Effect of network embeddedness on innovation performance of small and medium-sized enterprises The moderating role of innovation openness
Effect of network embeddedness on innovation performance of small and medium-sized enterprises The moderating role of innovation openness
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Date
2019-07-17
Authors
Courage, Simon Kofi Dogbe
Wisdom, Wise Kwabla Pomegbe
Sampson, Ato Sarsah
Charles, Oduro Acheampong Otoo
Journal Title
Journal ISSN
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Publisher
ournal of Strategy and Management
Abstract
– The purpose of this study was to identify if network embeddedness and innovation performance
relationship, which has been largely studied in multinational enterprises (MNEs) and large corporations, was
also applicable in the context of small and medium-sized enterprises (SMEs). Secondly, the authors also sought
to identify the moderating role of innovation openness in the relationship between network embeddedness and
SMEs’ innovation performance.
Design/methodology/approach – Empirical analysis was based on 388 SMEs in Ghana. Various validity
and reliability checks were conducted before the presentation of the actual analysis, which was conducted
using the structural equation modeling in Amos (v.23).
Findings – Findings revealed that, in the context of SMEs, network embeddedness had significant positive
effect on innovation performance. The authors further identified that SMEs with both high levels of network
embeddedness and innovation openness had a much higher performance in their innovation, compared to
SMEs that relied solely on network embeddedness.
Research limitations/implications – The current study found innovation openness to further strengthen
the relationship between network embeddedness and SMEs’ innovation performance. The relationship
between network embedded and SME’s innovation could, however, be mediated by knowledge transfer
mechanisms, so future studies should pay particular attention to the mediating mechanisms.
Practical implications – Management of SMEs is advised to develop conducive organizational structures,
such as trust, openness to collaboration and so on, for effective innovative knowledge transfer and
transformation.
Originality/value – Past research studies on network embeddedness and innovation performance have
dominantly resided in MNE and large corporations. This current study extends the body of knowledge by
extending the network embeddedness and innovation performance research studies to SME contex
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Citation
Dogbe, C. S. K., Tian, H., Pomegbe, W. W. K., Sarsah, S. A., & Otoo, C. O. A. (2020). Effect of network embeddedness on innovation performance of small and medium-sized enterprises: The moderating role of innovation openness. Journal of Strategy and Management, 13(2), 181-197.