IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i19p12063-d923701.html
   My bibliography  Save this article

Impact of Entrepreneurship on Innovation Performance of Chinese SMEs: Focusing on the Mediating Effect of Enterprise Dynamic Capability and Organizational Innovation Environment

Author

Listed:
  • Fang Cui

    (School of Economics and Management, Taishan University, Tai’an 271000, China)

  • Jae-hoon Song

    (Department of Social Economics and Management, Graduate School, Woosuk University, Wanju-gun 55338, Korea)

Abstract

The primary objective of this study is to examine the relationship of entrepreneurship, enterprise innovation performance, enterprise dynamic ability, and organizational innovation environment of small and medium enterprises in China. Based on a thorough literature review, this study constructed a research model of “entrepreneurship, enterprise dynamic ability, organizational innovation environment, and enterprise innovation performance”. To meet this purpose, a survey was conducted by collecting data using a random sampling method targeting five cities in Shandong and Henan, where the proportion of small and medium-sized enterprises (SMEs) in China is high. Additionally, SPSS 26.0 and AMOS 24.0 were used to carry out correlation analyses, structural equation path analyses, and intermediary effect tests on 426 valid questionnaires. There are three major findings. First, entrepreneurship positively affects the dynamic ability of enterprises and the organizational innovation environment and enterprise innovation performance. Second, enterprise dynamic capability and organizational innovation environment positively affect enterprise innovation performance. Third, enterprise dynamic capability and organizational innovation environment play a partial mediating role on the influence path between entrepreneurship and innovation performance. The findings of this paper provide further evidence for the positive impact of entrepreneurship on innovation performance and the relationship between variables. Suggestions are provided for SMEs to improve their innovation performance. To stimulate entrepreneurship of SMEs, more attention needs to be given to cultivate their dynamic capabilities, create an environment of organizational innovation for enterprises, and help them maintain a competitive advantage in the ever-changing market environment.

Suggested Citation

  • Fang Cui & Jae-hoon Song, 2022. "Impact of Entrepreneurship on Innovation Performance of Chinese SMEs: Focusing on the Mediating Effect of Enterprise Dynamic Capability and Organizational Innovation Environment," Sustainability, MDPI, vol. 14(19), pages 1-17, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:19:p:12063-:d:923701
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/19/12063/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/19/12063/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Héctor Salgado-Banda, 2007. "Entrepreneurship And Economic Growth: An Empirical Analysis," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 12(01), pages 3-29.
    2. Carroll, Archie B., 1991. "The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders," Business Horizons, Elsevier, vol. 34(4), pages 39-48.
    3. Prajogo, Daniel I. & Sohal, Amrik S., 2006. "The relationship between organization strategy, total quality management (TQM), and organization performance--the mediating role of TQM," European Journal of Operational Research, Elsevier, vol. 168(1), pages 35-50, January.
    4. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    5. Joseph A. Schumpeter & A. J. Nichol, 1934. "Robinson's Economics of Imperfect Competition," Journal of Political Economy, University of Chicago Press, vol. 42(2), pages 249-249.
    6. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    7. David J. Teece & Richard Rumelt & Giovanni Dosi & Sidney Winter, 2000. "Understanding Corporate Coherence: Theory and Evidence," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 9, pages 264-293, Edward Elgar Publishing.
    8. Maurizio Zollo & Sidney G. Winter, 2002. "Deliberate Learning and the Evolution of Dynamic Capabilities," Organization Science, INFORMS, vol. 13(3), pages 339-351, June.
    9. Shaker A. Zahra & Anders P. Nielsen & William C. Bogner, 1999. "Corporate Entrepreneurship, Knowledge, and Competence Development," Entrepreneurship Theory and Practice, , vol. 23(3), pages 169-189, April.
    10. Yunlin Lu & Yimo Shen & Lei Zhao, 2015. "Linking Psychological Contract Breach and Employee Outcomes in China: Does Leader-Member Exchange Make a Difference?," Chinese Economy, Taylor & Francis Journals, vol. 48(4), pages 297-308, July.
    11. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    12. Constance E. Helfat, 1997. "Know‐how and asset complementarity and dynamic capability accumulation: the case of r&d," Strategic Management Journal, Wiley Blackwell, vol. 18(5), pages 339-360, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hafeez, Salima & Rana, Asif Mehmood & Chaudhry, Rashid Mehmood & Khan, Muhammad Aslam & Ahmad, H.Mushtaq & Rehman, Kashif Ur, 2011. "Perspectives of entrepreneurial orientation with the quality of life," MPRA Paper 53860, University Library of Munich, Germany.
    2. Lan Li & Gang Li & Fu-Sheng Tsai & Hsiu-Yu Lee & Chien-Hsing Lee, 2019. "The Effects of Corporate Social Responsibility on Service Innovation Performance: The Role of Dynamic Capability for Sustainability," Sustainability, MDPI, vol. 11(10), pages 1-20, May.
    3. Maria Chiara Di Guardo & Kathryn Rudie Harrigan & Elona Marku, 2019. "M&A and diversification strategies: what effect on quality of inventive activity?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(3), pages 669-692, September.
    4. Verreynne, Martie-Louise & Hine, Damian & Coote, Len & Parker, Rachel, 2016. "Building a scale for dynamic learning capabilities: The role of resources, learning, competitive intent and routine patterning," Journal of Business Research, Elsevier, vol. 69(10), pages 4287-4303.
    5. Richard Arend, 2013. "Ethics-focused dynamic capabilities: a small business perspective," Small Business Economics, Springer, vol. 41(1), pages 1-24, June.
    6. Amit Karna & Ansgar Richter & Eberhard Riesenkampff, 2016. "Revisiting the role of the environment in the capabilities–financial performance relationship: A meta-analysis," Strategic Management Journal, Wiley Blackwell, vol. 37(6), pages 1154-1173, June.
    7. Gilles David, 2013. "Capacites Dynamiques : Le Cas De Hyundai-Kia," Post-Print hal-00880409, HAL.
    8. Jean D. Kabongo & Olivier Boiral, 2017. "Doing More with Less: Building Dynamic Capabilities for Eco‐Efficiency," Business Strategy and the Environment, Wiley Blackwell, vol. 26(7), pages 956-971, November.
    9. Khan, Zaheer & Lew, Yong Kyu, 2018. "Post-entry survival of developing economy international new ventures: A dynamic capability perspective," International Business Review, Elsevier, vol. 27(1), pages 149-160.
    10. Ahsan, Mujtaba & Fernhaber, Stephanie A., 2019. "Multinational Enterprises: Leveraging a Corporate International Entrepreneurship Lens for New Insights Into Subsidiary Initiatives," Journal of International Management, Elsevier, vol. 25(1), pages 51-65.
    11. Richard Arend, 2014. "Entrepreneurship and dynamic capabilities: how firm age and size affect the ‘capability enhancement–SME performance’ relationship," Small Business Economics, Springer, vol. 42(1), pages 33-57, January.
    12. Maryono & Imam Ghozali & Amie Kusumawardhani & R. Mahelan Prabantarikso & Firdaus Basbeth, 2020. "Entrepreneurial Orientation in Government-Owned Bank: Do They Improve Competitive Advantage?," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 262-270, April.
    13. Jason Li-Ying & Yuandi Wang & Lutao Ning, 2016. "How do dynamic capabilities transform external technologies into firms’ renewed technological resources? – A mediation model," Asia Pacific Journal of Management, Springer, vol. 33(4), pages 1009-1036, December.
    14. Cristina Fernandes & João J. Ferreira & Mário L. Raposo & Cristina Estevão & Marta Peris-Ortiz & Carlos Rueda-Armengot, 2017. "The dynamic capabilities perspective of strategic management: a co-citation analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 112(1), pages 529-555, July.
    15. Jorge Iván Pérez-Rave & Rafael Fernández Guerrero & Andrés Salas Vallina & Favián González Echavarría, 2023. "A measurement model of dynamic capabilities of the continuous improvement project and its role in the renewal of the company’s products/services," Operations Management Research, Springer, vol. 16(1), pages 126-140, March.
    16. Jose L. Barbero & Alicia Ramos & Catherine Chiang, 2017. "Restructuring in dynamic environments: a dynamic capabilities perspective," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(4), pages 593-615.
    17. Dewi Mustikaningsih & Ina Primiana & Sucherly & Erie Febrian, 2019. "Partnership Strategy Model in Developing Renewable Power Plant: Case Study in Indonesia," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 41-63.
    18. Byungjoo Paek & Heesang Lee, 2018. "Strategic entrepreneurship and competitive advantage of established firms: evidence from the digital TV industry," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 883-925, December.
    19. Jarle Aarstad & Olav Andreas Kvitastein & Marte C. W. Solheim, 2021. "External shocks and enterprises' dynamic capabilities in a time of regional distress," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2342-2363, December.
    20. Jorge Ferreira & Sofia Cardim & Arnaldo Coelho, 2021. "Dynamic Capabilities and Mediating Effects of Innovation on the Competitive Advantage and Firm’s Performance: the Moderating Role of Organizational Learning Capability," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 620-644, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:19:p:12063-:d:923701. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.