TY - JOUR
T1 - The relationship between innovation and performance in MSMEs
T2 - The case of the wearing apparel sector in emerging countries
AU - Larios-Francia, Rosa Patricia
AU - Ferasso, Marcos
N1 - Publisher Copyright:
© 2023 The Author(s)
PY - 2023/3
Y1 - 2023/3
N2 - In a global context of change and uncertainty, the innovation capacity of organizations is key to their sustained development. The objective of this study is to empirically analyze the relationship between innovation and firm performance of micro, small and medium-sized enterprises (MSMEs) in emerging countries and to study the moderating role of investment and collaboration in these relationships. The least squares structural equation model (PLS-SEM) analyzed a sample of 104 SMEs in the wearing apparel sector in Peru and Colombia. Product Innovation together with Business Process Innovation, explained 47.1 % of organizational performance, 41.0 % of economic performance, 39.5 % of commercial performance and 36.9 % of productive performance. However, Product Innovation was not a significant predictor of productive or organizational performance. The moderating effect of Investment on the relationship between Product Innovation and Business Process Innovation and Firm performance was only significant for organizational and productive performance and with respect to the moderating effect of Collaboration on the relationship between Product innovation and Business Process Innovation and Firm performance, in the quantitative analysis no significant prediction was obtained, supported by the results of the surveys where 62.8 % of the MSMEs never received supported from others actors for the development of innovation activities. The application of the findings of this study can contribute to the validation, updating or implementation of public policies that promote collaboration between actors of the innovation ecosystem, as well as in proposal of investment strategies for the development of innovation in emerging countries.
AB - In a global context of change and uncertainty, the innovation capacity of organizations is key to their sustained development. The objective of this study is to empirically analyze the relationship between innovation and firm performance of micro, small and medium-sized enterprises (MSMEs) in emerging countries and to study the moderating role of investment and collaboration in these relationships. The least squares structural equation model (PLS-SEM) analyzed a sample of 104 SMEs in the wearing apparel sector in Peru and Colombia. Product Innovation together with Business Process Innovation, explained 47.1 % of organizational performance, 41.0 % of economic performance, 39.5 % of commercial performance and 36.9 % of productive performance. However, Product Innovation was not a significant predictor of productive or organizational performance. The moderating effect of Investment on the relationship between Product Innovation and Business Process Innovation and Firm performance was only significant for organizational and productive performance and with respect to the moderating effect of Collaboration on the relationship between Product innovation and Business Process Innovation and Firm performance, in the quantitative analysis no significant prediction was obtained, supported by the results of the surveys where 62.8 % of the MSMEs never received supported from others actors for the development of innovation activities. The application of the findings of this study can contribute to the validation, updating or implementation of public policies that promote collaboration between actors of the innovation ecosystem, as well as in proposal of investment strategies for the development of innovation in emerging countries.
KW - Business process innovation
KW - Collaboration
KW - Emerging countries
KW - Firm performance
KW - Investment
KW - Product innovation
KW - Innovación de procesos de negocio
KW - Colaboración
KW - Países emergentes
KW - Desempeño empresarial
KW - Inversión
KW - Innovación de producto
UR - http://www.scopus.com/inward/record.url?scp=85153778820&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/489f27ed-24d3-3c35-a09b-233aafab02c5/
U2 - 10.1016/j.joitmc.2023.100018
DO - 10.1016/j.joitmc.2023.100018
M3 - Article in a journal
AN - SCOPUS:85153778820
SN - 2199-8531
VL - 9
JO - Journal of Open Innovation: Technology, Market, and Complexity
JF - Journal of Open Innovation: Technology, Market, and Complexity
IS - 1
M1 - 100018
ER -