Enhancing the Innovation Performance of Small and Medium-Sized Enterprises Through Network Embeddedness
Wisdom Wise Kwabla Pomegbe, Wenyuan Li*, Courage Simon Kofi Dogbe, Charles Oduro Acheampong Otoo
competitiveness, innovation performance, network embeddedness, relational embeddedness, structural
embeddedness, cognitive embeddedness
Based on Resource Based Theory (RBT), the competitiveness of Small and Medium-sized Enterprises
(SMEs) depends on the uniqueness of resources used in the production and delivering
of goods and services. Moreover, the innovation capability of SMEs is critical in enhancing their
uniqueness. Various factors, however, could potentially influence SME innovation performance.
This present study thus focuses on how SME innovation performance could be enhanced
through the three dimensions of network embeddedness (relational, structural and cognitive).
Founded on Resource Dependency Theory (RDT), the study seeks to demonstrate how SMEs
could tap into the rich external resources within the networks they are embedded in. The study
was based on 388 SMEs selected using a purposive sampling technique. A structured questionnaire
was used for the data collection, with the data analyzed by structural equation modeling
performed in Amos (v.20). The findings revealed that relational, structural and cognitive embeddedness
had a positive effect on innovation performance, while structural embeddedness had the
greatest impact on SME innovation performance. As such, SMEs seeking to improve their innovation
performance through networks should pay critical attention to the network tie and density.
Past studies on network embeddedness and innovation performance have shown conflicting
results, and therefore this present study makes a notable contribution to the ongoing debate. Past
studies have indicated a positive, negative, inverted u-shape, and even no significant relationship
at all between the various dimensions of network embeddedness and innovation performance.
Enhancing the Innovation Performance of Small and Medium-Sized Enterprises Through Network Embeddedness [PDF file] [Filesize: 1.16 MB]
Pomegbe, W. W. K., Li, W., Dogbe, C. S. K., & Otoo, C. O. A. (2020). Enhancing the Innovation
Performance of Small and Medium-Sized Enterprises Through Network Embeddedness. Journal of
Competitiveness, 12(3), 156–171. https://doi.org/10.7441/joc.2020.03.09