The Influence of Network Embeddedness on Innovation Performance of MSMEs. The Mediating Role of Ambidextrous Organizational Learning

doi:10.7176/ejbm/13-23-06

Abstract

Highlights

Based on resource-based view (RBV) and organizational learning theories, the study has built theoretical conceptual model of multiple networks embedding influencing enterprises’ l innovation performance from the perspective of organizational learning
Echols and Tsai (2005) define Network embeddedness as a concept regarding “the structure of a firm’s relationship with other firms—the extent to which a firm is connected to other firms” and it was classified into three dimensions by Inkpen and Tsang (2005), namely, cognitive, structural and relational embeddedness
Relational embeddedness founded on trust is explained as the degree of quality and cohesive social interaction among network members acting as a community of organizations (Lin, Fang et al 2009, Wang and Chen 2012)

Summary

Introduction

Based on resource-based view (RBV) and organizational learning theories, the study has built theoretical conceptual model of multiple networks embedding influencing enterprises’ l innovation performance from the perspective of organizational learning. The work discussed the internal mechanism of ambidextrous organizational learning activities affected by embedded relationship, embedded structure and embedded resource influencing technological innovation performance. Through obtaining data form 305 respondents in management of MSMEs in Sierra Leone, the study systematically validated the conceptual model with the structural equation model It showed that embedded relationship, embedded structure and embedded resource in enterprise organization network can effectively improve the enterprise’s organizational learning capability, bringing significant promotion in innovation performance. The promotion effect of embedded structure to enterprises’ technological innovation majorly relies on the fully-mediated The macroscopical trend of modern enterprise networking development and the innovation performance model of Micro, Small and Medium Enterprises (MSME’s) has gradually developed from the single model by taking a new paradigm of network embeddedness and regulated by ambidextrous organizational learning. The rest of the study is arranged as literature review, methodology, results and conclusion

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Discussion

Conclusion