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Entrepreneurial Orientation and Network Ties: Innovative Performance of SMEs in an Emerging-Economy Manufacturing Cluster

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  • Theresia Gunawan

    (Maastricht School of Management and Technical University of Eindhoven, the Netherlands)

  • Jojo Jacob

    (United Nation University- Maastricht Economic and Social Research Institute on Innovation and Technology (UNU MERIT), the Netherlands)

  • Geert Duysters

    (Tilburg University, the Netherlands)

Abstract

This study investigates the role of intra-cluster ties, extra-cluster ties, and entrepreneurial orientation in shaping firms’ innovative performance. We conduct our analysis on a primary data set of 120 SMEs in the Cibaduyut footwear-manufacturing cluster, Indonesia. We find that extra-cluster ties mediate the relationship between proactiveness and innovative performance. A combination of high extra-cluster ties and risk taking exert a positive impact on innovative performance. Surprisingly, we find that risk taking negatively moderates the influence of intra-cluster ties on innovative performance. Overall, the findings of this study point to the synergistic effects of entrepreneurial orientation and extra-cluster ties on innovative performance.

Suggested Citation

  • Theresia Gunawan & Jojo Jacob & Geert Duysters, 2013. "Entrepreneurial Orientation and Network Ties: Innovative Performance of SMEs in an Emerging-Economy Manufacturing Cluster," Working Papers 2013/28, Maastricht School of Management.
    • Handle: RePEc:msm:wpaper:2013/28
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