Hybrid strategy, sustainability orientation, and SME performance: the mediating role of product, process, and social innovation

Women's SMEs contribute to the economy, so attention to business performance is important to improve. Efforts to improve the performance of women SMEs require knowledge of the factors that play an important role in SME performance. This research was conducted on women SMEs in Belitung district by examining several factors that affect performance, namely social networks, family support and product innovation. In previous studies, there were differences in the results of several researchers on the influence of determining factors on performance, so this research will fill this gap as well as test the role of product innovation as a mediator of social networks and family support on business performance. By using the cross-section method, 113 women’s SMEs were obtained who have been running a business for a minimum of 1.5 years and are engaged in the processing industry. Data analysis with Partial Least Square-Structural Equation Modeling (PLS-SEM), SmartPLS v.4.0 was used in data processing. The path coefficient results show that social network variables and product innovation have a positive and significations effect, while family support has no significations effect on SME performance. Product innovation partially mediates social networks towards women’s SMEs performance, while product innovation fully mediates family support on women’s SMEs performance. Family support has no significations effect towards women’s SMEs performance, this illustrates that women’s SMEs lack family support in their business activities.

SMEs in Bangladesh are facing limited access to finance and a lack of innovative, entrepreneurial, and marketing skills. They have underdeveloped marketing and sales channels due to financial constraints. Entrepreneurial Marketing (EM), positioned at the intersection of entrepreneurship and marketing, offers a promising solution to these resource-constrained SMEs. While successful EM practices have been documented primarily in developed country contexts, there remains a significant gap in understanding its impact on SMEs in emerging economies like Bangladesh. Furthermore, the role of multiple innovation capabilities in mediating EM’s effects on SME performance has yet to be explored in this context. This research addresses these gaps by investigating the synergistic effects of EM’s seven-dimensional framework on the performance of Bangladeshi SMEs, with process and product innovation serving as mediators. The conceptual framework of the study, supported by the Dynamic Capabilities Theory, was analysed using data collected from a quantitative survey of 355 SME owners or managers selected with the convenience sampling technique. PLS-SEM analysis reveal that EM positively influences process and product innovation. Consequently, process and product innovation significantly enhance SME performance. Additionally, the study highlights the critical mediating roles of these innovation categories in the relationship between EM and SME performance.

Purpose This paper aims to examine the interrelation between two innovating strategies (product and process) on total factor productivity (TFP) growth and the dynamic linkages between these strategies, for Colombia. The authors first explore whether ex ante more productive firms are those that introduce innovations (the self-selection hypothesis) and if the introduction of innovations boosts TFP growth (the returns-to-innovation hypothesis). Second, the authors study the firm’s joint dynamic decision to implement process and/or product innovations. The authors use Colombian manufacturing data from the Annual Manufacturing and the Technological Development and Innovation Surveys. Design/methodology/approach This study uses a four-stage procedure. First, the authors estimate TFP using a modified version of Olley and Pakes (1996) and Levinsohn and Petrin (2003), proposed by De Loecker (2010), that implements an endogenous Markov process where past firm innovations are endogenized. This TFP would be estimated by GMM, Wooldridge (2009). Second, the authors use multivariate discrete choice models to test the self-selection hypothesis. Third, the authors explore, using multi-value treatment evaluation techniques, the life span of the impact of innovations on productivity growth (returns to innovation hypothesis). Fourth, the authors analyse the joint likelihood of implementing process and product innovations using dynamic panel data bivariate probit models. Findings The investigation reveals that the self-selection effect is notably more pronounced in the adoption of process innovations only, as opposed to the adoption of product innovations only or the simultaneous adoption of both process and product innovations. Moreover, our results uncover distinct temporal patterns concerning innovation returns. Specifically, process innovations yield immediate benefits, whereas implementing both product innovations only and jointly process and product innovations exhibit significant, albeit delayed, advantages. Finally, the analysis confirms the existence of dynamic interconnections between the adoption of process and product innovations. Originality/value The contribution of this work to the literature is manifold. First, the authors thoroughly investigate the relationship between the implementation of process and product innovations and productivity for Colombian manufacturing explicitly recognising that firms’ decisions of adopting product and process innovations are very likely interrelated. Therefore, the authors start exploring the self-selection and the returns to innovation hypotheses accounting for the fact that firms might implement process innovations only, product innovations only and both process and product innovations. In the analysis of the returns of innovation, the fact that firms may choose among a menu of three innovation strategies implies the use of evaluation methods for multi-value treatments. Second, the authors study the dynamic inter-linkages between the decisions to implement process and/or product innovations, that remains under studied, at least for emerging economies. Third, the estimation of TFP is performed using an endogenous Markov process, where past firms’ innovations are endogenized.

PurposeThe purpose of this paper is to investigate the effects of knowledge management (KM) on product and process innovations, as well as on operational performance (OP). In addition, the effects of product and process innovations on OP, as well as their mediating effects on the relationship between KM and OP, are also investigated.Design/methodology/approachA questionnaire-based survey was designed and used to collect data from 207 manufacturing companies operating in the Jordanian capital Amman. To assess construct validity, exploratory and confirmatory factor analyses were conducted. To test research hypotheses, the bootstrap re-sampling method was applied using Hayes’s SPSS multiple-mediator PROCESS macro.FindingsThe results indicate that KM has significant positive effects on product and process innovations, and OP. Process innovation was found to have a significant positive effect on OP, while product innovation was not. Furthermore, only process innovation was found to significantly mediate the KM-OP relationship.Practical implicationsThe findings of this study provide useful insights about the role of KM in facilitating and enhancing product and process innovations, as well as OP in the surveyed manufacturing companies. An important implication concerns the roles of product and process innovations. Manufacturing companies seeking improvements in their OP are recommended to focus on process innovation rather than product innovation. While product innovation may affect other aspects of performance, such as market and financial ones, it was not found to significantly affect OP. Process innovation can also leverage KM’s contribution to manufacturing companies’ OP.Originality/valueThis is a pioneering study in that it developed an integrated model that depicts the interrelationships among KM, product innovation and process innovation and OP, in a developing country context.

PurposeThis article focusses on the hybrid strategy, a simultaneous combination of cost leadership and differentiation strategy. The study aims to examine the impact of hybrid strategy on firm performance through its anticipated positive effects on process and product innovation. In addition, we study the moderating role of adaptive capacity in the direct relationships of hybrid strategy with process and product innovation.Design/methodology/approachStructural equation modelling was used to analyse 1,842 Spanish firms with fewer than 250 employees. We randomly selected small and medium-sized enterprises (SMEs) operating in Spain from the Spanish Central Business Directory (2021) database. The overall sample design was based on stratified sampling.FindingsWe found that hybrid strategy is positively related to firm performance and to process and product innovation. Additionally, in firms implementing hybrid strategies, process innovation fostered firm performance. Finally, adaptive capacity strengthened the relationships of hybrid strategy with process and product innovation. This sheds light on how and when hybrid strategy is most effective in fostering SME performance.Practical implicationsWe highlight that SMEs need to establish strategies that use diverse resources and capabilities and not just generate competitive advantage using one strategy (cost leadership or differentiation strategy). This requires an agile and flexible systems and structures.Originality/valueOur research provides novel results by proposing the adoption of hybrid strategies instead of pure strategies (cost leadership and differentiation strategy) as a way for SMEs to survive during crises. Unlike “stuck in the middle” strategies, our study demonstrates the importance of hybrid strategies in a comprehensive model that links them to innovation and firm performance, with adaptive capacity being a determining factor.

The ability of self-reconstruction is essential to the survival of social organizations. To meet the social challenges, these organizations must enhance their creative and innovative processes. Although an extensive literature describes the impact of social capital on innovations, research on how social and organizational innovations affect organizational performance and social capital is very slim. This paper makes an addition to the literature by investigating the impact of organizational and social innovations in explaining the relationship of social capital and organizational performance. Confirmatory factor analysis, exploratory factor analysis, and structural equation modelling are used on the data gained from social organizations in China. It is found that social and organizational innovations affect the organizational performance in positive way while social capital has a vital role in this relationship by improving mutual cooperation, interaction and trust. The mediating role of social and organizational innovations in the relationship of social capital and organizational performance is formalized through structural equation modeling. The empirical findings reveal that organizational and social innovations have mediating role in relationship of organizational performance and social capital. The empirical results do not support the direct relationship between organizational performance and social capital or between innovations and organizational performance. It is also found that social and organizational innovations are necessary to improve the relationship of organizational performance and social capital.

Purpose – What are the effects of implementing various types of innovation, including product, process, and technological innovations, on the performance of SMEs in the manufacturing sector? This is a question that preoccupies us a lot. This study seeks to examine the individual and integrated effects of these innovations. Indeed, we examine the impact of three categories of innovation – product, process, and technological innovation – on the performance of SMEs in the manufacturing industry. Research methodology – We used a quantitative approach to execute this research, selecting SMEs at random using self-administered questionnaires. The data collected from 153 manufacturing SMEs was analyzed using hierarchical linear regression to investigate, evaluate, and refine the relation among product, process, and technological innovation and SME performance. Findings – This study’s findings reveal a clear and direct relationship between these three forms of innovation and SMEs’ performance. This study also provides empirical evidence that various forms of innovation, either examined individually or as integrated, exert a positive effect on the performance of SMEs in the manufacturing industry. Limitations – This study focuses on Kosovo-based SMEs, with the assumption of an upright connection between variables. Future studies can examine the existence of reverse causality in a variety of regional, cultural, and industrial settings. Originality/Value – This study significantly advances existing knowledge by providing useful insights into the complex interplay among product, process, and technological innovation (examined from both individual and integrated perspectives) as well as the performance of SMEs in the manufacturing industry.

The role of knowledge management (KM) in the existence of Small Medium Enterprises (SME’s) has been an important aspect of entrepreneurship. However, to perform an SME may not merely rely on its knowledge but also on other aspects such as market orientation and product innovation. This study aims to contribute to the entrepreneurship literature in the context of emerging economies. This study can be classified as quantitative research by nature as the use of a survey to gather respondent data. About 211 samples of SMEs of the furniture cluster in East Java were obtained in this study. Thus, understanding that the focus on market orientation and innovation in SMEs has not fruitfully been exposed and explored enough in the context of emerging economies such as Indonesia. The result of this study indicated that KM is not a direct predictor of SME performance. This is an indication that the supremacy creation of SME performance could not depend heavily on KM but rather, other driving forces such as market orientation (MO) and product innovation (INNOV) are much more powerful drivers in crafting SME performances.

In a progressively challenging environment, innovation is extensively considered as the most vital source of competitiveness, because it creates a constant improvement that assists the organizations to endure. Innovation also leads to product and process enhancements thus enhancing efficiency. Innovation is often a necessity for organizations with strictly limited funds and resources yet are trying to remain profitable and competitive. Therefore, this study sought to establish the influence innovation strategies on performance of small and medium enterprises in Nairobi City County. The specific objectives were to determine the effect of product innovation, service innovation, marketing innovation and process innovation on organizational performance in SMEs. The study used a descriptive research design. A total of 398 Small and Medium Enterprises was used where the enterprise owners was used as the respondents. Primary data was collected through the administration of the questionnaires. Descriptive and inferential statistics analysis was conducted. A regression model was used to determine the effect of innovation strategies on performance of Small and Medium Enterprises in Nairobi County. The regression of coefficients results show that product innovation and organizational performance of SMEs is positively and significantly related. The results further indicated that service innovation and organizational performance of SMEs is positively and significantly related. The results further indicated that marketing innovation and organizational performance of SMEs is positively and significantly related. Lastly, results showed that process innovation and organizational performance of SMEs is positively and significantly related. The study concluded that innovation strategies positively influences performance of SMEs in Kenya. The study recommends that the SMEs should invest in innovative technology to survive intense competition currently experienced in the SMEs. Further, the study recommends that the SMEs should continuously produce new products and re-engineer existing products to prolong the product life cycle. Further, the study recommends that the SMEs should design an innovative marketing strategy that makes customers feel a part of the enterprise through social responsibility and promotions. The study recommended that the SMEs should invest in benchmarking with the technology in the industry. Keywords: Product Innovation, Service Innovation, Marketing Innovation, Process Innovation & Small and Medium Enterprises.

In the era of globalization, companies face various challenges and risks, including competition. To survive in this constantly changing business environment, it is important to identify and address both opportunities and threats. The aim of this study is to investigate the impact of sustainable entrepreneurial orientation on business performance in SMEs, with competitive advantage acting as a mediating variable. The research surveyed 325 SME entrepreneurs in Jakarta City. The data was analyzed using the Structural Equation Modeling with Partial Least Square (SEM PLS) approach. The findings demonstrate that sustainable entrepreneurial orientation has a significant effect on business performance in SMEs. In SMEs, there is a significant relationship between sustainable entrepreneurial orientation and competitive advantage, as well as between competitive advantage and business performance. The relationship between sustainable orientation and business performance is mediated by competitive advantage.

Why does the progress of civilisation require social innovations?

Technological Innovation has become an indispensable tool for organizations to gain competitive advantage, increase performance, venture into new markets and survive in such a competitive atmosphere. A plethora of research has found that technological innovation is a critical factor that improves organizational performance. The study focused on investigating the effects of technological innovation on the performance of SMEs in the manufacturing industry. The study objectives were to establish the factors that influence technological innovativeness among manufacturing SMEs in Zimbabwe, determine the effect of product innovation on the performance of manufacturing SMEs, to ascertain the effect of process innovation on the performance of manufacturing SMEs in Zimbabwe and to establish the challenges faced by SMEs in the manufacturing sector adopting technological innovation in Zimbabwe. A quantitative research approach was adopted. The researcher used simple random sampling in this study and every member in the sample size has an equal opportunity to be selected. A total sample size of 66 respondents was selected randomly. A structured questionnaire was distributed to respondents and the response rate was approximately 76%. Data was processed on excel which was later uploaded on the SPSS and SmartPLS version 3.2.1 softwares. Cronbach Alpha of 0.886 was obtained and this indicated the strong reliability and validity of the study results. Composite and Average variance extracted was also used to assessed the validity of the study. It was discovered that experienced human capital, leadership, access to funding, competition, and organisation mission and culture are important in influencing innovation in SMEs. In addition, the study revealed that product and process innovation had an impact on manufacturing SMEs’ organizational performance that was statistically significant. It emerged that product and process innovation improves a number of financial performance indicators for a business, including sales growth, market expansion, rising customer happiness, and rising profit margins. Therefore, in line with the findings, the study recommends that the government must develop and implement a wide range of innovation policies that encourage best practices and support company growth and should support the creation and ongoing operation of innovative businesses through partnerships. Future studies should expand the study’s scope and sample size and other factors related to product and process innovations. In addition, future research has to take into account the creation of national and regional government policies that encourage innovation among SMEs.

Majority of studies have been geared towards examining the critical role of business strategy, innovation and SMEs performance in Malaysia. Current studies, however, reported contradictory results on business strategy and innovation on financial performance in different contexts. Therefore, this study claims that there should be a moderating variable is required to promote the relationship between business strategy, innovation and organizational performance. This study, therefore, has incorporated the dynamic capabilities as a moderator to improve the relationship between business strategy (differentiation strategy and cost-leadership strategy), innovation (product innovation and process innovation) and financial performance. The study aims to describe the relationship of cost-leadership strategy, differentiation strategy, product innovation and process innovation on the financial performance under the moderating role of dynamic capabilities. To establish the proposed conceptual framework, two theories were introduced: resource-based view (RBV) and dynamic capabilities (DC). The recent literature was used to obtain information on the factors that enabled the present study to establish a conceptual framework and eight propositions formulated. The moderating effect of dynamic capabilities on business strategy (cost-leadership strategy and differentiation strategy) and innovation (product innovation and process innovation) are the main theoretical contribution. Furthermore, limitations and recommendations for future research presented.

Relevance of the research topic. Social innovations are an effective tool for the introduction of social values that provide a new format of social interaction of social actors of sustainable development. Innovations are studied in various spheres of social practice and are understood as socio-cultural phenomena that come from the economic and technological plane. Problem statement. Despite some developments in the study of social innovation, there is a need to move to a new theoretical understanding of the phenomenon of "social innovation", which arises in response to understanding the role of innovation in the model of interaction of self-government and self-organization, as a tool for prompt resolution and smoothing of the consequences of modern socio-economic problems. Analysis of recent research and publications. The relationship of the phenomenon of innovation with the economic development of society, identified by N. D. Kondratiev and J. A. Schumpeter, encouraged the study of innovation as a complex process structured from the stage of basic research to practical application. Further understanding of the concept of "innovation" was proposed by S. Kuznets, who showed that innovation in addition to the technological aspect, have a social - new technologies cause social change (institutional, ideological, etc.). Modern forms of social innovation in the context of sustainable development strategy was studied by D. Antonyuk, who cites the results of their application in the leading countries of the world in order to ensure qualitative change in society. V. Geets, exploring the role of socialization and social innovation in the interaction of business and the state, focused on ensuring social interaction at the macro level by ensuring cooperation in uniting people in a variety of groups, communities to perform actions conditioned by life. T. Kuz emphasizes the establishment of partnerships through social innovations, constructive dialogue between government, business, self-government and self-organization of the population in order to increase the effectiveness of their cooperation. Selection of unexplored parts of the general problem. To date, there is no single approach in the scientific community to the definition of the term "social innovation", which covers a significant part of society. The role of social innovations in the model of effective interaction of self-government bodies and self-organization of the population, as well as the forms of their manifestation are insufficiently covered. Problem statement, research goals. The above circumstances determine the feasibility of determining the role and effective forms of social innovation in the interaction and cooperation of stakeholders for the development of communities and territories. Method and methodology of research. The set of methods of empirical and theoretical research (analysis and synthesis, abstract-logical, generalization and system analysis) in the process of research was used. Presentation of the main material (results of work). A retrospective analysis of the formation of the phenomenon of social innovation, the author's definition of the term "social innovation", the main tools for the development of social innovation and current areas of their use. It is noted that social innovations as new ways of human interaction in the form of supporting positive initiatives, personal projects, training and skills development of volunteers intensify the development of local communities by establishing a wide network of horizontal and vertical relationships between social attractors. Field of application of results. The obtained results can be used in the self-government bodies of territorial communities in order to increase the effectiveness of stakeholder interaction in the process of achieving sustainable development goals. Conclusions. Today in Ukraine the introduction of social innovations in management processes is in its infancy, there is virtually no experience of self-organized structures and their interaction with self-government bodies, which requires improvement of volunteer management, dissemination and development of fundraising and crowdfunding, creation of social clusters for human innovation, which is focused on sustainable development.

Competition in the current global era requires SMEs to improve their innovation capability in order to create a competitive advantage. Understanding customer knowledge management and dynamic marketing capability is essential in supporting new product innovation and SMEs' performance. This study examines the effect of customer knowledge management and marketing dynamic capability on SMEs innovation and performance. The samples in this study were 260 SME entrepreneurs. Data collection was carried out using questionnaires and interviews. Based on the results of data analysis using partial least squares, customer knowledge management does not affect innovation capability. Marketing dynamic capability has a significant effect on SMEs innovation and performance. Customer knowledge management has a significant effect on SMEs marketing dynamic capability and performance. Innovation capability has a significant effect on SMEs performance.