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How Institutions Influence SME Innovation and Networking Practices: The Case of Vietnamese Agribusiness

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  • Thai Thi Minh
  • Carsten Nico Hjortsø

Abstract

This paper addresses impacts of the institutional framework on small and medium‐sized enterprise () innovation and networking practices. Through an explorative study of a domestic ‐dominated sector in ietnam, we find that the institutional framework limits incentives for long‐term investments, resulting in exploitative cost‐control strategies rather than product‐oriented innovation. Due to dominating social norms, form trust‐based friendship networks, potentially limiting knowledge acquisition and weakening business rationality. Institutional pressures reinforce negative influences on s' incentives to develop innovation ambidexterity. The findings suggest that new institutional economic sociology provides a promising foundation for understanding how institutional frameworks influence s' innovation practices in emerging economies.

Suggested Citation

  • Thai Thi Minh & Carsten Nico Hjortsø, 2015. "How Institutions Influence SME Innovation and Networking Practices: The Case of Vietnamese Agribusiness," Journal of Small Business Management, Taylor & Francis Journals, vol. 53(S1), pages 209-228, October.
    • Handle: RePEc:taf:ujbmxx:v:53:y:2015:i:s1:p:209-228
    DOI: 10.1111/jsbm.12189
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    Cited by:

    1. Rabab H. Saleh & Christopher M. Durugbo & Soud M. Almahamid, 2023. "What makes innovation ambidexterity manageable: a systematic review, multi-level model and future challenges," Review of Managerial Science, Springer, vol. 17(8), pages 3013-3056, November.
    2. Hameeda A. AlMalki & Christopher M. Durugbo, 2023. "Systematic review of institutional innovation literature: towards a multi-level management model," Management Review Quarterly, Springer, vol. 73(2), pages 731-785, June.
    3. Istipliler, Baris & Bort, Suleika & Woywode, Michael, 2023. "Flowers of adversity: Institutional constraints and innovative SMEs in transition economies," Journal of Business Research, Elsevier, vol. 154(C).

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