Abstract:Because small and medium-sized enterprises (SMEs) are pivotal to the health and vibrancy of economies, it is crucial for researchers to understand the factors that significantly underlie SME performance. Two of the most widely identified antecedents to SME performance are innovation and networking. However, despite widespread attention, the theoretical and empirical status of the relationships between innovation, networks and SME performance remain uncertain. Some researchers note that claims regarding a direc… Show more
“…The data presented in Figure 2 show that France takes the lead in terms of business-to-business collaboration as more than 50 per cent of innovative firms have co-created goods or services in the year 2018. Our results are consistent with prior Australian studies and government reports that highlight a low level of collaboration in small and medium-sized firms (Gronum 2015;Australian Government 2017;Innovation and Science Australia 2017).…”
Section: Resultssupporting
confidence: 92%
“…It has no effect on growth for the low or average growth firms. Consequently, the relationship between innovation diversity and growth is highly contextual (Gronum 2015). The modest growth effect of innovation in this study can be explained on the grounds that the majority of the firms in our dataset are non‐employing or microfirms (around 50 per cent as in Appendix ), and such firms may lack the capacity to transform their innovation into commercial success.…”
Section: Discussionmentioning
confidence: 99%
“…2011). In such cases, it is better to concentrate efforts on a few innovations than to dilute efforts into many (Gronum 2015; Roxas et al . 2014).…”
Section: Discussionmentioning
confidence: 99%
“…These results support claims that particular cases, such as low-growth small firms that suffer resource constraints, cannot muster the minimum resources needed to develop innovation projects (Rosenbusch et al 2011). In such cases, it is better to concentrate efforts on a few innovations than to dilute efforts into many (Gronum 2015;Roxas et al 2014). A related explanation is that larger companies face the uncertainty and risks of innovation with high growth and more resources (Eisenhardt and Martin 2000) or previous experience with innovation projects more common in larger organisations (Majchrzak et al 2004;Danneels 2002).…”
Research on the collaboration-innovation nexus emphasises that collaborations and innovation are multidimensional. Despite this emphasis, there is limited evidence on how firms' collaborative diversity affects their innovation diversity. This paper addresses this gap by examining the relationships between (i) a firm's functional diversity of collaboration (FDC) and innovation diversity, and (ii) innovation diversity and firm growth. We used longitudinal data from 738 Australian food firms, and our findings suggest that the positive relationship between FDC and innovation diversity reaches a point of saturation, beyond which additional collaboration negatively influences firms' innovation diversity. Moreover, innovation diversity depends on the motives behind alliance formation and the firm's focus on innovation. Finally, the association between innovation diversity and growth performance is heterogeneous across firms' conditional growth rate distribution.
“…The data presented in Figure 2 show that France takes the lead in terms of business-to-business collaboration as more than 50 per cent of innovative firms have co-created goods or services in the year 2018. Our results are consistent with prior Australian studies and government reports that highlight a low level of collaboration in small and medium-sized firms (Gronum 2015;Australian Government 2017;Innovation and Science Australia 2017).…”
Section: Resultssupporting
confidence: 92%
“…It has no effect on growth for the low or average growth firms. Consequently, the relationship between innovation diversity and growth is highly contextual (Gronum 2015). The modest growth effect of innovation in this study can be explained on the grounds that the majority of the firms in our dataset are non‐employing or microfirms (around 50 per cent as in Appendix ), and such firms may lack the capacity to transform their innovation into commercial success.…”
Section: Discussionmentioning
confidence: 99%
“…2011). In such cases, it is better to concentrate efforts on a few innovations than to dilute efforts into many (Gronum 2015; Roxas et al . 2014).…”
Section: Discussionmentioning
confidence: 99%
“…These results support claims that particular cases, such as low-growth small firms that suffer resource constraints, cannot muster the minimum resources needed to develop innovation projects (Rosenbusch et al 2011). In such cases, it is better to concentrate efforts on a few innovations than to dilute efforts into many (Gronum 2015;Roxas et al 2014). A related explanation is that larger companies face the uncertainty and risks of innovation with high growth and more resources (Eisenhardt and Martin 2000) or previous experience with innovation projects more common in larger organisations (Majchrzak et al 2004;Danneels 2002).…”
Research on the collaboration-innovation nexus emphasises that collaborations and innovation are multidimensional. Despite this emphasis, there is limited evidence on how firms' collaborative diversity affects their innovation diversity. This paper addresses this gap by examining the relationships between (i) a firm's functional diversity of collaboration (FDC) and innovation diversity, and (ii) innovation diversity and firm growth. We used longitudinal data from 738 Australian food firms, and our findings suggest that the positive relationship between FDC and innovation diversity reaches a point of saturation, beyond which additional collaboration negatively influences firms' innovation diversity. Moreover, innovation diversity depends on the motives behind alliance formation and the firm's focus on innovation. Finally, the association between innovation diversity and growth performance is heterogeneous across firms' conditional growth rate distribution.
“…Careful and informed choice is made in selecting these particular capabilities. Studies affirm that networking and innovation are two of the most widely identified antecedents to SME performance [6]. Dynamic capabilities literature [7] also attests to the fact that sensing capability is "more significant than ever to SMEs" (p. 3).…”
This research seeks to address small and medium-sized enterprises (SMEs)’ performance problems by linking dynamic managerial capabilities to firm performance. In today’s dynamic market environment, it is vitally important for managers/owners of SMEs to possess dynamic capabilities. This study limited its focus to three managerial capabilities namely networking, sensing, and innovation with the moderating role of market dynamism. The data collection process and analysis provided findings that revealed that Chinese SME managers/owners effectively employ managerial capabilities in managing their firms. The hypotheses tests resulted in significant positive relationship between the main variables and performance. The moderating variable, however, had a significant effect only on moderating the relationship between sensing capabilities and performance. The findings from this study suggest that SMEs need to improve their knowledge and application of managerial capabilities in transforming their business performance thereby contributing to the national economy. This study contributes to the dynamic capabilities’ literature by adding to the existing research on the subject. It also provides an understanding of how dynamic capabilities are deployed to build up a solid and sustainable firm performance that resists the waves of market upheavals and it is expected to greatly benefit theory, policy and practice.
PurposeA key finding in the extant literature on adopting information systems has been the importance of management support and a champion. Further research has indicated that business managers need to have appropriate IT knowledge and skills to lead adoption adequately. In the context of small and medium enterprises (SMEs), this role is usually assumed by the owner/manager. This research aims to synthesise these two tenets by identifying and understanding the type of business intelligence and analytics (BI&A) leadership skills that owners/managers need to develop during the adoption of BI&A.Design/methodology/approachFive BI&A knowledge areas are identified and connected to different types of BI&A leadership skills through qualitative in-depth case studies of fourteen Australian SMEs.FindingsThe case studies reveal that several BI&A leadership skills need to be developed to bring SMEs to higher stages of BI&A adoption.Practical implicationsThis study proposes a BI&A leadership skills development framework that allows practitioners to develop progressive BI&A skills concerning managing data, analytical skills, business processes, social and cultural change, and investment decisions to achieve sustainable operational, management and strategic goals.Originality/valueThe paper takes a unique approach that links five knowledge areas to BI&A leadership skills that owners/managers need to ensure for effective adoption and orchestration of BI&A in their organisations. The BI&A leadership framework includes a developmental approach that relates to the iterative and complex nature of BI&A adoption.
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