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How does customer and supplier cooperation in micro-enterprises affect innovation? Evidence from Pakistani handicraft micro-enterprises

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  • Yongzhong Yang

    (Sichuan University)

  • Mohsin Shafi

    (Sichuan University)

Abstract

Due to resource constraints, short product-life cycle, and increased competition, handicraft micro-enterprises face many difficulties. By investigating the individual effects of customer and supplier cooperations on innovation (and thereby, firm performance), this study reveals how micro-enterprises can overcome such limitations and maintain competitiveness in the market. We find that cooperation with both partners significantly and positively affects product innovation, but only cooperation with suppliers has significant and positive effect on process innovation. In turn, product and process innovations significantly and positively affect a firm’s financial and non-financial performances. Our findings provide useful theoretical and practical implications.

Suggested Citation

  • Yongzhong Yang & Mohsin Shafi, 2020. "How does customer and supplier cooperation in micro-enterprises affect innovation? Evidence from Pakistani handicraft micro-enterprises," Asian Business & Management, Palgrave Macmillan, vol. 19(5), pages 530-559, November.
    • Handle: RePEc:pal:abaman:v:19:y:2020:i:5:d:10.1057_s41291-019-00072-4
    DOI: 10.1057/s41291-019-00072-4
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    2. Ju Han Yeon & Seung-hwan Jang, 2023. "The Relation between Bio-Industry Performance and Innovation Capacity—Focusing on the Korean Bio-Industry," Sustainability, MDPI, vol. 15(9), pages 1-17, April.

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