 ◽  
Author(s):  
F. Javier Ramirez ◽  
Gloria Parra-Requena ◽  
Maria J. Ruiz-Ortega ◽  
Pedro M. Garcia-Villaverde

Purpose This paper aims to further understand how firms transform external information into marketing innovation. The specific aim is to analyse the mediating role of product innovation and organizational innovation in the relationship between external information and marketing innovation. Design/methodology/approach The study builds on the 2012 database Technological Innovation Panel (PITEC) with a sample of 994 manufacturing firms. The data are analysed using partial least squares structural equation modelling (PLS-SEM). Findings The results show how external information obtained about relationships with suppliers, customers and competitors leads to marketing innovation. The study demonstrates the mediating effects of product innovation and organizational innovation on the relationship between external information and marketing innovation. Practical implications Firms should utilize external information flows to innovate in both their products and organization as a prerequisite to marketing innovation. Originality/value This paper provides linkages between perspectives of networks, innovation and marketing to better understand the background of the least studied dimension of innovation – marketing innovation. The main contribution is to explain how firms use external information to achieve marketing innovation through product and organizational innovation.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qiang Lu ◽  
Jinliang Chen ◽  
Hua Song ◽  
Xiangyu Zhou

Purpose The purpose of this study is to examine how cloud computing assimilation reduces supply chain financing (SCF) risks of small and medium enterprises (SMEs). This study also investigated the mediating roles of internal and external supply chain integration between cloud computing assimilation and the SCF risks of SMEs, as well as the moderating role of environmental competitiveness. Design/methodology/approach Data was collected from surveys of SMEs located in China. Multiple regression analysis was used to validate the proposed theoretical model and research hypotheses. Findings The findings show that cloud computing assimilation could reduce the SCF risks of SMEs directly. The results also indicate that both internal and external supply chain integration mediate the relationship between cloud computing assimilation and SCF risks. Furthermore, environmental competitiveness inhibits the effects of cloud computing assimilation on SCF risks. Originality/value To our best knowledge, this is the preliminary study to explore the role of cloud computing assimilation in reducing the SCF risks of SMEs. Also, this study attempted to investigate the process by which cloud computing assimilation affects the SCF risks of SMEs.


Innovar ◽  
2015 ◽  
Vol 25 (58) ◽  
pp. 23-36 ◽  
Author(s):  
Magdalena Cordobés Madueño ◽  
Pilar Solde

There is great interest in the role of management control on theoretical and practical developments within the field of Inter-organizational Relations. This research aims to contribute at verifying how relationships between firms affect the management control tools used, as illustrated in a specific case: the relationship between the franchisor and its franchisees, which has not received much attention to date. As indicated by previous research, case studies can be helpful to determine the factors affecting the type of management control tools that should be established to manage inter-firm relationships.Results have found that the franchisor uses quantitative control mechanisms in order to avoid common types of opportunistic franchise behavior related to royalty payments and other financial requirements, as well as qualitative tools to assure the fulfilment of agreement-related conditions regarding knowhow, to resolve unexpected non-economic problems and to encourage personal relationship and trust. This study also provides an outline on franchisor-franchisee relationships in the model proposed by Van der Meer-Kooistra and Vosselman (2000). To test this model, the franchisor's perspective (outsourcer) has been taken into account as performed when building the model. Findings indicate that this relationship shows many similarities to the pattern based on bureaucracy and a few similarities to patterns based on trust.


2021 ◽  
Vol 14 (1) ◽  
pp. 207-224
Author(s):  
Dhiona Ayu Nani ◽  
Vera Apri Dina Safitri

Manuscript type: Research paper Research aims: This study aims to examine the relationship between the formal management control system (MCS) on organisational performance and innovation. It also evaluates the role of leadership characteristics as the moderating variable between MCS and innovation. Design/Methodology/Approach: This study employs a survey questionnaire, and data collected from business units of Indonesian manufacturing and services firms. The warp partial least squares structural equation modeling (PLS-SEM) approach was employed to analyse the data and test the proposed model. Research findings: The findings demonstrate that: (1) A welldesigned formal MCS can improve organisational performance and innovation; (2) managers with good characteristics such as showing good behaviour through compliance with company rules, involving themselves in subordinates’ activities, and supporting subordinates’ ideas, can improve subordinates’ creativity in producing innovation. Theoretical contribution/Originality: This study expands the existing literature by examining the role of leadership characteristics as a moderating variable between the formal management control system (MCS) and innovation. Practitioner/Policy implications: The findings of this study demonstrate that, for Indonesian firms to compete in globally-competitive markets, they need to implement well-designed formal MCS. For formal MCS to contribute to innovation, managers who demonstrate good leadership characteristics are crucial. Research limitation/Implications: Future research can investigate comparative analyses of different ASEAN countries since different Asian countries have different dominant cultures and values, which may have some impact on MCS, organisational performance and innovation. It may also consider how different types of MCS improve organisational performance and innovation performance.


2021 ◽  
Vol 18 (2) ◽  
pp. 210
Author(s):  
I Wayan Widnyana ◽  
I Made Dauh Wijana ◽  
Almuntasir Almuntasir

Indonesia's small and medium enterprises (SMEs) are considered the backbone of the national economy. However, the fact that SMEs still contribute less to the national gross domestic product (GDP) in terms of value-added, need to be addressed. While previous studies mainly focused on financial (access) constraints as one of the major constraints faced by small enterprises which affect their growth and performances, this study aims to extend the relationship between capital and financial performance of Indonesia SMEs with the moderating effect of financial constraints and partners. This study is different from others as it uses a bigger panel dataset which is about 4.36 million SMEs in Indonesia and is the first to explore the role of financial partners comprehensively. Moreover, the panel regression model with geographic analysis unit uses as a data analysis method. The results of the study show that financial capital has a positive and significant effect on the financial performance of SMEs. Furthermore, while the moderation role of financial partners on the relationship between financial capital and financial performance of Indonesia SMEs was failed to prove, the negative moderation effect of financial constraints was able to prove in this study.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shafique Ur Rehman ◽  
Hamzah Elrehail ◽  
Abdallah Alsaad ◽  
Anam Bhatti

PurposeThis study explores central questions related to the connection between intellectual capital (IC) and the innovative performance of organizations through the mediating role of management control systems (MCS) and business strategies, as well as the moderating role of innovation capabilities.Design/methodology/approachThe data was collected from the managers of small and medium enterprises (SMEs) through a structured questionnaire. Out of 1,152 questionnaires distributed, only 415 were used for analysis purposes. Structural equation modelling (SEM) was used to test the study hypotheses.FindingsIntellectual capital significantly influences MCS, business strategies and innovative performance. Moreover, MCS, business strategies and innovative capabilities significantly improve innovative performance. MCS and business strategies significantly mediate the relationship between intellectual capital and innovative performance. Finally, innovative capabilities significantly moderate that between intellectual capital and innovative performance.Practical implicationsThe current research examines how management should use MCS, business strategies, and innovative capabilities to take maximum benefit from intellectual capital in order to improve innovative performance.Originality/valueThis is pioneering research that develops a theoretical model to incorporate intellectual capital, MCS, business strategies, innovative capabilities and innovative performance. Even though the influence of various kinds of intangible assets/resources on innovative performance has been widely examined in the literature, scant attention has been paid to the role of MCS, business strategies, and innovative capabilities in leveraging the firm's intellectual capital.


2020 ◽  
Vol 6 (4) ◽  
pp. 155
Author(s):  
Nagwan AlQershi ◽  
Sany Sanuri Mohd Mokhtar ◽  
Zakaria Bin Abas

Customer Relationship Management (CRM) is more than an information tool and plays a critical role in small and medium enterprises (SMEs). The present study explored the moderating effect of relational capital (RC) on the relationship between CRM dimensions and the performance of 284 Yemeni manufacturing SMEs. Partial Least Squares-Structural Equation Modelling (PLS-SEM) was used to test the study’s hypotheses. Results indicate that only three of the CRM dimensions have a significant effect on performance. The moderating effects of relational capital on this relationship were also examined and were found to be significant for only two CRM dimensions: technology-based CRM and CRM organization. Key customer focus and CRM knowledge management had no effect. The findings of this study offer important insights for owners and managers of SMEs, researchers, and policymakers to further understand the effects of relational capital and CRM on SMEs’ performance. SMEs should be encouraged to develop their CRM and relational capital to improve their performance.


2006 ◽  
Vol 19 (1) ◽  
pp. 29-48 ◽  
Author(s):  
Dianne H. B. Welsh ◽  
Peter Raven

The Middle East is a growing, lucrative marketplace that has recently captured the interest of the world for political as well as economic reasons due to the War in Iraq, which began in 2003. This exploratory study examines the relationship between retail small/medium enterprises (SMEs) that are family business owned, organizational commitment, and management and employee perceptions of customer service on a number of dimensions. The results suggest that managers and employees of family-owned businesses in the Middle East behave in ways similar to those in Western countries; however, there are differences, probably related to cultural characteristics. The Middle East is a richly diverse region, a myriad of unique cultures. As the market becomes more sophisticated, the importance of service quality increases. Global retailers can benefit from this study by better understanding the managers and employees in the region and the pivotal role of the family on business. Implications for practice are discussed.


2019 ◽  
Vol 30 (1) ◽  
pp. 1 ◽  
Author(s):  
Garrett Upstill

This paper addresses the manner in which the Commonwealth Scientific and Industrial Research Organisation (CSIRO) transferred its technology to Australian industry during the period 1949 to 1979. The analysis is framed within the changing economic and political scene in Australia and the changing expectations for public research organisations such as CSIRO. During the 1950s and 1960s CSIRO gave little direct attention to the processes of technology transfer but instead, following the prevailing wisdom, focused on high quality science and relied on existing extension services and patenting to capture the benefits from its research. This ‘science-push’ approach proved successful for Australia’s rural industries but, with a few exceptions, less so for the country’s secondary industries. By the early 1970s CSIRO faced pressures for change, induced by a tougher economic climate and changing views on the role of public research institutions. A shift toward greater customer relevance in its research would also need to be matched by new thinking about technology transfer.


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