Innovation capabilities and performance: Are they truly linked in SMEs?
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Universidad Autónoma de AguascalientesUniversity of Derby
University of the West of England
Issue Date
2018-07
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Purpose In an environment where business uncertainty is the norm, developing innovation capability in an organisation is increasingly important. The purpose of this paper is to investigate the effects that innovation capabilities have on the business performance of small- and medium-sized enterprises (SMEs) within the context of a regional developing and emerging economy of Mexico, in this case, Aguascalientes. Design/methodology/approach The approach of this study is quantitative. Four research hypotheses were formulated and tested using structural equation modelling (SEM). Data were collected through a questionnaire survey responded by 308 SMEs located in the Aguascalientes state of Mexico. Findings The results obtained show that innovation in products, processes, marketing and management has a positive and significant effect on the business return of Mexican SMEs. Originality/value The paper complements the limited body of knowledge currently existent in the SMEs innovation literature, particularly when compared to that of large organisations. Similar works in other settings have provided mixed results in regards to the effects that innovation capabilities have on the business performance of SMEs. Thus, this paper offers a refined understanding and validation of the relationship between innovation capabilities and business performance, especially within the context of SMEs, and insights into some of the innovation aspects that managers may consider when formulating the strategies of their organisations. Finally, it enables such relationship to be understood within a particular situation, contributing in this manner to expand the body of knowledge in the innovation field.Citation
Garza-Reyes, J. A. et al (2018) 'Innovation capabilities and performance: Are they truly linked in SMEs?', International Journal of Innovation Science, DOI: 10.1108/IJIS-12-2017-0139Publisher
EmeraldJournal
International Journal of Innovation ScienceDOI
10.1108/IJIS-12-2017-0139Additional Links
https://www.emeraldinsight.com/doi/full/10.1108/IJIS-12-2017-0139Type
ArticleLanguage
enISSN
17572223ae974a485f413a2113503eed53cd6c53
10.1108/IJIS-12-2017-0139