IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v187y2023ics0040162522007685.html
   My bibliography  Save this article

Innovation in manufacturing SMEs during the COVID-19 pandemic: How does environmental dynamism reinforce employee proactive behavior?

Author

Listed:
  • Huang, Yi-Fen
  • Lin, Hung-Chun
  • Lee, Hsu-Mei

Abstract

In a turbulent environment such as during the COVID-19 pandemic crisis, employee proactive behavior is imperative for innovation initiatives in small- and medium-sized enterprises (SMEs). We ask whether and how turbulent environments motivate employees to proactively engage in innovative behavior. This study argues that employees' perceptions of environmental dynamism reinforce employee proactive innovation behavior. Using a sample comprising 262 innovative employees from 40 manufacturing SMEs in Taiwan, this study tests a moderated-mediation model in which environmental dynamism is expected to increase the indirect effect of creative self-efficacy on employee innovative behavior through knowledge acquisition. The results confirm the mediating role of knowledge acquisition and the positive moderating effect of environmental dynamism. This study sheds light on the issue of employee proactive behavior in response to changing environments.

Suggested Citation

  • Huang, Yi-Fen & Lin, Hung-Chun & Lee, Hsu-Mei, 2023. "Innovation in manufacturing SMEs during the COVID-19 pandemic: How does environmental dynamism reinforce employee proactive behavior?," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    • Handle: RePEc:eee:tefoso:v:187:y:2023:i:c:s0040162522007685
    DOI: 10.1016/j.techfore.2022.122247
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162522007685
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2022.122247?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Milé Terziovski, 2010. "Innovation practice and its performance implications in small and medium enterprises (SMEs) in the manufacturing sector: a resource‐based view," Strategic Management Journal, Wiley Blackwell, vol. 31(8), pages 892-902, August.
    2. Duong, Phuong-Anh Nguyen & Voordeckers, Wim & Huybrechts, Jolien & Lambrechts, Frank, 2022. "On external knowledge sources and innovation performance: Family versus non-family firms," Technovation, Elsevier, vol. 114(C).
    3. Sumayya Surty & Caren Brenda Scheepers, 2020. "Moderating effect of environmental dynamism on leadership practices and employees’ response to change in South Africa," Management Research Review, Emerald Group Publishing Limited, vol. 43(7), pages 787-810, January.
    4. Newman, Alexander & Tse, Herman H.M. & Schwarz, Gary & Nielsen, Ingrid, 2018. "The effects of employees' creative self-efficacy on innovative behavior: The role of entrepreneurial leadership," Journal of Business Research, Elsevier, vol. 89(C), pages 1-9.
    5. Xie, Xuemei & Wang, Lijun & Zeng, Saixing, 2018. "Inter-organizational knowledge acquisition and firms' radical innovation: A moderated mediation analysis," Journal of Business Research, Elsevier, vol. 90(C), pages 295-306.
    6. Rofcanin, Yasin & Heras, Mireia Las & Bosch, Maria Jose & Berber, Aykut & Mughal, Farooq & Ozturk, Mustafa, 2021. "Servant leadership and family supportiveness: Looking into employees’ work and family outcomes," Journal of Business Research, Elsevier, vol. 128(C), pages 70-82.
    7. Lin, Feng-Jyh & Lin, Yi-Hsin, 2016. "The effect of network relationship on the performance of SMEs," Journal of Business Research, Elsevier, vol. 69(5), pages 1780-1784.
    8. Hervas-Oliver, Jose-Luis & Parrilli, Mario Davide & Sempere-Ripoll, Francisca, 2021. "SME modes of innovation in European catching-up countries: The impact of STI and DUI drivers on technological innovation," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    9. Ahmed, Adeel & Bhatti, Sabeen Hussain & Gölgeci, Ismail & Arslan, Ahmad, 2022. "Digital platform capability and organizational agility of emerging market manufacturing SMEs: The mediating role of intellectual capital and the moderating role of environmental dynamism," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    10. Wu, Wen-Kuei & Wang Chiu, Singa, 2016. "The impact of guanxi positioning on the quality of manufacturer–retailer channel relationships: Evidence from Taiwanese SMEs," Journal of Business Research, Elsevier, vol. 69(9), pages 3398-3405.
    11. Zhang, Feng & Zhu, Lei, 2021. "Social media strategic capability, organizational unlearning, and disruptive innovation of SMEs: The moderating roles of TMT heterogeneity and environmental dynamism," Journal of Business Research, Elsevier, vol. 133(C), pages 183-193.
    12. Raymond Van Wijk & Justin J. P. Jansen & Marjorie A. Lyles, 2008. "Inter‐ and Intra‐Organizational Knowledge Transfer: A Meta‐Analytic Review and Assessment of its Antecedents and Consequences," Journal of Management Studies, Wiley Blackwell, vol. 45(4), pages 830-853, June.
    13. Kuckertz, Andreas & Brändle, Leif & Gaudig, Anja & Hinderer, Sebastian & Morales Reyes, Carlos Arturo & Prochotta, Alicia & Steinbrink, Kathrin M. & Berger, Elisabeth S.C., 2020. "Startups in times of crisis – A rapid response to the COVID-19 pandemic," Journal of Business Venturing Insights, Elsevier, vol. 13(C).
    14. Sumayya Surty & Caren Brenda Scheepers, 2020. "Moderating effect of environmental dynamism on leadership practices and employees’ response to change in South Africa," Management Research Review, Emerald Group Publishing Limited, vol. 43(7), pages 787-810, January.
    15. George P. Huber, 1991. "Organizational Learning: The Contributing Processes and the Literatures," Organization Science, INFORMS, vol. 2(1), pages 88-115, February.
    16. Dhar, Rajib Lochan, 2016. "Ethical leadership and its impact on service innovative behavior: The role of LMX and job autonomy," Tourism Management, Elsevier, vol. 57(C), pages 139-148.
    17. Van Auken, Howard E. & Fotouhi Ardakani, Mohammad & Carraher, Shawn & Khojasteh Avorgani, Razieh, 2021. "Innovation among entrepreneurial SMEs during the COVID-19 crisis in Iran," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 5(2), pages 395-395, September.
    18. Cenamor, Javier & Parida, Vinit & Wincent, Joakim, 2019. "How entrepreneurial SMEs compete through digital platforms: The roles of digital platform capability, network capability and ambidexterity," Journal of Business Research, Elsevier, vol. 100(C), pages 196-206.
    19. Tantawy, Maha & Herbert, Kendall & McNally, Jeffrey J. & Mengel, Thomas & Piperopoulos, Panagiotis & Foord, David, 2021. "Bringing creativity back to entrepreneurship education: Creative self-efficacy, creative process engagement, and entrepreneurial intentions," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    20. João J. M. Ferreira & Mario Raposo & Cristina I. Fernandes, 2014. "Technological vs. Professional Services and Location Influences on KIBS Innovative Capacity in Times of Crisis," Springer Books, in: Klaus Rüdiger & Marta Peris Ortiz & Alicia Blanco González (ed.), Entrepreneurship, Innovation and Economic Crisis, edition 127, chapter 0, pages 11-20, Springer.
    21. Ming-Kuen Chen & Chung-Min Wu & Lee-Shing Chen & Ya-Ping Huang, 2021. "The Influential Factors of Taiwan SMEs’ Clustering Keystone Business Strategy—The Perspective of Business Ecosystem Using FAHP," Sustainability, MDPI, vol. 13(18), pages 1-35, September.
    22. Mitchell, Rebecca & Boyle, Brendan & Nicholas, Stephen, 2021. "Team innovative capability: Does positive mood unlock the innovative potential of environmental cues?," Journal of Business Research, Elsevier, vol. 126(C), pages 376-384.
    23. Bjørn Willy Åmo & Lars Kolvereid, 2005. "Organizational Strategy, Individual Personality And Innovation Behavior," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 13(01), pages 7-19.
    24. Do, Hoa & Budhwar, Pawan & Shipton, Helen & Nguyen, Hai-Dang & Nguyen, Bach, 2022. "Building organizational resilience, innovation through resource-based management initiatives, organizational learning and environmental dynamism," Journal of Business Research, Elsevier, vol. 141(C), pages 808-821.
    25. Norman, Patricia M., 2004. "Knowledge acquisition, knowledge loss, and satisfaction in high technology alliances," Journal of Business Research, Elsevier, vol. 57(6), pages 610-619, June.
    26. Del Giudice, M. & Scuotto, V. & Garcia-Perez, A. & Messeni Petruzzelli, A., 2019. "Shifting Wealth II in Chinese economy. The effect of the horizontal technology spillover for SMEs for international growth," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 307-316.
    27. Chan, Hing Kai & Yee, Rachel W.Y. & Dai, Jing & Lim, Ming K., 2016. "The moderating effect of environmental dynamism on green product innovation and performance," International Journal of Production Economics, Elsevier, vol. 181(PB), pages 384-391.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zahoor, Nadia & Adomako, Samuel, 2023. "Be open to failure: Open innovation failure in dynamic environments," Technological Forecasting and Social Change, Elsevier, vol. 193(C).

    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. Kyrdoda, Yuliia & Balzano, Marco & Marzi, Giacomo, 2023. "Learn to survive crises: The role of firm resilience, innovation capabilities and environmental dynamism," Technology in Society, Elsevier, vol. 74(C).
    2. Mia Hsiao-Wen Ho & Pervez N. Ghauri & Mario Kafouros, 2019. "Knowledge Acquisition in International Strategic Alliances: The Role of Knowledge Ambiguity," Management International Review, Springer, vol. 59(3), pages 439-463, June.
    3. Partanen, Jukka & Kohtamäki, Marko & Patel, Pankaj C. & Parida, Vinit, 2020. "Supply chain ambidexterity and manufacturing SME performance: The moderating roles of network capability and strategic information flow," International Journal of Production Economics, Elsevier, vol. 221(C).
    4. Stanley Ibeku, 2018. "Organisational Learning, Innovation And Performance Of Technology Start-Ups In Lagos, Nigeria," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-15, April.
    5. Stefano Ghinoi & Riccardo Vita & Bodo Steiner & Alessandro Sinatra, 2024. "Family firm network strategies in regional clusters: evidence from Italy," Small Business Economics, Springer, vol. 62(1), pages 87-103, January.
    6. Khorshed Alam & Mohammad Afshar Ali & Michael Erdiaw-Kwasie & Md Shahiduzzaman & Eswaran Velayutham & Peter A. Murray & Retha Wiesner, 2022. "Impact of ICTs on Innovation and Performance of Firms: Do Start-ups, Regional Proximity and Skills Matter?," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    7. Wang, Nan & Wan, Jiahao & Ma, Zhenzhong & Zhou, Yan & Chen, Jin, 2023. "How digital platform capabilities improve sustainable innovation performance of firms: The mediating role of open innovation," Journal of Business Research, Elsevier, vol. 167(C).
    8. Mohamed Bouteraa & Elhachemi Tamma & Mohammed El Hafedh Aichouche & Sadok Achour & Suddin Lada & Rudy Ansar & Lim Ming Fook & Brahim Chekima, 2023. "International Joint Ventures’ Knowledge Acquisition: Critical Literature Review," Sustainability, MDPI, vol. 15(8), pages 1-18, April.
    9. Graciela Corral de Zubielqui & Noel Lindsay & Wendy Lindsay & Janice Jones, 2019. "Knowledge quality, innovation and firm performance: a study of knowledge transfer in SMEs," Small Business Economics, Springer, vol. 53(1), pages 145-164, June.
    10. Pham Quang Huy & Vu Kien Phuc, 2023. "Big data in relation with business intelligence capabilities and e-commerce during COVID-19 pandemic in accountant’s perspective," Future Business Journal, Springer, vol. 9(1), pages 1-21, December.
    11. Tsu-Ming Yeh & Fan-Yun Pai & Liang-Chuan Wu, 2020. "Relationship Stability and Supply Chain Performance for SMEs: From Internal, Supplier, and Customer Integration Perspectives," Mathematics, MDPI, vol. 8(11), pages 1-18, October.
    12. Feng Zhang & Lei Zhu, 2019. "Enhancing corporate sustainable development: Stakeholder pressures, organizational learning, and green innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1012-1026, September.
    13. Tzu-Hsin Liu & Yung-Chang Hsiao, 2019. "Fitting cooperative mode in inter-organizational strategic alliance: a perspective from innovative and financial performances," The Journal of Technology Transfer, Springer, vol. 44(1), pages 73-96, February.
    14. Lívia Lopes Barakat & Torben Pedersen & Marcio Amaral-Baptista & Sherban Leornardo Cretoiu & Paulo Bento, 2022. "Too Much of Two Good Things: Explicating the Limited Complementarity Between Drivers of MNC Headquarters’ Absorptive Capacity," Management International Review, Springer, vol. 62(3), pages 393-426, June.
    15. Lyu, Chongchong & Zhang, Feng & Ji, Jing & Teo, Thompson S.H. & Wang, Ting & Liu, Zifan, 2022. "Competitive intensity and new product development outcomes: The roles of knowledge integration and organizational unlearning," Journal of Business Research, Elsevier, vol. 139(C), pages 121-133.
    16. Scuotto, Veronica & Garcia-Perez, Alexeis & Nespoli, Chiara & Messeni Petruzzelli, Antonio, 2020. "A repositioning organizational knowledge dynamics by functional upgrading and downgrading strategy in global value chain," Journal of International Management, Elsevier, vol. 26(4).
    17. Wenke, Kathrin & Zapkau, Florian B. & Schwens, Christian, 2021. "Too small to do it all? A meta-analysis on the relative relationships of exploration, exploitation, and ambidexterity with SME performance," Journal of Business Research, Elsevier, vol. 132(C), pages 653-665.
    18. Izlem Gozukara & Osman Yildirim, 2016. "Exploring the link between Distributive Justice and Innovative Behavior: Organizational Learning Capacity as a Mediator," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(2), pages 61-75, April.
    19. Antonio Juan Briones-Peñalver & Juan Andrés Bernal-Conesa & Carmen Nieves Nieto, 0. "Knowledge and innovation management model. Its influence on technology transfer and performance in Spanish Defence industry," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-21.
    20. Yu Gao & Xiuyun Yang & Shuangyan Li, 2022. "Government Supports, Digital Capability, and Organizational Resilience Capacity during COVID-19: The Moderation Role of Organizational Unlearning," Sustainability, MDPI, vol. 14(15), pages 1-19, August.

    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:eee:tefoso:v:187:y:2023:i:c:s0040162522007685. 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: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    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.