IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v14y2023i3d10.1007_s13132-022-01004-y.html
   My bibliography  Save this article

How Small and Medium Enterprises Achieve Innovation Performance? An Investigation of Influential Factors

Author

Listed:
  • Zahid Yousaf

    (Government College of Management Sciences)

  • Mosab I. Tabash

    (Al Ain University)

  • Abdelmohsen A. Nassani

    (King Saud University)

  • Mohamed Haffar

    (Department of Management, Birmingham Business School)

Abstract

The study in hand investigated the innovation performance (IP) of SMEs explaining the role of digital platforms (DPs), innovation strategy (IS), and innovation culture (IC). In the current study, we also tested the intervening role of IC. A total of 387 top management officials served in SMEs were approached for the purpose of data collection. For the purpose of data analysis, SPSS 25.0 and various statistical techniques were used for analysis. Results revealed that DPs significantly predicted IC and IP of SMEs. Moreover, the outcomes of analysis also revealed that IC plays a mediating role between DPs and IP. The SMEs of developing economies contribute significantly, however operating in a dynamic scenario which demanded continuous innovation in the business operation of the business entities. Only those businesses survive in the dynamic environment which updates its operation, methods, and products according to customers’ demand. Hence, IP becomes critical for SMEs to flourish the business activities. Therefore, the current research endeavor highlights the role of DPs, IC, and IS on innovation activities of SMEs.

Suggested Citation

  • Zahid Yousaf & Mosab I. Tabash & Abdelmohsen A. Nassani & Mohamed Haffar, 2023. "How Small and Medium Enterprises Achieve Innovation Performance? An Investigation of Influential Factors," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(3), pages 3395-3408, September.
  • Handle: RePEc:spr:jknowl:v:14:y:2023:i:3:d:10.1007_s13132-022-01004-y
    DOI: 10.1007/s13132-022-01004-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-022-01004-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s13132-022-01004-y?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. Arun Rai & Xinlin Tang, 2010. "Leveraging IT Capabilities and Competitive Process Capabilities for the Management of Interorganizational Relationship Portfolios," Information Systems Research, INFORMS, vol. 21(3), pages 516-542, September.
    2. 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.
    3. Julia C. Naranjo Valencia & Raquel Sanz Valle & Daniel Jiménez Jiménez, 2010. "Organizational culture as determinant of product innovation," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 13(4), pages 466-480, October.
    4. Teece, David J., 2018. "Profiting from innovation in the digital economy: Enabling technologies, standards, and licensing models in the wireless world," Research Policy, Elsevier, vol. 47(8), pages 1367-1387.
    5. Aksoy, Hasan, 2017. "How do innovation culture, marketing innovation and product innovation affect the market performance of small and medium-sized enterprises (SMEs)?," Technology in Society, Elsevier, vol. 51(C), pages 133-141.
    6. Lin, Jiabao & Luo, Zhimei & Luo, Xin, 2020. "Understanding the roles of institutional pressures and organizational innovativeness in contextualized transformation toward e-business: Evidence from agricultural firms," International Journal of Information Management, Elsevier, vol. 51(C).
    7. Ghasemaghaei, Maryam & Calic, Goran, 2020. "Assessing the impact of big data on firm innovation performance: Big data is not always better data," Journal of Business Research, Elsevier, vol. 108(C), pages 147-162.
    8. Hasliza Abdul Halim & Noor Hazlina Ahmad & T. Ramayah & Haniruzila Hanifah & Seyedeh Khadijeh Taghizadeh & Marini Nurbanum Mohamad, 2015. "Towards an Innovation Culture: Enhancing Innovative Performance of Malaysian SMEs," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 4, July.
    9. Gonzalez, Rodrigo Valio Dominguez & de Melo, Tatiana Massaroli, 2018. "The effects of organization context on knowledge exploration and exploitation," Journal of Business Research, Elsevier, vol. 90(C), pages 215-225.
    10. Mikalef, Patrick & Pateli, Adamantia, 2017. "Information technology-enabled dynamic capabilities and their indirect effect on competitive performance: Findings from PLS-SEM and fsQCA," Journal of Business Research, Elsevier, vol. 70(C), pages 1-16.
    11. Danilo Pesce & Paolo Neirotti & Emilio Paolucci, 2019. "When culture meets digital platforms: value creation and stakeholders’ alignment in big data use," Current Issues in Tourism, Taylor & Francis Journals, vol. 22(15), pages 1883-1903, September.
    12. Wen Jun & Muhammad Hamid Nasir & Zahid Yousaf & Amira Khattak & Muhammad Yasir & Asad Javed & Syed Hamad Shirazi, 2021. "Innovation performance in digital economy: does digital platform capability, improvisation capability and organizational readiness really matter?," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 25(5), pages 1309-1327, May.
    13. Yunis, Manal & Tarhini, Abbas & Kassar, Abdulnasser, 2018. "The role of ICT and innovation in enhancing organizational performance: The catalysing effect of corporate entrepreneurship," Journal of Business Research, Elsevier, vol. 88(C), pages 344-356.
    14. Helfat, Constance E. & Raubitschek, Ruth S., 2018. "Dynamic and integrative capabilities for profiting from innovation in digital platform-based ecosystems," Research Policy, Elsevier, vol. 47(8), pages 1391-1399.
    15. Zhi Chen & Shenglan Huang & Chong Liu & Min Min & Liying Zhou, 2018. "Fit between Organizational Culture and Innovation Strategy: Implications for Innovation Performance," Sustainability, MDPI, vol. 10(10), pages 1-18, September.
    16. Giotopoulos, Ioannis & Kontolaimou, Alexandra & Korra, Efthymia & Tsakanikas, Aggelos, 2017. "What drives ICT adoption by SMEs? Evidence from a large-scale survey in Greece," Journal of Business Research, Elsevier, vol. 81(C), pages 60-69.
    17. Curado, Carla & Muñoz-Pascual, Lucía & Galende, Jesús, 2018. "Antecedents to innovation performance in SMEs: A mixed methods approach," Journal of Business Research, Elsevier, vol. 89(C), pages 206-215.
    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. Matarazzo, Michela & Penco, Lara & Profumo, Giorgia & Quaglia, Roberto, 2021. "Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective," Journal of Business Research, Elsevier, vol. 123(C), pages 642-656.
    20. Viglia, Giampaolo & Pera, Rebecca & Bigné, Enrique, 2018. "The determinants of stakeholder engagement in digital platforms," Journal of Business Research, Elsevier, vol. 89(C), pages 404-410.
    21. Kazan, Erol & Tan, Chee-Wee & Lim, Eric T.K & Sørensen, Carsten & Damsgaard, Jan, 2018. "Disentangling digital platform competition: the case of UK mobile payment platforms," LSE Research Online Documents on Economics 86345, London School of Economics and Political Science, LSE Library.
    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. Jiang, Hong & Yang, Jingxuan & Gai, Jinlong, 2023. "How digital platform capability affects the innovation performance of SMEs—Evidence from China," Technology in Society, Elsevier, vol. 72(C).
    2. Zahid Sarwar & Jingmei Gao & Adnan Khan, 2024. "Nexus of digital platforms, innovation capability, and strategic alignment to enhance innovation performance in the Asia Pacific region: a dynamic capability perspective," Asia Pacific Journal of Management, Springer, vol. 41(2), pages 867-901, June.
    3. Jingmei Gao & Zahid Sarwar, 2024. "How do firms create business value and dynamic capabilities by leveraging big data analytics management capability?," Information Technology and Management, Springer, vol. 25(3), pages 283-304, September.
    4. 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).
    5. Etienne Thenoz & Solène Juteau & Frantz Rowe, 2024. "E-commerce transformation: A literature review from an institutional and organizational perspective," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-20, December.
    6. Wang, Yonggui & Tian, Qinghong & Li, Xia & Xiao, Xiaohong, 2022. "Different roles, different strokes: How to leverage two types of digital platform capabilities to fuel service innovation," Journal of Business Research, Elsevier, vol. 144(C), pages 1121-1128.
    7. Wang, Bing & Ma, Ming & Zhang, Zongyi & Li, Chunhong, 2024. "How do the key capabilities of the industrial internet platform support its growth? A longitudinal case study based on the resource orchestration perspective," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    8. Chen, Yantai & Luo, Haibei & Chen, Jin & Guo, Yanlin, 2022. "Building data-driven dynamic capabilities to arrest knowledge hiding: A knowledge management perspective," Journal of Business Research, Elsevier, vol. 139(C), pages 1138-1154.
    9. Klos, Christoph & Spieth, Patrick, 2021. "READY, STEADY, DIGITAL?! How foresight activities do (NOT) affect individual technological frames for managerial SENSEMAKING," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    10. Plekhanov, Dmitry & Franke, Henrik & Netland, Torbjørn H., 2023. "Digital transformation: A review and research agenda," European Management Journal, Elsevier, vol. 41(6), pages 821-844.
    11. Liao, Zhongju & Chen, Jie & Chen, Xueli & Song, Malin, 2024. "Digital platform capability, environmental innovation quality, and firms’ competitive advantage: The moderating role of environmental uncertainty," International Journal of Production Economics, Elsevier, vol. 268(C).
    12. Li, Lei & Lin, Jiabao & Ouyang, Ye & Luo, Xin (Robert), 2022. "Evaluating the impact of big data analytics usage on the decision-making quality of organizations," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    13. Wu, Chih-Wen & Botella-Carrubi, Dolores & Blanco-González-Tejero, Cristina, 2024. "The empirical study of digital marketing strategy and performance in small and medium-sized enterprises (SMEs)," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    14. Ghulam Mustafa & Hans Solli-Sæther & Virginia Bodolica & Jon Ivar Håvold & Anam Ilyas, 2022. "Digitalization trends and organizational structure: bureaucracy, ambidexterity or post-bureaucracy?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(4), pages 671-694, December.
    15. Lei Shen & Xi Zhang & Hongda Liu, 2022. "Digital technology adoption, digital dynamic capability, and digital transformation performance of textile industry: Moderating role of digital innovation orientation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2038-2054, September.
    16. Sang-Uk Jung & Valeriia Shegai, 2023. "The Impact of Digital Marketing Innovation on Firm Performance: Mediation by Marketing Capability and Moderation by Firm Size," Sustainability, MDPI, vol. 15(7), pages 1-16, March.
    17. Zhongyuan Sun & Di Hu & Xuming Lou, 2024. "The Impact of Digital Transformation on the Sustainable Growth of Specialized, Refined, Differentiated, and Innovative Enterprises: Based on the Perspective of Dynamic Capability Theory," Sustainability, MDPI, vol. 16(17), pages 1-25, September.
    18. 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).
    19. Ruofan Zhao & Zhengai Dong & Hongping Wu & Stavros Sindakis & Saloome Showkat & Xinglong Yang, 2025. "Harnessing Big Data for Strategic Innovation: Insights into Corporate Entrepreneurship and Technological Advancements," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 5238-5270, March.
    20. Weili Yin & Wenxue Ran, 2021. "Theoretical Exploration of Supply Chain Viability Utilizing Blockchain Technology," Sustainability, MDPI, vol. 13(15), pages 1-25, July.

    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:spr:jknowl:v:14:y:2023:i:3:d:10.1007_s13132-022-01004-y. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.