IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i9p4093-d1647737.html
   My bibliography  Save this article

Driving SMEs’ Sustainable Competitive Advantage: The Role of Service Innovation, Intellectual Property Protection, Continuous Innovation Performance, and Open Innovation

Author

Listed:
  • Xi Wang

    (School of Business and Economics, Universiti Putra Malaysia, Serdang 43400, Selangor, Malaysia)

  • Raja Nerina Raja Yusof

    (School of Business and Economics, Universiti Putra Malaysia, Serdang 43400, Selangor, Malaysia)

  • Nor Siah Jaharuddin

    (School of Business and Economics, Universiti Putra Malaysia, Serdang 43400, Selangor, Malaysia)

Abstract

The process of transforming service innovation into sustainable competitive advantage in small and medium-sized enterprises (SMEs) remained underexplored. Grounded in the resource-based view, this study investigated the roles of intellectual property protection, open innovation, and continuous innovation performance in facilitating this transformation. A survey of 158 representatives from Chinese SMEs was conducted. The results showed that service innovation had a significant positive effect on both intellectual property protection and continuous innovation performance. Furthermore, intellectual property protection significantly influenced continuous innovation performance, which, in turn, had a significant impact on sustainable competitive advantage. Notably, continuous innovation performance was found to partially mediate the relationship between service innovation and sustainable competitive advantage. However, the moderating role of open innovation and the mediating role of intellectual property protection in the relationship between service innovation and sustainable competitive advantage were not supported. This study contributed to the literature by offering a deeper understanding of how service innovation could drive sustainable competitive advantage in small and medium-sized enterprises. The empirical findings provided practical insights to help small and medium-sized enterprises align their innovation efforts with appropriate protective and collaborative strategies to enhance long-term competitiveness and market positioning.

Suggested Citation

  • Xi Wang & Raja Nerina Raja Yusof & Nor Siah Jaharuddin, 2025. "Driving SMEs’ Sustainable Competitive Advantage: The Role of Service Innovation, Intellectual Property Protection, Continuous Innovation Performance, and Open Innovation," Sustainability, MDPI, vol. 17(9), pages 1-19, May.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:9:p:4093-:d:1647737
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/9/4093/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/9/4093/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cuthbertson, Richard W. & Furseth, Peder Inge, 2022. "Digital services and competitive advantage: Strengthening the links between RBV, KBV, and innovation," Journal of Business Research, Elsevier, vol. 152(C), pages 168-176.
    2. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    3. Song, Yan & Xiu, Yifan & Zhao, Mengyang & Tian, Ye & Wang, Jingyuan, 2024. "Intellectual property protection and enterprise innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 62(PB).
    4. Ferreira, Jorge & Coelho, Arnaldo & Moutinho, Luiz, 2020. "Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation," Technovation, Elsevier, vol. 92.
    5. Lai, Edwin L. -C., 1998. "International intellectual property rights protection and the rate of product innovation," Journal of Development Economics, Elsevier, vol. 55(1), pages 133-153, February.
    6. Yihao Cao & Ehsan Elahi & Zainab Khalid & Ping Li & Pengsheng Sun, 2023. "How Do Intellectual Property Rights Affect Green Technological Innovation? Empirical Evidence from China," Sustainability, MDPI, vol. 15(10), pages 1-17, May.
    7. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    8. So Young Kim & Eungdo Kim, 2018. "How Intellectual Property Management Capability and Network Strategy Affect Open Technological Innovation in the Korean New Information Communications Technology Industry," Sustainability, MDPI, vol. 10(8), pages 1-17, July.
    9. Laursen, Keld & Salter, Ammon J., 2014. "The paradox of openness: Appropriability, external search and collaboration," Research Policy, Elsevier, vol. 43(5), pages 867-878.
    10. Christoph Grimpe & Katrin Hussinger, 2014. "Resource complementarity and value capture in firm acquisitions: The role of intellectual property rights," Strategic Management Journal, Wiley Blackwell, vol. 35(12), pages 1762-1780, December.
    Full references (including those not matched with items on IDEAS)

    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. Shi, Xing & Wu, Yanrui & Fu, Dahai, 2020. "Does University-Industry collaboration improve innovation efficiency? Evidence from Chinese Firms⋄," Economic Modelling, Elsevier, vol. 86(C), pages 39-53.
    2. Chigu Kim & Chul Lee & Jina Kang, 2018. "Determinants Of Firm’S Innovation-Related External Knowledge Search Strategy: The Role Of Potential Absorptive Capacity And Appropriability Regime," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(06), pages 1-33, August.
    3. Alejandro Bello-Pintado & Felipe Berrutti & Carlos Bianchi & Pablo Blanchard, 2019. "Knowledge searching strategies, testing for complementarities on the innovation behavior of the firm," Documentos de Trabajo (working papers) 19-18, Instituto de Economía - IECON.
    4. Laura Barbieri & Daniela Bragoli & Flavia Cortelezzi & Giovanni Marseguerra, 2015. "Public Support to Innovation Strategies," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1509, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    5. Baldwin, Carliss Y. & Bogers, Marcel L.A.M. & Kapoor, Rahul & West, Joel, 2024. "Focusing the ecosystem lens on innovation studies," Research Policy, Elsevier, vol. 53(3).
    6. Chang, Sungyong & Kim, Hyunseob & Song, Jaeyong & Lee, Keun, 2024. "Dynamics of imitation versus innovation in technological leadership change: Latecomers’ catch-up strategies in diverse technological regimes," Research Policy, Elsevier, vol. 53(9).
    7. Miozzo, Marcela & Desyllas, Panos & Lee, Hsing-fen & Miles, Ian, 2016. "Innovation collaboration and appropriability by knowledge-intensive business services firms," Research Policy, Elsevier, vol. 45(7), pages 1337-1351.
    8. Dirk Czarnitzki & Katrin Hussinger & Bart Leten, 2020. "How Valuable are Patent Blocking Strategies?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 56(3), pages 409-434, May.
    9. Stefan, Ioana & Bengtsson, Lars, 2017. "Unravelling appropriability mechanisms and openness depth effects on firm performance across stages in the innovation process," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 252-260.
    10. Karin Beukel & Minyuan Zhao, 2018. "IP litigation is local, but those who litigate are global," Journal of International Business Policy, Palgrave Macmillan, vol. 1(1), pages 53-70, June.
    11. Mehmet Ali Köseoglu & John A. Parnell & Melissa Yan Yee Yick, 2021. "Identifying influential studies and maturity level in intellectual structure of fields: evidence from strategic management," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(2), pages 1271-1309, February.
    12. Qinghua Fu & Muhammad Safdar Sial & Muhammad Zulqarnain Arshad & Ubaldo Comite & Phung Anh Thu & József Popp, 2021. "The Inter-Relationship between Innovation Capability and SME Performance: The Moderating Role of the External Environment," Sustainability, MDPI, vol. 13(16), pages 1-14, August.
    13. Graciela Corral de Zubielqui & Janice Jones & David Audretsch, 2019. "The influence of trust and collaboration with external partners on appropriability in open service firms," The Journal of Technology Transfer, Springer, vol. 44(2), pages 540-558, April.
    14. Chiao, Benjamin & MacVaugh, Jason, 2021. "Open innovation and organizational features: An experimental investigation," European Management Journal, Elsevier, vol. 39(3), pages 376-389.
    15. Roberto Vivona & Mehmet Akif Demircioglu & David B. Audretsch, 2023. "The costs of collaborative innovation," The Journal of Technology Transfer, Springer, vol. 48(3), pages 873-899, June.
    16. Jean-François Hennart & Alain Verbeke, 2022. "Actionable and enduring implications of Oliver Williamson’s transaction cost theory," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1557-1575, October.
    17. Jianxin Ge & Tong Li, 2019. "Entrepreneurial Resources, Complementary Assets, and Platform Sustainability," Sustainability, MDPI, vol. 11(16), pages 1-20, August.
    18. Masatoshi Kato & Koichiro Onishi & Yuji Honjo, 2022. "Does patenting always help new firm survival? Understanding heterogeneity among exit routes," Small Business Economics, Springer, vol. 59(2), pages 449-475, August.
    19. Bei, Xiaoshu, 2019. "Trademarks, specialized complementary assets, and the external sourcing of innovation," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    20. Robin Cowan & Nicolas Jonard & Ruth Samson, 2024. "Strategies of search and patenting under different IPR regimes," Working Papers of BETA 2024-20, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

    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:17:y:2025:i:9:p:4093-:d:1647737. 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.