Network embeddedness and innovation performance: a mediation moderation analysis using PLS-SEM
Business Process Management Journal
ISSN: 1463-7154
Article publication date: 26 May 2021
Issue publication date: 10 August 2021
Abstract
Purpose
This study examines the impact of network embeddedness (NE) on innovation performance in small- and medium-sized enterprises (SMEs), and analyses absorptive capacity as mediator and openness as moderator.
Design/methodology/approach
Data were collected from 209 employees of SMEs using a convenient sampling technique. Partial least squares structural equation modeling in SmartPLS was used to analyze the various constructs.
Findings
The results exhibit a positive and significant relationship in NE and absorptive capacity. Also, this study found a positive and significant relationship in absorptive capacity and innovation performance. Moreover, absorptive capacity has a positive and significant mediation role in the relationship between NE and innovation performance. Also, openness positively moderated the relationship of NE and absorptive capacity.
Practical implications
SMEs should try to implement the functions of NE, such as interaction with other firms in higher frequency, developing trust among all parties, clear alliance among the partners to enhance innovation performance. Similarly, SMEs should focus on absorptive capacity and openness to enrich innovation performance.
Originality/value
This study adds in the current literature of the chosen constructs and empirically contributes the effects in the manufacturing industry of Jiangsu Province, China.
Keywords
Acknowledgements
Funding: National Natural Science Foundation of China: Research on Low Carbonization Transition Path of High Carbon Industry in China Based on Knowledge Spillover of Global Value Chain (71774071). Senior talent project of Jiangsu University (08JDG055): Disruptive innovation and construction of SMEs dynamic competitive advantage.
Citation
Tian, H., Iqbal, S., Anwar, F., Akhtar, S., Khan, M.A.S. and Wang, W. (2021), "Network embeddedness and innovation performance: a mediation moderation analysis using PLS-SEM", Business Process Management Journal, Vol. 27 No. 5, pp. 1590-1609. https://doi.org/10.1108/BPMJ-08-2020-0377
Publisher
:Emerald Publishing Limited
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