--

10 (2) 2020

Innovative capacity in micro, small and medium enterprises: Review of international articles on empirical research


Author - Affiliation:
Truong Thi Hoang Oanh - University of Economics Ho Chi Minh City - Campus in Vinh Long , Vietnam
Duong Ngoc Thanh - Can Tho University , Vietnam
Truong Thi Be Hai - Tra Vinh University , Vietnam
Corresponding author: Truong Thi Hoang Oanh - oanhtth@ueh.edu.vn

Abstract
The purposes of the article are to evaluate the current status of innovation capacity studies and propose directions for future research. Thirty - six articles in international empirical research on business, in particular micro, small, and medium-sized enterprises (MSMEs) were identified from Springer, Emerald, and ScienceDirect. Findings reveal most studies on innovation capacity focus on two lines of research: determinants of innovation capacity (process) and consequences on innovation capacities (outcome). The quantitative approach is the dominant research method. Some research directions are proposed that cover outstanding themes as follows: (1) considering quantitative research method, (2) exploring innovation capacity on the service sector, (3) identifying innovation capacity on stakeholders in supply chain perspectives, (4) delving into how firm results can be affected in each type of innovation capacity, (5) examining the mediator of specific types of innovation capacities in the relationship between many other factors such as customer orientation, or market orientation or/and corporate social responsibility and / knowledge management and networking with business outcomes in term of the supply chain perspectives.

Keywords
innovation capacity; small businesses; MSMEs; review

Full Text:
PDF

Cite this paper as:

Truong, T. H. O., Duong, N. T., & Truong, T. B. H. (2020). Innovative capacity in Micro, Small and Medium Enterprises: Review of international articles on empirical research. Ho Chi Minh City Open University Journal of Science – Economics and Business Administration, 10(4), 146-154. doi:10.46223/HCMCOUJS.econ.en.10.2.585.2020


References

Agostini, L., Nosella, A., & Soranzo, B. (2017). Measuring the impact of relational capital on customer performance in the SME B2B sector: The moderating role of absorptive capacity. Business Process Management Journal, 23(6), 1144-1166. doi:10.1108/BPMJ-10-2016-0205


Ali, Z., Zwetsloot, I. M., & Nada, N. (2019). An empirical study to explore the interplay of managerial and operational capabilities to infuse organizational innovation in SMEs. Procedia Computer Science, 158, 260-269. doi:10.1016/j.procs.2019.09.050


Al-Ansari, Y., Pervan, S., & Xu, J. (2013). Innovation and business performance of SMEs: The Case of Dubai. Education, Business and Society: Contemporary Middle Eastern Issues, 6(3/4), 162-180. doi:10.1108/EBS-04-2013-0012


Baba, Y. (2012). Adopting a specific innovation type versus composition of different innovation types: case study of a Ghanaian bank. International Journal of Bank Marketing, 30(3), 218-240.


Bakar, L. J. A., & Ahmad, H. (2010). Assessing the relationship between firm resources and product innovation performance: A re-source-based view. Business Process Management Journal, 16(3), 420-435.


Beaver, G., & Prince, C. (2002). Innovation, entrepreneurship and competitive advantage in the entrepreneurial venture. Journal of Small Business and Enterprise Development, 9(1), 28-37. doi:10.1108/14626000210419464


Boly, V., Morel, L., Assielou, N. D. G., & Camargo, M. (2014). Evaluating innovative processes in french firms: Methodological proposition for firm innovation capacity evaluation. Research Policy, 43(3), 608-622. doi:10.1016/j.respol.2013.09.005


Budhwar, P., Pereira, V., Mellahi, K., & Singh, S. K. (2019). The state of HRM in the Middle East: Challenges and future research agenda. Asia Pacific Journal of Management, 36(4), 905-933.


Çakar, N. D., & Ertürk, A. (2010). Comparing innovation capability of small and medium‐sized enterprises: Examining the effects of organizational culture and empowerment. Journal of Small Business Management, 48(3), 325-359.


Cardozo, R., McLaughlin, K., Harmon, B., Reynolds, P., & Miller, B. (1993). Product-market choices and growth of new businesses. Journal of Product Innovation Management: An International Publication of The Product Development & Management Association, 10(4), 331-340.


Castela, B. M. S., Ferreira, F. A. F., Ferreira, J. J. M., & Marques, C. S. E. (2018). Assessing the innovation capability of small-and medium-sized enterprises using a non-parametric and integrative approach. Management Decision, 56(6), 1365-1383. doi:10.1108/MD-02-2017-0156


Chatzoglou, P., & Chatzoudes, D. (2018). The role of innovation in building competitive advantages: An empirical investigation. European Journal of Innovation Management, 21(1), 44-69. doi:10.1108/EJIM-02-2017-0015


Csath, M. (2012). Encouraging innovation in small and medium sized businesses: Learning matters. Development and Learning in Organizations: An International Journal, 26(5), 9-13.


David, C. R., Ryman, J., & White, J. (2014). Culture, conduct and innovation: A deconstruction of market orientation. Journal of Research in Marketing and Entrepreneurship, 16(2), 128-145. doi:10.1108/JRME-01-2014-0002


De Martino, M., & Magnotti, F. (2018). The innovation capacity of small food firms in Italy. European Journal of Innovation Management, 21(3), 362-383.


Donkor, J., Donkor, G. N. A., Kankam-Kwarteng, C., & Aidoo, E. (2018). Innovative capability, strategic goals and financial performance of SMEs in Ghana. Asia Pacific Journal of Innovation and Entrepreneurship, 12(2), 238-254. doi:10.1108/APJIE-10-2017-0033


Forsman, H. (2011). Innovation capacity and innovation development in small enterprises: A comparison between the manufacturing and service sectors. Research Policy, 40(5), 739-750. doi:10.1016/j.respol.2011.02.003


Kafetzopoulos, D., & Psomas, E. (2015). The impact of innovation capability on the performance of manufacturing companies. Journal of Manufacturing Technology Management, 26(1), 104-130.


Kafetzopoulos, D., & Skalkos, D. (2019). An audit of innovation drivers: Some empirical findings in Greek agri-food firms. European Journal of Innovation Management, 22(2), 361-382. doi:10.1108/EJIM-07-2018-0155


Landoni, P., Dell'Era, C., Ferraloro, G., Peradotto, M., Karlsson, H., & Verganti, R. (2016). Design contribution to the competitive performance of SMEs: The role of design innovation capabilities. Creativity and Innovation Management, 25(4), 484-499.


Lewrick, M., Chen, T., Raeside, R., & Omar, M. (2012). Exploration of innovation capabilities of firms in Liaoning and Henan provinces. Journal of Science and Technology Policy in China, 3(3), 242-263. doi:10.1108/17585521211268691


Maldonado-Guzmán, G., Garza-Reyes, J. A., Pinzón-Castro, S. Y., & Kumar, V. (2019). Innovation capabilities and performance: Are they truly linked in SMEs? International Journal of Innovation Science, 11(1), 48-62. doi:10.1108/IJIS-12-2017-0139


Mahmoud, M. A., & Hinson, R. E. (2012). Market orientation, innovation and corporate social responsibility practices in Ghana's telecommunication sector. Social Responsibility Journal, 8(3), 327-346. doi:10.1108/17471111211247910


Martínez-Román, J. A., Gamero, J., & Tamayo, J. A. (2011). Analysis of innovation in SMEs using an innovative capability-based non-linear model: A study in the province of Seville (Spain). Technovation, 31(9), 459-475. doi:10.1016/j.technovation.2011.05.005


Naranjo-Valencia, J. C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2016). Studying the links between organizational culture, innovation, and performance in Spanish companies. Revista Latinoamericana de Psicología, 48(1), 30-41. doi:10.1016/j.rlp.2015.09.009


Omri, W. (2015). Innovative behavior and venture performance of SMEs: The moderating effect of environmental dynamism. European Journal of Innovation Management, 18(2), 195-217. doi:10.1108/EJIM-02-2013-0015


Raghuvanshi, J., Agrawal, R., & Ghosh, P. K. (2019). Measuring the innovation capability of micro enterprises in India: Construct development and validation. Benchmarking: An International Journal, 26(5), 1405-1430. doi:10.1108/BIJ-08-2018-0229


Raghuvanshi, J., & Garg, C. P. (2018). Time to get into the action: Unveiling the unknown of innovation capability in Indian MSMEs. Asia Pacific Journal of Innovation and Entrepreneurship, 12(3), 279-299. doi:10.1108/APJIE-06-2018-0041


Rajapathirana, R. P. J., & Hui, Y. (2018). Relationship between innovation capability, innovation type, and firm performance. Journal of Innovation & Knowledge, 3(1), 44-55. doi:10.1016/j.jik.2017.06.002


Sandvik, I. L., & Sandvik, K. (2003). The impact of market orientation on product innovativeness and business performance. International Journal of Research in Marketing, 20(4), 355-376.


Saunila, M. (2017). Understanding innovation performance measurement in SMEs. Measuring Business Excellence, 21(1), 1-16.


Saunila, M., & Ukko, J. (2014). Intangible aspects of innovation capability in SMEs: Impacts of size and industry. Journal of Engineering and Technology Management, 33, 32-46. doi:10.1016/j.jengtecman.2014.02.002


Song, Z.-h. (2015). Organizational learning, absorptive capacity, imitation and innovation: Empirical analyses of 115 firms across China. Chinese Management Studies, 9(1), 97-113. doi:10.1108/CMS-05-2014-0092


Tamayo-Torres, I., Gutiérrez-Gutiérrez, L. J., Llorens-Montes, F. J., & Martínez-López, F. J. (2016). Organizational learning and innovation as sources of strategic fit. Industrial Management & Data Systems, 116(8), 1445-1467. doi:10.1108/IMDS-12-2015-0518


Taneja, S., Pryor, M. G., & Hayek, M. (2016). Leaping innovation barriers to small business longevity. Journal of Business Strategy, 37(3), 44-51. doi:10.1108/JBS-12-2014-0145


Utterback, J. (1994). Mastering the dynamics of innovation: How companies can seize opportunities in the face of technological change. Boston, MA: Havard Business Press.


Wahyuni, N. M., & Sara, I. M. (2020). The effect of entrepreneurial orientation variables on business performance in the SME industry context. Journal of Workplace Learning, 32(1), 35-62. doi:10.1108/JWL-03-2019-0033


Weerawardena, J., & O'Cass, A. (2004). Exploring the characteristics of the market-driven firms and antecedents to sustained competitive advantage. Industrial Marketing Management, 33(5), 419-428.


Yildiz, H. E., Murtic, A., Klofsten, M., Zander, U., & Richtnér, A. (in press). Individual and contextual determinants of innovation performance: A micro-foundations perspective. Retrieved May 11, 2020, from https://www.researchgate.net/publication/343451600_ Individual_and_contextual_determinants_of_innovation_performance_A_micro-_foundations_perspective


Zheng, Y., Liu, J., & George, G. (2010). The dynamic impact of innovative capability and inter-firm network on firm valuation: A longitudinal study of biotechnology start-ups. Journal of Business Venturing, 25(6), 593-609.



Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.