Abstract
It is widely accepted that network capability (NC) and learning orientation (LO) directly enhance small and medium-sized enterprises' (SMEs) performance. Yet relatively little attention has been paid to the study of the complementary effects of internal and external capabilities on innovation and firm performance. Drawing on the dynamic capabilities theory, this study investigates the complementary effect of NC and LO on SME performance. Moreover, this research examines how product and process innovation capability mediates the complementary effect of NC and LO on SME performance. The hypotheses were tested on 309 high-technology manufacturing SMEs in Türkiye. Empirical results revealed that NC and LO jointly influence product innovation capability. The results also suggested that only process innovation capability performs a mediating role in the complementary effect of NC and LO on firm performance. This study contributes to the literature by providing a comprehensive analysis of the relationships between NC, LO, innovation capabilities, and SME performance.
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