Collaboration Networks and Innovation Performance of SMEs: The Moderating Role of Intellectual Property Protection

Abstract

Innovation performance of small and medium-sized enterprises (SMEs) is very important for China's economic development. However, in China, compared with large firms, SMEs' innovation capability and innovation performance are generally low. Constructing collaboration networks is an effective way for SMEs to improve their innovation performance. This study classified collaboration networks into formal collaboration networks and informal collaboration networks, and tried to examine their effects on innovation performance of SMEs. Besides, this study also investigated how these relationships can be moderated by intellectual property protection. We tested these hypotheses using hierarchical regression analysis on a sample of 174 manufacturing SMEs operating in China. The findings from the analysis showed that both formal and informal collaboration networks positively affect innovation performance of SMEs, and informal collaboration networks offer greater benefits than formal collaboration networks. Furthermore, the moderating effects of intellectual property protection on the relationships between formal and informal collaboration networks and SMEs' innovation performance are supported.