Internationalisation as a stimulus for SME innovation in developing economies: Comparing SMEs in factor-driven and efficiency-driven economies

Smallbone, David; Saridakis, George; Abubakar, Yazid Abdullahi

doi:10.1016/j.jbusres.2022.01.045

Cited by 33 publications

(25 citation statements)

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“…The presented results are another indication that we need to question the generalizability of results from BRICS countries, especially those from China. Research has to acknowledge the impact of a country’s level of development (Slesman et al , 2021; Smallbone et al , 2022), a circumstance that this study has taken into account. The paper’s results show the (non)-relevancy of specific aspects of institutional support based on a variety of companies located in different emerging countries.…”

Section: Discussionmentioning

confidence: 99%

“…In addition, a focus on innovation can strengthen the prosperity of countries as a whole (Vivarelli, 2014; Ferreira and Dionísio, 2016); consequently, the study of innovation and specifically how it is practiced has increased in emerging countries too (Njoroge et al , 2020; Zhang et al , 2019). In contrast to companies based in advanced countries, companies in emerging countries have to operate in environments that are characterized by institutions that are underdeveloped and constrain the companies’ capacity for innovation and which vary with a country’s level of development (Smallbone et al , 2022). Research suggests that institutional dimensions affect the activities of organizations from emerging countries in particular (Zhu et al , 2011; Yao et al , 2019; Stone et al , 2020).…”

Section: Introductionmentioning

confidence: 99%

“…Research suggests that institutional dimensions affect the activities of organizations from emerging countries in particular (Zhu et al , 2011; Yao et al , 2019; Stone et al , 2020). Thus, when there are stable and efficiently working institutions, the risks associated with innovation can be reduced (Slesman et al , 2021; Smallbone et al , 2022) and firms will independently develop the capabilities that are necessary for innovation (Rodríguez et al , 2022). The role played by the provision of a general infrastructure that is provided by governmental institutions is largely underexplored (Smallbone et al , 2022).…”

Section: Introductionmentioning

confidence: 99%

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The influence of institutional conditions on firms’ process innovation – evidence from firms based on a multi-country analysis

Durst

Leyer

2022

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Purpose Our understanding of the influence of institutional conditions on process innovation is still limited, despite managers’ need to know which factors should be considered in decision-making and governments should be aware of how to foster process innovation through the provision of attractive institutions. Therefore, this paper aims to examine how institutional dimensions such as workforce, political instability, labor regulation, corruption, tax administration and transportation influence process innovation in smaller firms located in emerging countries other than the BRICS (Brazil, Russia, India, China and South Africa). Design/methodology/approach A data set from the World Bank Enterprise Surveys questioning over 20,000 companies from 41 emerging countries supplemented by the gross domestic product (GDP) per capita for each country was used and analyzed by the means of general linear mixed models. The analysis emphasized small- and medium-sized enterprises (SMEs) and excluded BRICS countries. Findings The findings demonstrate which institutional factors matter for process innovation depending on company size and GDP. Research limitations/implications This paper advances research on the influence of institutions on firm innovation – the institution–process innovation relationship in emerging countries other than the BRICS in particular. By considering the role of company size and GDP per capita on the institution–process innovation relationship, the paper offers more nuanced insights compared with prior studies and thus makes a strong contribution to the innovation theory. The data used are not suitable for a longitudinal study the same refers to capturing the variety found in the countries even those coming from the same geographic area. Practical implications The results provide practitioners, e.g. managers of SMEs, with concrete ideas on how to improve process innovation in their companies. Other actors such as policymakers too can benefit from the results as they will allow the design of more target group-oriented measures, aspects that can ultimately lead to more sustainable businesses. Originality/value By focusing on process innovation and emerging countries, the paper contributes to growing research efforts in emerging countries beyond the BRICS. Thus, the results add more diversity to the study of process innovation and its influencing external (institutional) factors. The emphasis on SMEs also allows us to highlight differences between different categories of SMEs.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The influence of institutional conditions on firms’ process innovation – evidence from firms based on a multi-country analysis

Durst

Leyer

2022

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“…The role of MSMEs in the economy is very helpful for a country's economy (Ján, 2015;Junaidi et al, 2014), for that it is necessary to pay attention to the development of MSMEs (Lestantri et al, 2022;Nguyet, 2022;Tamvada et al, 2022). In the development of MSMEs, several ways are needed, including: MSME agglomeration by empowering the community (Marco-Lajara et al, https://www.ilomata.org/index.php/ijjm 2022; Sarfiah et al, 2019;Smallbone et al, 2022;Srijani, 2020). MSME agglomeration is believed to be a better approach because the business network formed through concentration will increase competitiveness (Ashary et al, 2021;Li et al, 2022;Putra, 2018;Wulandari et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

MSME Agglomeration and Image Branding Destinations in Tourism Village Development as an Economic Improvement for Rural Communities (Case Study at Sendang Senjoyo Tourism Object, Salatiga City)

Utami

Susanti

Sholeh

2022

ijjm

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Sendang Senjoyo is a pond that has its own spring and has a beautiful view. Located in Tegalwaton Village, Tingkir District, Salatiga Regency, Central Java, making it a tourist location that promises to be natural beauty with a cool atmosphere with the freshness of cold and clear water making it a suitable tourist spot to unwind and relax with family. With the existence of this tourist attraction, it helps the economy of the surrounding community through MSMEs that stand at the tourist attraction. This research method uses a qualitative descriptive approach, the purpose of this research is to find out how the agglomeration of SMEs and Image Branding Destinations in Tourism Village Development as an Economic Improvement of Village Community with the focus of research on SMEs in the tourist attraction of Sendang Senjoyo, Salatiga. The resource persons taken in this study amounted to 4 people consisting of the Head of Tegalwaton Village, Semarang Regency, the tourism object manager (BUMDES) Sendang Senjoyo, MSME actors in Sendang Senjoyo and the surrounding community or tourists. The results of this study indicate the management of the Senjoyo tourist attraction is carried out by the Tegalwaton Village government in collaboration with the Village-Owned Enterprises (BUMDES) and local communities. Image Branding Destination Sendang Senjoyo tourist attraction was built with the concept of spiritual, nature, entertainment, tree museum and springs. The lack of facilities and infrastructure at the Senjang Senjoyo tourist attraction which is still not optimal and not functioning properly, as well as the absence of natural resource development for MSME actors to be given training in improving the ability to manage business. The arrangement of selling places at the Sendang Senjoyo tourist attraction is also still not neatly arranged and the development of merchant places is not evenly distributed because many permanent buildings still use wood and tarpaulin.

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“…Analysis is based on data collected within the Monitor of Innovation Activities in Knowledge Intensive Industries, a nationwide survey implemented in conditions of the Slovak Republic. Secondly, the study is a respond to a request (Smallbone, Saridakis and Abubakar, 2022) to specifically focus on the evaluation of the impact of external knowledge, acquired within the international collaborative ties on the innovative performance of enterprises of different level of novelty.…”

Section: Introductionmentioning

confidence: 99%

Emergence of Product and Service Innovations of Different Level of Novelty in Knowledge Intensive SMEs: The Role of Open Innovation Patterns

Hrivnák

2022

QIP Journal

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Purpose: The aim of the contribution is to evaluate the importance of domestic and foreign collaborative ties between knowledge-intensive SMEs and knowledge sources for the creation of product and service innovations which we differentiate according to the spatial level of novelty. Methodology/Approach: In order to test the validity of the hypotheses which were justified in the context of previous research we adopt an econometric approach and specifically, due to the nature of the dependent variable, the logistic regression. Findings: The results support the hypotheses that the determinants of innovation in SMEs vary in case of innovations with different level of novelty. Open innovation practices are crucial rather for SMEs delivering innovations of products and services novel on national and international markets. Research Limitation/Implication: The research does not reflect the frequency of innovative products and services at the enterprise level as well as the impact of new products and services on turnover. Originality/Value of paper: In particular, the study brings new insights into the determinants of product innovation of a lower degree of novelty applied in local and regional markets which can be an important source of development for low-density economies.

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Internationalisation as a stimulus for SME innovation in developing economies: Comparing SMEs in factor-driven and efficiency-driven economies

Cited by 33 publications

References 59 publications

The influence of institutional conditions on firms’ process innovation – evidence from firms based on a multi-country analysis

The influence of institutional conditions on firms’ process innovation – evidence from firms based on a multi-country analysis

MSME Agglomeration and Image Branding Destinations in Tourism Village Development as an Economic Improvement for Rural Communities (Case Study at Sendang Senjoyo Tourism Object, Salatiga City)

Emergence of Product and Service Innovations of Different Level of Novelty in Knowledge Intensive SMEs: The Role of Open Innovation Patterns

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