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Sustaining Innovation Performance in SMEs: Exploring the Roles of Strategic Entrepreneurship and IT Capabilities

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  • Maurice J. Lyver

    (Graduate Institute of Technology Management, National Chung Hsing University, No. 250, KuoKuang Rd., Taichung 402, Taiwan
    DOAE, National Taichung University of Science and Technology, No. 129 San-Ming Rd., Taichung 40401, Taiwan)

  • Ta-Jung Lu

    (Graduate Institute of Technology Management, National Chung Hsing University, No. 250, KuoKuang Rd., Taichung 402, Taiwan)

Abstract

Recent research questions our understanding of the processes at play regarding information technology (IT) capabilities’ contribution to innovation performance, particularly under environmental uncertainty. Strategic entrepreneurship (SE) or the interface of entrepreneurship and strategic management, which aims to answer the very question of how firms create value or wealth and sustain success in increasingly competitive and dynamic environments, is deemed the appropriate catalyst to further explore this link. Thus, this study attempts to examine the driving effects of IT capabilities on product innovation performance (PIP) by exploring the mediating role of SE. Data were collected from 164 small- and medium-sized enterprises (SME) information communication technology (ICT) firms in Canada. Partial least squares (PLS) regression tested the hypotheses derived from the research model, and data exploration and analysis including visual analytics were performed in R. Results confirm that IT capabilities drive PIP and thereby create firm level value. Secondly, SE had a direct impact on PIP, and SE partially mediates IT capabilities effect on PIP. To date, SE research has mostly been conceptual in nature making this study one of the few to empirically capture the phenomena and highlight its link to sustainable innovation performance.

Suggested Citation

  • Maurice J. Lyver & Ta-Jung Lu, 2018. "Sustaining Innovation Performance in SMEs: Exploring the Roles of Strategic Entrepreneurship and IT Capabilities," Sustainability, MDPI, vol. 10(2), pages 1-27, February.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:2:p:442-:d:130859
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    Cited by:

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    3. Fawwaz Tawfiq Awamleh & Ala Nihad Bustami, 2022. "Examine the Mediating Role of the Information Technology Capabilities on the Relationship Between Artificial Intelligence and Competitive Advantage During the COVID-19 Pandemic," SAGE Open, , vol. 12(3), pages 21582440221, August.
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    6. Andreja Pucihar & Gregor Lenart & Mirjana Kljajić Borštnar & Doroteja Vidmar & Marjeta Marolt, 2019. "Drivers and Outcomes of Business Model Innovation—Micro, Small and Medium-Sized Enterprises Perspective," Sustainability, MDPI, vol. 11(2), pages 1-17, January.
    7. Hongyang Wang & Baizhou Li, 2023. "Research on the Synergic Influences of Digital Capabilities and Technological Capabilities on Digital Innovation," Sustainability, MDPI, vol. 15(3), pages 1-14, February.
    8. Yangyang Yu & Yong Qin & Zeshui Xu & Marinko Škare, 2022. "Bibliometric analysis of strategic entrepreneurship literature," International Entrepreneurship and Management Journal, Springer, vol. 18(4), pages 1475-1502, December.
    9. Denis Jelačić & Andreja Pirc Barčić & Leon Oblak & Darko Motik & Petra Grošelj & Matej Jošt, 2021. "Sustainable Production Management Model for Small and Medium Enterprises in Some South-Central EU Countries," Sustainability, MDPI, vol. 13(11), pages 1-15, May.
    10. Nabeel Rehman & Asif Mahmood & Amir Ikram & Ayyaz Ahmad, 2021. "Firing on all cylinders: Configuring information technology around the constituents of corporate entrepreneurship to outperform in SME sector," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-24, September.
    11. Rui Du & Adriana Grigorescu & Kamer-Ainur Aivaz, 2023. "Higher Educational Institutions’ Digital Transformation and the Roles of Digital Platform Capability and Psychology in Innovation Performance after COVID-19," Sustainability, MDPI, vol. 15(16), pages 1-14, August.
    12. Afrim Loku & Nadire Loku, 2020. "Internal factors affecting the performance of small and medium enterprises in Kosovo," Technium Social Sciences Journal, Technium Science, vol. 11(1), pages 115-127, September.
    13. Liangcheng Wang & Yining Dai & Yuye Ding, 2019. "Internal Control and SMEs’ Sustainable Growth: The Moderating Role of Multiple Large Shareholders," JRFM, MDPI, vol. 12(4), pages 1-14, December.
    14. Ma Degong & Farid Ullah & Muhammad Sualeh Khattak & Muhammad Anwar, 2018. "Do International Capabilities and Resources Configure Firm’s Sustainable Competitive Performance? Research within Pakistani SMEs," Sustainability, MDPI, vol. 10(11), pages 1-16, November.
    15. Johan Krisnanto Runtuk & Poh Kiat Ng & Shih Yin Ooi & Remigius Purwanto & Arief Suardi Nur Chairat & Yu Jin Ng, 2023. "Sustainable Growth for Small and Medium-Sized Enterprises: Interpretive Structural Modeling Approach," Sustainability, MDPI, vol. 15(5), pages 1-12, March.
    16. Haili Zhang & Yufan Wang & Michael Song, 2019. "Does Competitive Intensity Moderate the Relationships between Sustainable Capabilities and Sustainable Organizational Performance in New Ventures?," Sustainability, MDPI, vol. 12(1), pages 1-18, December.
    17. Huatao Peng & L’hocine Walid, 2022. "The Effects of Entrepreneurs’ Perceived Risks and Perceived Barriers on Sustainable Entrepreneurship in Algeria’s SMEs: The Mediating Role of Government Support," Sustainability, MDPI, vol. 14(17), pages 1-22, September.
    18. Wang, Huiqi & Yuan, Wei & Yuan, George, 2022. "The mechanism for SMEs growth by applying stochastic dynamical approach," Finance Research Letters, Elsevier, vol. 48(C).
    19. repec:thr:techub:10011:y:2020:i:1:p:115-127 is not listed on IDEAS
    20. Turhan Erkmen & Ayşe Günsel & Erkut Altındağ, 2020. "The Role of Innovative Climate in the Relationship between Sustainable IT Capability and Firm Performance," Sustainability, MDPI, vol. 12(10), pages 1-26, May.
    21. Valentina Cillo & Antonio Messeni Petruzzelli & Lorenzo Ardito & Manlio Del Giudice, 2019. "Understanding sustainable innovation: A systematic literature review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(5), pages 1012-1025, September.
    22. Wen, Huwei & Wen, Changyong & Lee, Chien-Chiang, 2022. "Impact of digitalization and environmental regulation on total factor productivity," Information Economics and Policy, Elsevier, vol. 61(C).
    23. Francesca Michelino & Antonello Cammarano & Andrea Celone & Mauro Caputo, 2019. "The Linkage between Sustainability and Innovation Performance in IT Hardware Sector," Sustainability, MDPI, vol. 11(16), pages 1-15, August.
    24. Yizhou Chu & Maomao Chi & Weijun Wang & Bo Luo, 2019. "The Impact of Information Technology Capabilities of Manufacturing Enterprises on Innovation Performance: Evidences from SEM and fsQCA," Sustainability, MDPI, vol. 11(21), pages 1-17, October.

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