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SMEs' Radical Product Innovation: The Role of Internally and Externally Oriented Knowledge Capabilities

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  • Johan Maes
  • Luc Sels

Abstract

This study examines the role and contribution of specific internally (knowledge diversity and sharing capabilities) and externally oriented knowledge‐related capabilities (exploratory, transformative, and exploitative learning processes of absorptive capacity) to radical product innovation in small and medium‐sized enterprises (SMEs). It extends the current literature on the topic by considering both types of knowledge‐related capabilities and by hypothesizing and testing connections between both. Our path analysis results, based on a sample of 194 SMEs in dynamic environments, indicate that radical innovation is positively affected by exploitative learning and by the knowledge sharing capability. Implications and suggestions for future research are discussed.

Suggested Citation

  • Johan Maes & Luc Sels, 2014. "SMEs' Radical Product Innovation: The Role of Internally and Externally Oriented Knowledge Capabilities," Journal of Small Business Management, Taylor & Francis Journals, vol. 52(1), pages 141-163, January.
    • Handle: RePEc:taf:ujbmxx:v:52:y:2014:i:1:p:141-163
    DOI: 10.1111/jsbm.12037
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    Cited by:

    1. Guedes, Maria João & Patel, Pankaj C. & Kowalkowski, Christian & Oghazi, Pejvak, 2022. "Family business, servitization, and performance: Evidence from Portugal," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    2. Bekezela Moyo & Edinah Moyo, 2017. "SMEs Management Practices in a Hostile Business Environment in Zimbabwe," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 4(1), pages 1324-1324, December.
    3. Liu, Zixu & Zhou, Jianghua & Li, Jizhen, 2023. "How do family firms respond strategically to the digital transformation trend: Disclosing symbolic cues or making substantive changes?," Journal of Business Research, Elsevier, vol. 155(PA).
    4. Donbesuur, Francis & Hultman, Magnus & Oghazi, Pejvak & Boso, Nathaniel, 2022. "External knowledge resources and new venture success in developing economies: Leveraging innovative opportunities and legitimacy strategies," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    5. Istipliler, Baris & Bort, Suleika & Woywode, Michael, 2023. "Flowers of adversity: Institutional constraints and innovative SMEs in transition economies," Journal of Business Research, Elsevier, vol. 154(C).

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