SMEs innovation capabilities and export performance: an entrepreneurial orientation view

doi:10.3846/16111699.2017.1352534

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SMEs innovation capabilities and export performance: an entrepreneurial orientation view

Journal Article•DOI•

SMEs innovation capabilities and export performance: an entrepreneurial orientation view

Cláudia P. Ribau¹, António Carrizo Moreira¹, Mário Raposo²•Institutions (2)

University of Aveiro¹, University of Beira Interior²

27 Oct 2017-Journal of Business Economics and Management (Taylor & Francis)-Vol. 18, Iss: 5, pp 920-934

TL;DR: In this paper, the authors present the impact of a set of internal innovation capabilities on export performance of small and medium-sized firms (smes), with the mediating role of entrepreneurial orientation contingent upon the proactive or reactive behaviour of the firms to external stimuli.

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Abstract: Although there are several studies analysing how innovation capabilities influence export performance, this study aims to present the impact of a set of internal innovation capabilities on export performance of small and medium-sized firms (smes), with the mediating role of entrepreneurial orientation contingent upon the proactive or reactive behaviour of the firms to external stimuli. The study involves the analysis of 147 questionnaire‐based survey of managers from plastic manufacturing smes operating in Portugal that were subjected to a Partial Least Squares-Structural Equation Modelling (PLS-SEM) technique. The results show that proactive firms to external stimuli are not only better at innovating but also their entrepreneurial orientation capabilities underpin a better performance in international markets when compared with firms that react to external stimuli. This study has implications for smes aiming at increasing their export performance and innovativeness. For practitioners the findings of this study should enable smes owner/managers to better understand the possible impacts of innovation capabilities and entrepreneurial orientation on export performance, and thus lead to more effective smes management.

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Journal Article•DOI•

Innovation and business performance for Spanish SMEs: New evidence from a multi-dimensional approach:

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Alfonso Expósito¹, Juan A. Sanchis-Llopis²•Institutions (2)

University of Seville¹, University of Valencia²

19 Jun 2018-International Small Business Journal

TL;DR: In this paper, the impact of product, process and organisational innovations on two alternative dimensions of business performance: finance and operations is examined, and two indicators capture financial performance: cost and revenue.

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Abstract: This article examines the impact of product, process and organisational innovations on two alternative dimensions of business performance: finance and operations. Two indicators capture financial p...

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69 citations

Cites background from "SMEs innovation capabilities and ex..."

...Many SMEs do not engage with internationalisation processes (Ribau et al., 2017)....
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...An increase in sales volume due to exports and/or a higher productive capacity due to imported equipment and intermediate products may improve the performance of internationalised companies (Ramanadi et al., 2017; Ribau et al., 2017)....
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...In addition, several recent studies suggest that self-reported information by managers can be used as an adequate approach to measure business performance and other strategy variables, such as innovation (Foreman-Peck, 2013; Goya et al., 2016; Madrid-Guijarro et al., 2013; Ramanadi et al., 2017; Ribau et al., 2017)....
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...…and other strategy variables, such as innovation (Foreman-Peck, 2013; Goya et al., 2016; Madrid-Guijarro et al., 2013; Ramanadi et al., 2017; Ribau et al., 2017).3 The sampling procedure was designed to represent the structure of the regions following the stratified sampling principles in…...
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Journal Article•DOI•

Retracted: The mediating role of total quality management between entrepreneurial orientation and SMEs export performance

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Muhammad Imran, Azelin Aziz, Siti Norasyikin Abdul Hamid, Muhammad Salman Shabbir, Rabia Salman, Zhaoquan Jian - Show less +2 more

01 Jan 2018-Management Science Letters

TL;DR: In this paper, the mediating role of total quality management (TQM) between entrepreneurial orientation (EO) and SME export performance in the manufacturing sector of Pakistan was investigated.

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Abstract: The purpose of this study was to investigate the mediating role of total quality management (TQM) between entrepreneurial orientation (EO) and SME export performance in the manufacturing sector of Pakistan. This study was originated from the fact that only a few studies have examined on how the firm’s intangible resources and capabilities such as EO and TQM drive SMEs’ export performance. Some questionnaires in Likert scale were used to collect the data and 364 usable responses were received from the owner/managers of exporting SMEs. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used for the data analysis. The findings reveal significant relationship between EO and TQM with SME export performance. Furthermore, this study found the complementary mediating role of TQM between EO and SME export performance of manufacturing sector of Pakistan. This study has implications for owner/managers of SMEs. The results offer a better understanding regarding EO and TQM implementation to SMEs owner / managers. Thus, owner/managers of SMEs can take better decisions for the implementation of TQM practices. Furthermore, to the best of researcher’s knowledge, this study is the first work, which examines Pakistan`s SMEs export performance in association with the TQM as the mediating factor between EO and SME export performance.

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68 citations

Cites background or methods or result from "SMEs innovation capabilities and ex..."

...EO was empirically supported by many studies with SME export performance (Hernandez-Perlines, 2018; Ribau et al., 2017; Thanos et al., 2016) and TQM was found a contributory role in SME export performance (Imran et al....
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...EO was empirically supported by many studies with SME export performance (Hernandez-Perlines, 2018; Ribau et al., 2017; Thanos et al., 2016) and TQM was found a contributory role in SME export performance (Imran et al., 2018)....
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...The significant results of EO with SME export performance is consistent with previous studies (Hernandez-Perlines, 2018; Ribau et al., 2017; Thanos et al., 2016)....
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...The past studies found the positive relationship between EO and SME export performance in a different context (Hernandez-Perlines, 2018; Ribau et al., 2017; Thanos et al., 2016)....
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Journal Article•DOI•

The impact of innovation performance on the competitiveness of the visegrad 4 countries

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Eva Ivanova, Martin Cepel

31 Mar 2018-Journal of Cryptology

TL;DR: In this paper, the authors evaluated the impact of the Visegrad 4 countries' innovation performance on their international competitiveness position observed by the Global Economic Forum based on the Global Competitiveness Index (GCI).

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Abstract: The economic development of world economies accompanied by their growing openness and stronger integration processes put pressure on mutual confrontation of their economic power based on its determinant sources. International comparison requires determining a complex of factors that affect the success of developed economies; factors that, given their multiplier effects, influence the social productivity of labor in a country and create a competitive advantage in an international comparison. A key factor of the states’ increasing competitiveness is assumed to be the innovation performance of enterprises, which is projected through innovative business processes into the innovation performance of the economy as a whole. This paper determines the impact of their innovation performance on their international competitiveness position observed by the Global Economic Forum based on the Global Competitiveness Index (GCI). To assess the impact, the following economic-statistical methods were used: comparative and correlation analyses and logical deduction. Data from the World Economic Forum (WEF), European Innovation Scoreboard (EIS), and Eurostat database were used to process the assessment. The results of the research have led to the conclusion that the Visegrad 4 (V4) countries as transition economies in terms of their economic development are quite similar, but in the ranking of global competitiveness, their position varies depending on the innovative performance. The Czech economy is the best performing of the four, while the worst indicators are attributed to the economies of Slovakia and Hungary. The economy of Poland has a relatively balanced development. The results of these analyses have led to the creation of a discussion platform focused on the evaluation of the innovation potential status and its determinants in Slovakia, with the aim of pointing out critical areas in the country’s competitiveness growth on an international scale.

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59 citations

Cites background from "SMEs innovation capabilities and ex..."

...INTRODUCTION In today’s globalized world, there is an ongoing process of division of labor and changes in labor (Balcerzak, 2016; Peleckis, 2016; Sinicakova & Gavurova, 2017; Ribau et al., 2017), creating an even wider scope for exchange processes and the competitiveness of subjects on the domestic market, but especially on foreign markets....
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...…world, there is an ongoing process of division of labor and changes in labor (Balcerzak, 2016; Peleckis, 2016; Sinicakova & Gavurova, 2017; Ribau et al., 2017), creating an even wider scope for exchange processes and the competitiveness of subjects on the domestic market, but especially…...
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Journal Article•DOI•

The Dependence of Perceived Business Risks on the Size of SMEs

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Mária Hudáková, Matej Masár, Maria Luskova, Milan Robin Patak

31 Dec 2018-Journal of Cryptology

TL;DR: In this article, the authors assess the dependence of perceived key business risks of SMEs on their size in Slovakia based on own empirical research carried out in 2017, and highlight the need to apply risk management in the SMEs and to bring the results of the research in Slovakia closer to world trends.

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Abstract: The issues of risk management in small and medium-sized enterprises (SMEs) have been analysed and discussed for a long time. Nevertheless, it is still necessary to concentrate on this field, especially in the Slovak Republic. SMEs are very sensitive to changes in the business environment which are always reflected in the quantitative characteristics of this sector in a certain time interval. According to various global surveys and studies, risk management represents a significant contribution to the increasing competitiveness of enterprises in changes of the business environment. The aim of this paper is to statistically assess the dependence of perceived key business risks of SMEs on their size in Slovakia based on own empirical research carried out in 2017. The contribution also includes an assessment of key risk sources and an evaluation of the survey results compared to the results of surveys taken last year. Based on the results, market, financial, economic and personnel risks comprise the four most important risks that negatively affect the business environment of SMEs. Dependence perceived by the SME entrepreneurs was found among market factors, personnel risks, and business size. No dependence was found among the financial, economic and business risks. The overall results of the empirical research point to the need and importance of addressing the assessment of key risks and their resources in SMEs in Slovakia. The goal of the paper is to highlight through a relevant study the need to apply risk management in the SMEs and to bring the results of the research in Slovakia closer to world trends.

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49 citations

Cites background from "SMEs innovation capabilities and ex..."

...INTRODUCTION Today, managers are increasingly faced with the responsibility of taking important decisions to ensure prosperity, financial stability and competitiveness under uncertainty and risk conditions (Agarwal & Ansell 2016; Ključnikov & Popesko, 2017; Gumanti et al., 2017; Kliestikova et al., 2017; Ribau et al., 2017; Jankelová et al., 2018; Kliestik et al., 2018; Valaskova et al., 2018)....
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...…to ensure prosperity, financial stability and competitiveness under uncertainty and risk conditions (Agarwal & Ansell 2016; Ključnikov & Popesko, 2017; Gumanti et al., 2017; Kliestikova et al., 2017; Ribau et al., 2017; Jankelová et al., 2018; Kliestik et al., 2018; Valaskova et al., 2018)....
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Journal Article•DOI•

Innovation and export performance: a meta-analytic review and theoretical integration

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Nilay Bıçakcıoğlu-Peynirci, Ayca Kubra Hizarci-Payne, Özge Özgen, Canan Madran

21 Oct 2019-European Journal of Innovation Management

TL;DR: In this article, a meta-analysis of relevant research investigating the association between innovation and export performance is presented. And the results reveal that while there is a significant relationship between innovation activities of companies and their export performance, export strategic performance dimension captures important facets in this relationship.

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Abstract: Since an accumulated body of research has examined the link between innovation and export performance and little attention has been paid to consolidate the existent fragmented findings in the pertinent literature, the purpose of this paper is to systematically integrate empirical findings based on a meta-analysis of relevant research investigating the association between innovation and export performance.,In this research, correlations within individual studies were examined through performing a meta-analysis, which assists to synthesize the entire findings among past individual studies and helps to quantify the aggregated results. In total, 38 articles surveyed 554,227 exporting manufacturing companies were analyzed through a meta-analysis of 145 total effects.,This study demonstrates that innovation is a strategic source to achieve competitive advantage with intent to achieve superior performance in export markets. In this sense, the results reveal that while there is a significant relationship between innovation activities of companies and their export performance, export strategic performance dimension captures important facets in this relationship. Moreover, the results indicate that conceptualization of innovation and the development level of countries moderate the link between innovation and export performance. While output-oriented innovation is more influential on innovation-financial export performance association, the input-oriented innovation is more influential on strategic and market performance.,This present study attempted to synthesize fragmented results examining innovation–export performance link via revealing potential moderators on the association between innovation and export performance and providing important insights for both practitioners and scholars.

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32 citations

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Journal Article•DOI•

Dynamic capabilities and strategic management

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David J. Teece¹, Gary P. Pisano², Amy Shuen³•Institutions (3)

University of California, Berkeley¹, Harvard University², San Jose State University³

01 Aug 1997-Strategic Management Journal

TL;DR: The dynamic capabilities framework as mentioned in this paper analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change, and suggests that private wealth creation in regimes of rapid technology change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm.

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Abstract: The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difftcult-to- trade knowledge assets and complementary assets), and the evolution path(s) it has aflopted or inherited. The importance of path dependencies is amplified where conditions of increasing retums exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding intemally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants. © 1997 by John Wiley & Sons, Ltd.

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27,902 citations

"SMEs innovation capabilities and ex..." refers background in this paper

...Innovative capabilities are recognised as a major driver of firm growth (Teece et al. 1997), which is little explored in the literature on exports among SMEs (Lisboa et al. 2011; Oura et al. 2016)....
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...Capabilities are a set of special assets, skills and knowledge that, over time, become firms’ routines and practices and enable them to use resources efficiently and achieve superior performance (Teece et al. 1997; Guan, Ma 2003; Gunday et al. 2011; Oura et al. 2016)....
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Book•

A primer on partial least squares structural equation modeling (PLS-SEM)

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Joseph F. Hair, G. Tomas M. Hult, Christian M. Ringle, Marko Sarstedt

01 Jan 2014

TL;DR: The Second Edition of this practical guide to partial least squares structural equation modeling is designed to be easily understood by those with limited statistical and mathematical training who want to pursue research opportunities in new ways.

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Abstract: With applications using SmartPLS (www.smartpls.com)—the primary software used in partial least squares structural equation modeling (PLS-SEM)—this practical guide provides concise instructions on how to use this evolving statistical technique to conduct research and obtain solutions. Featuring the latest research, new examples, and expanded discussions throughout, the Second Edition is designed to be easily understood by those with limited statistical and mathematical training who want to pursue research opportunities in new ways.

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13,621 citations

"SMEs innovation capabilities and ex..." refers methods in this paper

...In order to determine the extent of the indirect effect in relation to the total effect we use the variance accounted for (VAF) (Hair et al. 2014)....
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...For testing the mediation effects we followed the procedure proposed by Hair et al. (2014)....
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...As PLS employs bootstrapping to test the significance of relationships, it works well in the analysis of mediation (Hair et al. 2014)....
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...As cthe VAF accounted for is 66.5%, we are before a mediation effect (of EO) between innovation and export performance....
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Journal Article•DOI•

Asymptotic Confidence Intervals for Indirect Effects in Structural Equation Models

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Michael E. Sobel

01 Jan 1982-Sociological Methodology

TL;DR: For comments on an earlier draft of this chapter and for detailed advice I am indebted to Robert M. Hauser, Halliman H. Winsborough, Toni Richards, several anonymous reviewers, and the editor of this volume as discussed by the authors.

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Abstract: For comments on an earlier draft of this chapter and for detailed advice I am indebted to Robert M. Hauser, Halliman H. Winsborough, and Toni Richards, several anonymous reviewers, and the editor of this volume. I also wish to thank John Raisian, Nancy Rytina, and Barbara Mann for their comments and Mark Wilson for able research assistance. The opinions expressed here are the sole responsibility of the author.

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11,160 citations

"SMEs innovation capabilities and ex..." refers methods in this paper

...The Sobel test is a traditional method of testing the significance of mediation effects (Sobel 1982)....
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Journal Article•DOI•

Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance

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G. T. Lumpkin¹, Gregory G. Dess²•Institutions (2)

Northeastern State University¹, University of Texas at Arlington²

01 Jan 1996-Academy of Management Review

TL;DR: In this article, a contingency framework for investigating the relationship between entrepreneurial orientation and firm performance is proposed. But the authors focus on the business domain and do not consider the economic domain.

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Abstract: The primary purpose of this article is to clarify the nature of the entrepreneurial orientation (EO) construct and to propose a contingency framework for investigating the relationship between EO and firm performance. We first explore and refine the dimensions of EO and discuss the usefulness of viewing a firm's EO as a multidimensional construct. Then, drawing on examples from the EO-related contingencies literature, we suggest alternative models (moderating effects, mediating effects, independent effects, interaction effects) for testing the EO-performance relationship.

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8,623 citations

Journal Article•DOI•

Issues and opinion on structural equation modeling

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Wynne W. Chin

01 Mar 1998-Management Information Systems Quarterly

TL;DR: In the past few years, the IS field has seen a substantial increase in the number of submissions and publications using structural equation modeling techniques, which has led some to describe this approach as an example of “a second generation of multivariate analysis”.

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Abstract: In the past few years, the IS field has seen a substantial increase in the number of submissions and publications using structural equation modeling (SEM) techniques. Part of the reason may be the increase in software packages to perform such covariance-based (e.g., LISREL, EQS, AMOS, SEPATH, RAMONA, MX, and CALIS) and componentbased (e.g., PLS-PC, PLS-Graph) analysis. Viewed as a coupling of two traditions -an econometric perspective focusing on prediction and a psychometric emphasis that models concepts as latent (unobserved) variables that are indirectly inferred from multiple observed measures (alternately termed as indicators or manifest variables) -SEM has allowed social scientists to perform path analytic modeling with latent variables (Lvs), which in turn has led some to describe this approach as an example of “a second generation of multivariate analysis” (Fornell 1987, p. 408).

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4,931 citations

"SMEs innovation capabilities and ex..." refers background in this paper

...PLS-SEM is robust (a) with models that contain latent variables and mediation and multiple group comparisons (Lowry, Gaskin 2014); (b) when research is at an early stage of theoretical development (Henseler, Chin 2010); and (c) when constructs may be measured by less than four items (Chin 1998; Lowry, Gaskin 2014)....
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...…(a) with models that contain latent variables and mediation and multiple group comparisons (Lowry, Gaskin 2014); (b) when research is at an early stage of theoretical development (Henseler, Chin 2010); and (c) when constructs may be measured by less than four items (Chin 1998; Lowry, Gaskin 2014)....
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