Innovation as Competitiveness Driving Force Through the Resources and Capacities of SMEs in Costa Rica, Puerto Rico, and Dominican Republic

Abstract

Literature reflects that Latin America and the Caribbean register more SMEs and produce more entrepreneurial activity than any other place in the world. Using the Theory of Resources and Capabilities, this research explored how SMEs in Costa Rica, Puerto Rico, and the Dominican Republic managed the heterogeneity of their entrepreneurial orientation, market orientation, social and human capital resources and their impact on innovation capacity and competitiveness. With a survey of 467 SMEs and the analysis of data with the use of PLS-SEM & PLS-MGA, this study contributed new information based on resources and capacities that showed the maximum set of possible variables analyzed for a theoretical understanding and practice of the heterogeneity of resources. The results reflected a positive impact on the proposed hypothesis through the structural model. The data highlight market orientation as the most valuable resource that facilitates innovation and competitiveness in SMEs analyzed. The results revealed and contributed to the new lines of research on how differences and the degree of importance in managing resources generated high competitiveness through their capacity for innovation.

Business Environment, Attitudes and Entrepreneurial Intentions as Antecedents of Entrepreneurial Inclination among University Students

“…This research focused on the Dominican Republic. In the last decade, the country has had one of the fastest growing economies in Latin America and the Caribbean [48], which has led to the creation of new businesses [2,3]. In turn, many universities in the country have promoted entrepreneurship training as a transversal educational offer, including this training in all study programmes.…”

“…Entrepreneurship has played a significant role in the economic prosperity and social stability of many developed countries [1]. In this regard and for some years now, the business environment for starting a new firm in the Dominican Republic has been considered very conducive [2,3]. This has led many of the country's universities to promote entrepreneurship training as a cross-cutting educational offer in any area of study.…”

The Moderating Influence of Government Policy on The Innovation Capability-Competitiveness Relationship in Food SMES

“…The innovation capability of SMEs has been investigated by several previous researchers but in a different analytical framework from this research. For example, Mendez-Vega et al (2021) analyze innovation capability as a mediation between resource-based and SME competitiveness, Pranowo et al (2021) also analyze innovation capability as a mediation between knowledge sharing and SMEs performance, Siahaan & Tan (2020) analyze innovation capability as a mediation between intellectual capital, learning capability, technology orientation and innovative milieu with SMEs performance. This study analyzes innovation capability as an independent variable and competitiveness as the dependent variable.…”

When ‘Good Enough’ Is Not Enough: The Role of Maximizing or Satisficing Decision-Making Styles, Innovation Behavior, and Entrepreneurial Alertness in the Pursuit of New Business Opportunities

“…Innovation and entrepreneurship are inextricably linked and complementary in helping organizations thrive in dynamic environments (Mendez-Vega et al, 2021;F. Zhao, 2005).…”