IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i23p6628-d290240.html
   My bibliography  Save this article

Entrepreneurial Business Tie and Product Innovation: A Moderated Mediation Model

Author

Listed:
  • Gang Wang

    (Economics and Management School, Wuhan University, Wuhan 430072, China
    Research Center for China Industry-University-Research Institute Collaboration, Wuhan University, Wuhan 430072, China)

  • Linwei Li

    (Management School, Xi’an University of Architecture and Technology, Xi’an 710055, China)

  • Gang Ma

    (School of Remote Sensing and Information Engineering, Wuhan University, Wuhan 430072, China)

Abstract

Radical innovation has attracted increasing attention in corporate sustainability research. Employing a social capital perspective, we explore how and when entrepreneurial business ties (EBTs) enhance radical innovation by considering risk taking as a critical mediator and environmental turbulence as a conditional factor of the mediation effect. Data is collected from 322 Chinese new ventures. We find empirical support for the moderated mediation model. Specifically, EBT is positively related to risk taking while risk taking is positively related to radical innovation. Risk taking further serves as a mediator in the EBT-radical innovation relationship, and this indirect effect is stronger at a high level of technological turbulence. By revealing how entrepreneurs translate their business ties into positive radical innovation outcomes through risk taking and when this indirect effect is most effective, we enhance understandings of the value of EBT and how to impel radical innovation.

Suggested Citation

  • Gang Wang & Linwei Li & Gang Ma, 2019. "Entrepreneurial Business Tie and Product Innovation: A Moderated Mediation Model," Sustainability, MDPI, vol. 11(23), pages 1-18, November.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:23:p:6628-:d:290240
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/23/6628/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/23/6628/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Flor, M. Luisa & Cooper, Sarah Y. & Oltra, María J., 2018. "External knowledge search, absorptive capacity and radical innovation in high-technology firms," European Management Journal, Elsevier, vol. 36(2), pages 183-194.
    2. Linnenluecke, Martina K. & Griffiths, Andrew, 2010. "Corporate sustainability and organizational culture," Journal of World Business, Elsevier, vol. 45(4), pages 357-366, October.
    3. Chen, Ming-Huei & Chang, Yu-Yu & Lee, Chia-Yu, 2015. "Creative entrepreneurs' guanxi networks and success: Information and resource," Journal of Business Research, Elsevier, vol. 68(4), pages 900-905.
    4. Gail Whiteman & Brian Walker & Paolo Perego, 2013. "Planetary Boundaries: Ecological Foundations for Corporate Sustainability," Journal of Management Studies, Wiley Blackwell, vol. 50(2), pages 307-336, March.
    5. Sarah Jack & Sarah Drakopoulou Dodd & Alistair R. Anderson, 2008. "Change and the development of entrepreneurial networks over time: a processual perspective," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 20(2), pages 125-159, March.
    6. Andreas Rauch & Johan Wiklund & G.T. Lumpkin & Michael Frese, 2009. "Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 33(3), pages 761-787, May.
    7. Sheng, Shibin & Zhou, Kevin Zheng & Lessassy, Leopold, 2013. "NPD speed vs. innovativeness: The contingent impact of institutional and market environments," Journal of Business Research, Elsevier, vol. 66(11), pages 2355-2362.
    8. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    9. Timothy J. Quigley & Donald C. Hambrick, 2015. "Has the “CEO effect” increased in recent decades? A new explanation for the great rise in America's attention to corporate leaders," Strategic Management Journal, Wiley Blackwell, vol. 36(6), pages 821-830, June.
    10. Roud, Vitaliy, 2018. "Understanding the heterogeneity of innovation modes: Performance effects, barriers, and demand for state support," Technological Forecasting and Social Change, Elsevier, vol. 133(C), pages 238-253.
    11. Shu, Rui & Ren, Shenggang & Zheng, Yi, 2018. "Building networks into discovery: The link between entrepreneur network capability and entrepreneurial opportunity discovery," Journal of Business Research, Elsevier, vol. 85(C), pages 197-208.
    12. Lopes, Ana Paula Vilas Boas Viveiros & de Carvalho, Marly Monteiro, 2018. "Evolution of the open innovation paradigm: Towards a contingent conceptual model," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 284-298.
    13. Zhiyang Liu & Zuhui Xu & Zhao Zhou & Yong Li, 2019. "Buddhist entrepreneurs and new venture performance: the mediating role of entrepreneurial risk-taking," Small Business Economics, Springer, vol. 52(3), pages 713-727, March.
    14. Robert E. Hoskisson & Michael A. Hitt & Charles W. L. Hill, 1991. "Managerial Risk Taking in Diversified Firms: An Evolutionary Perspective," Organization Science, INFORMS, vol. 2(3), pages 296-314, August.
    15. Rosa Maria Dangelico, 2016. "Green Product Innovation: Where we are and Where we are Going," Business Strategy and the Environment, Wiley Blackwell, vol. 25(8), pages 560-576, December.
    16. Ben Spigel, 2017. "The Relational Organization of Entrepreneurial Ecosystems," Entrepreneurship Theory and Practice, , vol. 41(1), pages 49-72, January.
    17. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    18. Zelong Wei & Hao Shen & Kevin Zheng Zhou & Julie Juan Li, 2017. "How Does Environmental Corporate Social Responsibility Matter in a Dysfunctional Institutional Environment? Evidence from China," Journal of Business Ethics, Springer, vol. 140(2), pages 209-223, January.
    19. Gang Wang & Linwei Li & Xu Jiang, 2019. "Entrepreneurial Business Ties and New Venture Growth: The Mediating Role of Resource Acquiring, Bundling and Leveraging," Sustainability, MDPI, vol. 11(1), pages 1-19, January.
    20. Andreas Klein & Helfried Moosbrugger, 2000. "Maximum likelihood estimation of latent interaction effects with the LMS method," Psychometrika, Springer;The Psychometric Society, vol. 65(4), pages 457-474, December.
    21. Jukka Partanen & Sylvie K. Chetty & Arto Rajala, 2014. "Innovation Types and Network Relationships," Entrepreneurship Theory and Practice, , vol. 38(5), pages 1027-1055, September.
    22. J. L. Morrow & David G. Sirmon & Michael A. Hitt & Tim R. Holcomb, 2007. "Creating value in the face of declining performance: firm strategies and organizational recovery," Strategic Management Journal, Wiley Blackwell, vol. 28(3), pages 271-283, March.
    23. Pollack, Jeffrey M. & Rutherford, Matthew W. & Seers, Anson & Coy, Anthony E. & Hanson, Sheila, 2016. "Exploring entrepreneurs' social network ties: Quantity versus quality," Journal of Business Venturing Insights, Elsevier, vol. 6(C), pages 28-35.
    24. Kevin Zheng Zhou & Caroline Bingxin Li, 2012. "How knowledge affects radical innovation: Knowledge base, market knowledge acquisition, and internal knowledge sharing," Strategic Management Journal, Wiley Blackwell, vol. 33(9), pages 1090-1102, September.
    25. Shibin Sheng & Kevin Zheng Zhou & L. Lessassy, 2013. "NPD speed vs. innovativeness: The contingent impact of institutional and market environments," Post-Print halshs-00862665, HAL.
    26. Feifei Jiang & Gang Wang & Xu Jiang, 2019. "Entrepreneurial orientation and organizational knowledge creation: A configurational approach," Asia Pacific Journal of Management, Springer, vol. 36(4), pages 1193-1219, December.
    27. Johan Wiklund & DEAN Shepherd, 2003. "Knowledge‐based resources, entrepreneurial orientation, and the performance of small and medium‐sized businesses," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1307-1314, December.
    28. Vasconcelos Gomes, Leonardo Augusto de & Salerno, Mario Sergio & Phaal, Robert & Probert, David R., 2018. "How entrepreneurs manage collective uncertainties in innovation ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 128(C), pages 164-185.
    29. Anderson, Alistair R. & Dodd, Sarah Drakopoulou & Jack, Sarah, 2010. "Network practices and entrepreneurial growth," Scandinavian Journal of Management, Elsevier, vol. 26(2), pages 121-133, June.
    30. Bradley A. George, 2011. "Entrepreneurial Orientation: A Theoretical and Empirical Examination of the Consequences of Differing Construct Representations," Journal of Management Studies, Wiley Blackwell, vol. 48, pages 1291-1313, September.
    31. Wafa N. Almobaireek & Ahmed A. Alshumaimeri & Tatiana S. Manolova, 2016. "Building entrepreneurial inter-firm networks in an emerging economy: the role of cognitive legitimacy," International Entrepreneurship and Management Journal, Springer, vol. 12(1), pages 87-114, March.
    32. Gang Wang & Xu Jiang & Chang-Hong Yuan & Ya-Qun Yi, 2013. "Managerial ties and firm performance in an emerging economy: Tests of the mediating and moderating effects," Asia Pacific Journal of Management, Springer, vol. 30(2), pages 537-559, June.
    33. Wei‐ping Wu, 2008. "Dimensions of Social Capital and Firm Competitiveness Improvement: The Mediating Role of Information Sharing," Journal of Management Studies, Wiley Blackwell, vol. 45(1), pages 122-146, January.
    34. Fain, Nusa & Wagner, Beverly & Kay, Neil, 2018. "Driving innovation through ambidextrous service provision — long life cycle products in manufacturing contexts," Technological Forecasting and Social Change, Elsevier, vol. 130(C), pages 3-13.
    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. Jeakang Heo & Yongjune Kim & Jinzhe Yan, 2020. "Sustainability of Live Video Streamer’s Strategies: Live Streaming Video Platform and Audience’s Social Capital in South Korea," Sustainability, MDPI, vol. 12(5), pages 1-13, March.

    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. Li Chen & Shaoming Zou & Hui Xu & Yiwen Chen, 2020. "Entrepreneurial Orientation in Multinational Corporations: Antecedents and Effects," Management International Review, Springer, vol. 60(1), pages 123-148, February.
    2. Usama Awan & Shazia Nauman & Robert Sroufe, 2021. "Exploring the effect of buyer engagement on green product innovation: Empirical evidence from manufacturers," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 463-477, January.
    3. Wu, Liang & Liu, Heng & Zhang, Jianqi, 2017. "Bricolage effects on new-product development speed and creativity: The moderating role of technological turbulence," Journal of Business Research, Elsevier, vol. 70(C), pages 127-135.
    4. Katharina Fellnhofer, 2019. "The Complementary Effects Of Firms’ And Team Leaders’ Entrepreneurial Orientation On Innovation Success And Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-32, June.
    5. Fahad Nasser F. Alarjani & Bilal Anwar & Hassan Danial Aslam & Shahid Iqbal & Arslan Ayub, 2020. "A Moderated Mediation Model of Entrepreneurial Self-Efficacy, Institutional Environment, and Entrepreneurial Orientation for SME Development," SAGE Open, , vol. 10(3), pages 21582440209, July.
    6. Donbesuur, Francis & Boso, Nathaniel & Hultman, Magnus, 2020. "The effect of entrepreneurial orientation on new venture performance: Contingency roles of entrepreneurial actions," Journal of Business Research, Elsevier, vol. 118(C), pages 150-161.
    7. Xiaolin Li & Changyu Wang, 2022. "Entrepreneurial bricolage and marketing capability: contingent roles of market turbulence and strategic flexibility," Asian Business & Management, Palgrave Macmillan, vol. 21(3), pages 458-481, July.
    8. Zhaoyang Guo & Wei Jiang, 2020. "Risk-taking for entrepreneurial new entry: risk-taking dimensions and contingencies," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 739-781, June.
    9. Zhu, Xiaoxuan & Xiao, Zhenxin & Dong, Maggie Chuoyan & Gu, Jibao, 2019. "The fit between firms’ open innovation and business model for new product development speed: A contingent perspective," Technovation, Elsevier, vol. 86, pages 75-85.
    10. Zhiwei Yan & Xuerong Peng & Seoki Lee & Leibao Zhang, 2023. "How do multiple cognitions shape corporate proactive environmental strategies? The joint effects of environmental awareness and entrepreneurial orientation," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1592-1617, September.
    11. 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).
    12. Tammi, Timo & Saastamoinen, Jani & Reijonen, Helen, 2020. "Public procurement as a vehicle of innovation – What does the inverted-U relationship between competition and innovativeness tell us?," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    13. Wang, Zhiqiang & Chen, Xiaoli & Zhang, Shanshan & Yin, Ying & Zhao, Xiande, 2022. "The impact of political ties on firm innovativeness: Testing a mediation and moderation model," Journal of Business Research, Elsevier, vol. 144(C), pages 523-534.
    14. Gang Wang & Linwei Li & Xu Jiang, 2019. "Entrepreneurial Business Ties and New Venture Growth: The Mediating Role of Resource Acquiring, Bundling and Leveraging," Sustainability, MDPI, vol. 11(1), pages 1-19, January.
    15. Bradley A. George & Louis Marino, 2011. "The Epistemology of Entrepreneurial Orientation: Conceptual Formation, Modeling, and Operationalization," Entrepreneurship Theory and Practice, , vol. 35(5), pages 989-1024, September.
    16. Mitja Ruzzier & Evan J. Douglas & Maja Konečnik Ruzzier & Jana Hojnik, 2020. "International Entrepreneurial Orientation and the Intention to Internationalize," Sustainability, MDPI, vol. 12(14), pages 1-19, July.
    17. 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.
    18. Morgan, Todd & Anokhin, Sergey Alexander, 2020. "The joint impact of entrepreneurial orientation and market orientation in new product development: Studying firm and environmental contingencies," Journal of Business Research, Elsevier, vol. 113(C), pages 129-138.
    19. Wu, Liang & Liu, Heng & Su, Kun, 2020. "Exploring the dual effect of effectuation on new product development speed and quality," Journal of Business Research, Elsevier, vol. 106(C), pages 82-93.
    20. Jörg Freiling & Christoph Lütke Schelhowe, 2014. "The Impact of Entrepreneurial Orientation on the Performance and Speed of Internationalization," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 10(4), pages 169-199.

    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:gam:jsusta:v:11:y:2019:i:23:p:6628-:d:290240. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.