New Product Creativity Mediating the Relationship Between Organizational Bricolage and the Competitive Advantage of SMEs

Abstract

It is well-documented in literature that one major challenge facing Small and Medium-sized Enterprises (SMEs) is resource constraints. This affects SMEs’ potential for innovation, as innovation is resource-intensive. To survive the competition, it is expedient that SMEs find more creative and innovative ways to operate. This present study sought to ascertain how SMEs could adopt a bricolage strategy to achieve a competitive advantage. The study also sought to determine the mediating role of new product creativity in this relationship, which formed a key contribution. Data was gathered from 334 SMEs using a simple random sampling technique. The data was analyzed using the covariance-based structural equation modelling (CB-SEM) approach in Amos (v.23). Various validity and reliability tests were run before testing the significance of the various hypotheses of the study. It was concluded that bricolage had a direct positive effect on SMEs’ competitive advantage. Bricolage further had a direct positive impact on new product creativity, whiles new product creativity had a direct positive effect on SMEs’ competitive advantage. It was also realized that creativity had a partial mediating effect on the relationship between bricolage and SMEs’ competitive advantage. Although this study did not directly assess the influence of the COVID-19 pandemic on business operations, the data for the study was gathered during the pandemic period, as such, the results of this present study could offer some practical clues on how firms could achieve competitive advantage during the outbreak of pandemics.

The influence of product creativity on competitive advantage

“…Creativity requires time and sacrificed productivity and thus can only positively affect perceived threats where resources are sufficiently available within an organisation. When combined with the capabilities of each individual in the organisation, organisational resources allow for creativity as the ability of an entity (individual or organisation) to create new and potentially valuable ideas and products through imaginative skills (Florida, 2012;Chibuzor, 2014;Tian et al, 2021).…”

“…The creative mind is challenged through obstacles, threats or a need to progress and overcome limitations to creativity and innovation (Amabile, 1996;Damanpour, 1991;Amabile & Pratt, 2016;Oguz A, Acar, et al, 2018). Tian et al (2021) define the product creativity of a company as the ability to develop a new product with features or characteristics that exceed those available on the market to meet unmet needs. New product development begins with a good knowledge of the product you are developing, and existing areas of knowledge help MSMEs creatively develop their products.…”

“…Product creativity focuses on the product and how it will interact with its market. Thus, the process of product creativity in organisations links individual employees, immediate tasks within the business, and the organisation's larger strategic goals (Chibuzor, 2014;Tian et al, 2021). According to Amabile and Pratt (2016), product creativity within an organisation requires a tradeoff between what is needed to actuate the individual's creativity and the organisational investment to realise that innovation.…”

“…The product creativity of a company is the ability to develop new products with features or attributes that are different from competitors to satisfy unmet consumer needs. (Tian et al, 2021).…”

“…If MSME wants to gain a competitive advantage, the company must have the ability to bring creativity to the development of superior products and realise value and benefits in the market. (Grant, 1991;Ivanová & Čepel, 2018;Tian et al, 2021).…”