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The Impact of Industry Clusters on the Performance of High Technology Small and Middle Size Enterprises

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  • Tong Tong

    (Department of Literature, Sichuan Minzu College, Kangding 626000, China
    School of Business and Economics, Universiti Putra Malaysia, Serdang 43400, Malaysia)

  • Norzalina Binti Zainudin

    (Department of Resource Management and Consumer Studies, Faculty of Human Ecology, Universiti Putra Malaysia, Serdang 43400, Malaysia)

  • Jingwen Yan

    (School of Business and Economics, Universiti Putra Malaysia, Serdang 43400, Malaysia)

  • Azmawani Abd Rahman

    (School of Business and Economics, Universiti Putra Malaysia, Serdang 43400, Malaysia)

Abstract

Based on the theory of independent innovation and competitive advantage, this paper takes industry cluster as the independent variable, long-term high-technology small and middle size enterprises (high-tech SMEs) performance and short-term high-tech SMEs’ performance as the dependent variable, and introduces independent innovation as the mediator variable to explore the impact of industry cluster on high-tech SMEs’ performance. SPSS22.0 was used to test the reliability and validity of the questionnaire distributed to 310 high-tech SMEs in Sichuan, China. SPSS is used for statistical analysis, integrating data entry, organization, and analysis functions. Its basic functions include data management, statistical analysis, chart analysis, and output management. A confirmatory factor analysis was conducted. Amos 24.0 is the structural equation model analysis software. After using Amos 24.0 to construct the SEM (Structural Equation Modelling) to verify the hypothesis, it was found that industry cluster has a significant positive impact on long-term and short-term high-tech SMEs’ performance, independent innovation has a significant positive impact on long-term and short-term high-tech SMEs’ performance, and independent innovation plays a mediator role in the relationship between industry cluster and high-tech SMEs’ performance. Based on the research results, this paper puts forward the following suggestions: (1) attach importance to independent innovation, introduce relevant technical talents, and improve innovation; and (2) accelerate the formation of clusters to improve the high-tech SMEs’ performance of the whole industry.

Suggested Citation

  • Tong Tong & Norzalina Binti Zainudin & Jingwen Yan & Azmawani Abd Rahman, 2023. "The Impact of Industry Clusters on the Performance of High Technology Small and Middle Size Enterprises," Sustainability, MDPI, vol. 15(12), pages 1-16, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:12:p:9333-:d:1167540
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    1. Lanqing Ge & Chunyan Li & Lei Sun & Weina Hu & Qi Ban, 2023. "The Relationship between High-Tech Industrial Agglomeration and Regional Innovation: A Meta-Analysis Investigation in China," Sustainability, MDPI, vol. 15(23), pages 1-22, December.

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