scholarly journals Does open innovation apply to China? Exploring the contingent role of external knowledge sources and internal absorptive capacity in Chinese large firms and SMEs

2015 ◽  
Vol 21 (5) ◽  
pp. 594-613 ◽  
Author(s):  
Fang Huang ◽  
John Rice ◽  
Nigel Martin
Keyword(s):  
Absorptive Capacity ◽  
Emerging Economies ◽  
Open Innovation ◽  
Small Firms ◽  
Large Firm ◽  
Small And Medium Enterprises ◽  
Knowledge Sources ◽  
Research Institutes ◽  
Medium Enterprises

AbstractWhile ‘open innovation’ is often considered to be an organisational strategy with universal application, its generalisability and applicability to organisations operating within emerging economies has yet to be fully explored. This study provides empirical evidence of its importance within a substantial sample of Chinese large firms and small and medium enterprises. Using Tobit regression analysis, our findings indicate that external knowledge sources from inter-firm networking are more important in creating the benefits of open innovation for Chinese small and medium enterprises than their larger peers. Linkages to university and research institutes generally have few direct effects on the innovation performance of both large and small firms in China. However, the role of universities and research institutes is shown to be important among our large firm sample when combined with evident internal absorptive capacity. This interaction is generally limited to our large firm sample, and is not as evident among small firms.Our study indicates that the barriers to the adoption of open innovation by Chinese firms might be largely related to the comparatively weak domestic research expertise and limited organisational absorptive capabilities, with this most particularly evident for small and medium enterprises.These findings suggest that, based on this evidence, there is no need for emerging economies like China to mimic the emergence path from closed to open innovation followed by developed countries. Chinese firms will be more likely to garner the benefits available from openness when they develop the capabilities required to identify, assimilate and commercialise knowledge and technologies obtained from external sources.

scholarly journals The Effect of External Knowledge Sources on Organizational Innovation in Small and Medium Enterprises in Germany

2021 ◽  
Vol 12 (1) ◽  
pp. 60-79
Author(s):  
Shoaib Abdul Basit
Keyword(s):  
Private Sector ◽  
Small Firms ◽  
Organizational Innovation ◽  
Small And Medium Enterprises ◽  
Knowledge Sources ◽  
Community Innovation Survey ◽  
External Knowledge ◽  
Medium Enterprises ◽  
External Actors ◽  
The Impact

Abstract Background: Firms increasingly depend on external actors for the process of generating innovation. Interaction with these actors might occur through an official collaboration agreement or via external actors as the source of information. Objectives: Although open innovation has received more attention, still less is known about its effect on organizational innovation. To fill this gap, this study investigates the impact of various external knowledge sources on the willingness of small and mediumsized enterprises to introduce organizational innovation. Methods/Approach: To achieve the proposed objective, the German Community Innovation Survey conducted in 2017 is used for the econometric analysis. Results: Different external sources of knowledge are relevant for the introduction of organizational innovation in small firms (customers in the private sector, competitors, conferences, and crowdsourcing) compared to medium-sized firms (customers in the private sector and industry associations). Conclusions: External knowledge sources are more important for small firms compared to medium firms, and those small firms are more likely to use various sets of external knowledge.

The nexus between entrepreneurial orientation and performance: enabling roles of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismail Raisal ◽  
Arun Kumar Tarofder ◽  
Aboobucker Ilmudeen
Keyword(s):  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Medium Enterprises

PurposeDeveloping countries’ economic growth very much depend on the successful performance of entrepreneurial-oriented firms. Entrepreneurial orientation (EO) is a valuable conjecturer of firm success. This study mainly focuses on analyzing the effect of EO on the firm performance (FP) with the mediating role of absorptive capacity (ACAP).Design/methodology/approachTo test the hypothetical model, we collected 226 valid responses from senior managers of small and medium enterprises (SMEs). The structural equation modeling technique is performed and research hypotheses are validated.FindingsThe findings show that the strong causal relations exit between EO, ACAP and FP. In brief, EO was found to be a predictor of ACAP, and ACAP has a strong positive impact on FP. Moreover, ACAP substantiated to be a mediator between EO and FP.Research limitations/implicationsA notable ramification of this finding is that for SMEs to enhance their performance via EO, the presence of ACAP as a mediator is essential.Practical implicationsThe findings of this study can be used as a basis to consider EO to increase firms' level of ACAP and to enhance FP. As a whole, the findings offer pragmatic insights for SMEs and pertinent stakeholders.Originality/valueSo far, little is known about the interrelationship between EO, ACAP and FP. Importantly, the mediating role of ACAP between EO and FP has remained unexplored. This study fills this gap in the existing literature.

AN OPEN INNOVATION ECOSYSTEM FROM A STARTUP’S PERSPECTIVE

2019 ◽  
Vol 23 (08) ◽  
pp. 1940001
Author(s):  
IZABELLA BERECZKI
Keyword(s):  
Open Innovation ◽  
Small And Medium Enterprises ◽  
Point Of View ◽  
Innovation Ecosystem ◽  
The Road ◽  
Study Approach ◽  
Research Gap ◽  
Medium Enterprises

Being embedded in an open innovation (OI) ecosystem can be the road to success for startups. In order to survive and become competitive, they must collaborate with external partners. Not only could large corporations be suitable partners, but innovation with small and medium enterprises (SMEs) can be constructive and fruitful as well. Furthermore, accelerators, incubators and other institutions can offer value to startups. Despite this fact, little attention has been paid to startups and SMEs embedded in OI ecosystems, especially from their point of view. The aim of this paper is to fulfil this research gap and deliver empirical data about the benefits and challenges of an OI ecosystem orchestrated by a startup and to investigate the potential role of an SME in these ecosystems. To answer the research questions, a case study approach was used.

Identifying the focal role of top management paradoxical cognition in ambidextrous firms

2018 ◽  
Vol 56 (1) ◽  
pp. 47-63 ◽  
Author(s):  
Aparna Venugopal ◽  
Krishnan T.N. ◽  
Manish Kumar
Keyword(s):  
Emerging Economies ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Hierarchical Regression ◽  
Top Management ◽  
Organizational Ambidexterity ◽  
Upper Echelons ◽  
Content Type ◽  
Behavioral Integration ◽  
Medium Enterprises

Purpose Past studies have associated top management’s paradoxical cognition and actions with the ambidextrous performance of firms. Compared to large firms, the top management members of small firms play a focal role in resolving the paradoxical tensions of explorative and exploitative innovation strategies. Anchored in the upper echelons perspective, the purpose of this paper is to explore the influences of two top management team (TMT) processes on organizational ambidexterity: TMT behavioral integration and TMT involvement in small and medium enterprises (SMEs). Design/methodology/approach The research is set in the context of 78 hi-tech SMEs across IT, biotech, and electronics industry. Multiple responses were collected from each firm. The authors used hierarchical regression analysis to test the hypotheses. Findings The findings from this paper demonstrate that the process of TMT behavioral integration enhances organizational ambidexterity. However, the results show that neither the top management’s involvement, nor the interaction of the top management’s involvement with the behavioral integration of a TMT, enhances organizational ambidexterity. Research limitations/implications The limited examination of two TMT processes has restricted the scope of this paper. The study has also been unable to measure paradoxical cognition in the TMT objectively and without proxy measures. Originality/value The results from this study add to the existing literature on paradoxical cognition, ambidexterity, and behavioral integration. The results from this study also lend support to the upper echelons perspective. Further, the findings from this paper present significant practical implications by throwing light on the senior team processes necessary for small ambidextrous firms in emerging economies. The volatile and rather unpredictable nature of emerging economies underscore the relevance of examining the facilitating conditions of small ambidextrous firms in these countries.

Evaluating the network's value creation and its dependence on absorptive capacity and social capital factors

2006 ◽  
Vol 6 (2) ◽  
pp. 133-154 ◽  
Author(s):  
Giuseppina Passiante ◽  
Valentina Ndou
Keyword(s):  
Social Capital ◽  
Absorptive Capacity ◽  
Value Creation ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Network Models ◽  
Network Systems ◽  
Learning Capability ◽  
Real Value ◽  
Medium Enterprises

Networks are assumed to enhance small firms' performance and competitiveness. Research indicates that there are various sources of value that could derive from networks, such as cost and time efficiency, quality improvement, flexibility and innovation. However, in most cases these values are associated with a general framework of what Information Communication Technologies (ICT) and network models are supposed to offer to small and medium enterprises (SMEs) and their participating actors. Little empirical research has focused on the real value that participating firms can appropriate and create. Based on an empirical study involving SMEs, this paper analyses the value that SMEs can create and/or appropriate by participating in networks and the extent to which value creation depends on factors such as absorptive capability and social capital. This study demonstrates that SMEs can create and appropriate a great deal of value when they become an integral part of network systems. However, factors such as absorptive capacity and social capital need to be taken into consideration, since they greatly impact and affect the capability of firms to create and appropriate value. It is argued that in order to create and appropriate value through networks, they need to emphasize knowledge assimilation and sharing as well as creating continuous learning capability.

Human capital and export performance of small and medium enterprises in Pakistan

2020 ◽  
Vol 47 (5) ◽  
pp. 643-662 ◽  
Author(s):  
Muhammad Shujaat Mubarik ◽  
Evelyn S. Devadason ◽  
Chandran Govindaraju
Keyword(s):  
Human Capital ◽  
Absorptive Capacity ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Export Performance ◽  
Content Type ◽  
Different Dimensions ◽  
Medium Enterprises ◽  
The Relationship

PurposeThis study examines the influence of human capital, overall and by dimensions, on the export performance of small and medium enterprises (SMEs) in the manufacturing sector of Pakistan. The study also investigates the role of absorptive capacity in the relationship between human capital dimensions and export performance.Design/methodology/approachData from 586 manufacturing sector SMEs were collected for analysis. The study applied covariance-based structural equation modeling (SEM) to estimate the hypothesized relationships.FindingsAs a whole, human capital was found to exert a direct and indirect impact on export performance, particularly for the medium-sized firms and for firms with medium to high levels of export intensities. Nevertheless, not all dimensions of human capital mattered for export performance. Education and training were found to pose the greatest influence on export performance of those firms.Research limitations/implicationsThe results suggest that when devising appropriate policies for SMEs, the impact of different dimensions of human capital need to be considered for addressing challenges related to the internationalization of firms. In short, developing the right human capital is essential for SMEs to compete at the international level.Originality/valueUnlike previous studies, this study decomposed the influence of different dimensions of human capital on export performance and assessed the mediating role of absorptive capacity. The study is also among the pioneering studies in SMEs sector of Pakistan to analyze the role of absorptive capacity in the relationship between various dimensions of human capital and export performance.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2019-0198

OPEN INNOVATION NETWORKS: THE ROLE OF INNOVATIVE MARKETPLACES FOR SMALL AND MEDIUM ENTERPRISES' VALUE CREATION

2011 ◽  
Vol 08 (03) ◽  
pp. 437-453 ◽  
Author(s):  
VALENTINA NDOU ◽  
PASQUALE DEL VECCHIO ◽  
LAURA SCHINA
Keyword(s):  
Value Creation ◽  
Open Innovation ◽  
High Performance ◽  
Small And Medium Enterprises ◽  
Dynamic Environment ◽  
Innovation Networks ◽  
New Paradigm ◽  
Innovation Approach ◽  
Medium Enterprises

The article is focused on the explanation of the benefits of an open innovation approach in order to drive small and medium enterprises within the actual dynamic environment. In particular, the article gives evidence of the capability of the new paradigm in enabling innovative patterns of growth and development, especially for the small segment, not able to overpass a lot of constraints for achieving high performance by itself. We argue that firms' innovation can be carried out through open innovation platforms, in which they will grasp the most important benefits and opportunities in order to catch the value creation.

scholarly journals Open Innovation in SMEs: Potential and Realized Absorptive Capacity for Interorganizational Learning in Dyad Collaborations with Academia

2019 ◽  
Vol 5 (3) ◽  
pp. 72 ◽  
Author(s):  
Grover Avalos-Quispe ◽  
Luis Hernández-Simón
Keyword(s):  
Absorptive Capacity ◽  
Open Innovation ◽  
Small And Medium Enterprises ◽  
Research Unit ◽  
Joint Research ◽  
Complex Dimension ◽  
Sources Of Knowledge ◽  
New Knowledge ◽  
External Sources Of Knowledge ◽  
Medium Enterprises

Due to a variety of barriers to develop innovation, small and medium enterprises (SMEs) find it necessary to collaborate with external sources of knowledge. The current study analyses the collaboration between SMEs and academia over an open innovation setting in Mexico. An absorptive capacity (ACAP) approach has been applied to understanding the process of developing new knowledge for achieving innovation. A two-part questionnaire was developed with the aim of assessing the ACAP of a new joint research unit. Data was collected from a local group of SMEs that collaborated as dyads with academia supported by a government program of innovation in Mexico. The result shows that there was a moderate potential and realized ACAP in the sample; these results are mutually related with both parts of the questionnaire which supports our findings. In conclusion, exploitation of new knowledge is a complex dimension for creating value from collaboration, which makes the outcome difficult to measure using traditional means. It can be argued that exploiting new knowledge for innovation is an iterative process of learning when exploring new sources of knowledge from academia.

Dimensional Impact of Social Capital on Financial Performance of SMEs

2020 ◽  
Vol 29 (1) ◽  
pp. 38-52
Author(s):  
Ishaq Ahmad Dar ◽  
Mridula Mishra
Keyword(s):  
Social Capital ◽  
Financial Performance ◽  
Social Relations ◽  
Emerging Economies ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Primary Data ◽  
Four Dimensions ◽  
Medium Enterprises ◽  
The Impact

In emerging economies, small and medium enterprises (SMEs) contribute a sizeable proportion of exports and manufacturing output, and millions of people are provided employment. Entrepreneurs and these small firms are influenced by many contextual factors in their operations. Social capital factors, both formal and informal social networks, are considered influential to their performance. This study uses regression analysis to study the impact of social capital dimensions on financial performance of SMEs. Primary data were collected through survey of SMEs of India. It was found that out of five social capital dimensions only four dimensions, such as complicity, status, social relations and personal relations, positively impact the financial performance of SMEs, whereas one dimension ‘Interlinking and family support’ had no significant impact on financial performance of SMEs. The implications of these findings are discussed.

scholarly journals What Prompts Small and Medium Enterprises to Implement CSR? A Qualitative Insight from an Emerging Economy

2021 ◽  
Vol 13 (2) ◽  
pp. 952 ◽  
Author(s):  
Zengming Zou ◽  
Yu Liu ◽  
Naveed Ahmad ◽  
Muhammad Safdar Sial ◽  
Alina Badulescu ◽  
...  
Keyword(s):  
Emerging Economies ◽  
Developing Economies ◽  
Small And Medium Enterprises ◽  
Customer Behavior ◽  
Policy Makers ◽  
Management Commitment ◽  
Top Management Commitment ◽  
Medium Enterprises ◽  
Corporate Social ◽  
Depth Interviews

The topic of corporate social responsibility (henceforth referred to as CSR) has been a central topic during the last decade, but the majority of the existing literature discusses CSR relationship with large organizations. Whereas, its contribution in small and medium enterprises (henceforth referred to as SME) sector has received little attention. There have been some studies that focused on CSR activities in SME sector quantitatively in the context of developing economies like Pakistan, but the fact is, to date, SME sector of Pakistan is not participating actively in CSR-related activities due to some constraints. The present study is a pioneer attempt, to explore CSR barriers that restrict SME sector of Pakistan from practicing CSR initiatives. For this reason, the present study explores these barriers qualitatively in order to gain in-depth knowledge of different CSR barriers. In doing so, we conducted semi-structured in-depth interviews from 9 SMEs in Lahore city of Pakistan. We performed thematic analysis, which produced five relevant themes of CSR barriers, including: Lack of resources, lack of regulations, lack of top management commitment, lack of CSR knowledge, and passive customer behavior. Our analysis further showed that lack of resources is the most related barrier that hinder SMEs to be engaged in CSR activities. This paper contributes to CSR literature in emerging economies’ context. Through an increased awareness of barriers, policy makers and practitioners may take necessary steps to improve CSR practices in SMEs.

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