Organisational capabilities and small and medium sized firms’ attainment of innovation outcomes: the moderating roles of exports and formal business networks

Weixi Liu, Liu Gordon, Wai Wai Ko

Research output: Contribution to journalArticlepeer-review

3 Citations (SciVal)
58 Downloads (Pure)

Abstract

Purpose
The authors examine the influence of planning and execution capability (PEC) and operational improvement capability (OIC) on small-and-medium-sized firms’ (SMEs) attainment of different innovation outcomes under the conditions of exports and formal business networks, based on the capability-based perspective and organisational learning literature.

Design/methodology/approach
The authors analyse time-series data about UK SMEs, extracted from the 2015 and 2016 UK Longitudinal Small Business Surveys (LSBS).

Findings
The authors failed to find any direct effects of PEC and OIC on product innovation outcomes. However, the authors discovered that OIC supports the generation of process innovation outputs more strongly than PEC. Additionally, exports and formal business networks provide SMEs with different learning opportunities. The authors find limited support that exports amplify the beneficial effect of PEC on product innovation outcomes more than formal business networks. On the other hand, formal business networks strengthen the effect of PEC on process innovation outcomes more than exports. As a result, exports reduce the beneficial effect of OIC on product innovation outcomes more than formal business networks. However, formal business networks weaken the beneficial effect of OIC more than exports.

Originality/value
The authors distinguish between two types of organisational capabilities – PEC and OIC – and examine their impact on SMEs in achieving innovation outcomes. The authors also identify SMEs’ involvement in exports and formal business networks as the important boundary conditions for such effects. xD; xA; xD; xA;
Original languageEnglish
Pages (from-to)1022-1060
Number of pages39
JournalInternational Journal of Operations & Production Management
Volume42
Issue number7
Early online date21 Jun 2022
DOIs
Publication statusPublished - 28 Jun 2022

Bibliographical note

Publisher Copyright:
© 2022, Emerald Publishing Limited.

Keywords

  • Exports
  • Formal business networks
  • Organisational capability
  • Organisational learning
  • SME

ASJC Scopus subject areas

  • General Decision Sciences
  • Strategy and Management
  • Management of Technology and Innovation

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