Can hybrid strategy improve SME performance? The role of innovation and adaptive capacity

Santiago Gutiérrez-Broncano (Faculty of Social Sciences and Information Technologies, University of Castilla-La Mancha, Talavera de la Reina, Spain)
Jorge Linuesa-Langreo (Department of Business Administration, Faculty of Social Sciences, University of Castilla-La Mancha, Cuenca, Spain)
Mercedes Rubio-Andrés (Department of Business Organisation, Faculty of Commerce and Tourism, Complutense University of Madrid, Madrid, Spain)
Miguel Ángel Sastre-Castillo (Department of Business Organisation, Faculty of Commerce and Tourism, Complutense University of Madrid, Madrid, Spain)

European Journal of Innovation Management

ISSN: 1460-1060

Article publication date: 14 February 2024




This 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.


Structural 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.


We 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 implications

We 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.


Our 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.



Gutiérrez-Broncano, S., Linuesa-Langreo, J., Rubio-Andrés, M. and Sastre-Castillo, M.Á. (2024), "Can hybrid strategy improve SME performance? The role of innovation and adaptive capacity", European Journal of Innovation Management, Vol. 27 No. 9, pp. 173-197.



Emerald Publishing Limited

Copyright © 2024, Santiago Gutiérrez-Broncano, Jorge Linuesa-Langreo, Mercedes Rubio-Andrés and Miguel Ángel Sastre-Castillo


Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at

1. Introduction

Recent global events, such as the global health pandemic alert and the new war conflicts, have led to a decline in global wealth (He and Harris, 2020) and have resulted in “the new normal” (Clauβ et al., 2022). This new context is characterised by hypercompetition, high demand instability, disruptive changes in industry structure, unpredictable customer behaviour and instability of economic, social and technological factors (Lapersonne, 2013), with traditional competitive strategies proving ineffective (Anwar and Hasnu, 2017).

The literature highlights that a pure differentiation or cost leadership strategy can cause firms to stagnate, especially when faced with new challenges, thereby encouraging the emergence of new types of competitive strategies that are better adapted to the new normal. Historically, during global crises, firms have tended to combine pure strategies for higher profits and reduced risk because hybrid competitive strategies alleviate pressures from the external environment (Alnoor et al., 2023). Many large companies (e.g. Ikea, Tesco, Honda, and Mercadona) are simultaneously applying such combined strategies and finding success (Baroto et al., 2012; Blanco and Gutiérrez, 2008). Such hybrid strategy enables them to innovate in response to the turbulent environment, achieve competitive advantage, and obtain superior performance (Fatonah and Haryantoa, 2022). Innovation is strategic in firms that build competitive advantages (Hutomo and Pudjiarti, 2021). However, because innovation in small and medium-sized enterprises (SMEs) is lower due to their lower resource capacity (AlQershi et al., 2020; Varis and Littunen, 2010), they are more constrained than large firms in achieving superior performance (Lin et al., 2014; Zamani, 2022).

Hybrid strategies are difficult to imitate because they reduce costs and increase quality, thereby enabling the development of unique capabilities that outperform generic ones (Anwar and Hasnu, 2017). In addition, a hybrid strategy gives rise to multiple sources of competitive advantage such as economies of scale, brand loyalty, and improved product quality (Baroto et al., 2012). Therefore, hybrid strategies have been recognised as a particularly interesting avenue of research (Gabrielsson et al., 2016). However, studies have mainly focussed on large companies such as United States multinationals (Gabrielsson et al., 2016) and large European companies (Acquaah and Yasai-Ardekani, 2008; Claver-Cortes et al., 2012) or emerging markets such as China (Li et al., 2009; Li and Li, 2008), with few studies focussing on SMEs (Sofía and Agustine, 2019). Therefore, there is currently a demand for studies that analyse the effect of a hybrid strategy in such companies and incorporate new influential variables relevant to the implementation of the hybrid strategy (Alnoor et al., 2023).

Based on these premises, the first objective of this study is to analyse the impact of implementing a hybrid strategy on SME firm performance. With this aim, our work helps to fill the gap in the literature on the implementation of hybrid strategies and their impact on firm performance, while simultaneously providing results specific to SMEs, regarding which research is scarce. The second objective of the research is to examine the mediating role of product and process innovation in the relationship between hybrid strategy and firm performance. In this way, we gain a better understanding of the functioning of hybrid strategies and increase existing knowledge on implementing hybrid strategies in SMEs. Finally, the third objective is to examine adaptive capacity as a potential moderator in the relationships of hybrid strategy with product and process innovation, as this in an organisational process that depends not only on business strategy but also on the capabilities of the firm (cf. Akgün et al., 2012). Thus, although we expect hybrid strategy have a generally positive impact on fostering higher levels of product and process innovation, a firm’s adaptive capacity may be a boundary condition. We argue that the presence of higher levels of adaptive capacity in SMEs can strengthen the relationships of hybrid strategy with product and process innovation. This will help advance the literature by incorporating new influential moderating variables into the hybrid strategy in SMEs. Therefore, SME managers will benefit from this research as it will help them make strategic decisions that enable them to compete in turbulent environments.

In response to these objectives, this study makes several contributions to the literature on SMEs, given their importance as drivers of economic development in the current environment (Kharub et al., 2022; Rubio-Andrés et al., 2022a). First, we help alleviate the dearth of literature on hybrid strategies and their impact on value-generating variables (i.e. innovation and firm performance; Alnoor et al., 2023). Specifically, our study reflects on and develops a unified model that has not been previously analysed in the literature and integrates several constructs such as hybrid strategies, innovation, adaptive capacity, and firm performance. Second, it analyses the mechanisms (product and process innovation) through which hybrid strategies can achieve firm performance. Third, we examine the active role that adaptive capacity can play in strengthening or minimising the positive influence of hybrid strategies on (product and process) innovation. Finally, through a survey of 1,842 CEOs of small and medium-sized Spanish firms in the leading sectors (industry, construction, commerce, and services), we contribute to the literature by a developing quantitative study whose empirical findings shed light on the disparate results of previous studies.

The remainder of this paper is organised as follows. The second section reviews the extant literature on the theoretical background of our research variables, and hypotheses are developed in the third section. The fourth section describes the research method, including the sample, procedures, measures, and data analyses. In the fifth section, we present the main results. Finally, the sixth and seventh sections present the discussion and conclusions, incorporating implications for theory and practice, along with the limitations and future research directions.

2. Theoretical background

2.1 Hybrid strategy

Hybrid strategy emerged as an evolution of Porter’s generic strategic framework (Lapersone et al., 2015) as a source of gaining advantage over rival firms, enabling them to compete in turbulent environments (Alnoor et al., 2023). According to Anwar et al. (2021), detailed research on hybrid strategy has emerged as a key challenge in competitive strategy research.

Although Porter (1980, 1985) opposes the simultaneous pursuit of low-cost and differentiation strategies, to avoid being “stuck in the middle”, some authors defend the compatibility of this approach and establish the possibility of implementing hybrid, mixed, integrated, or combined strategies (Acquaah and Yasai-Ardekani, 2008; Claver-Cortes et al., 2012; Spanos et al., 2004). Hybrid strategy is an emerging and novel concept that simultaneously emphasises differentiation and cost leadership (Sofia and Augustine, 2019; Spanos et al., 2004).

To understand the concept of hybrid strategy, Pertusa-Ortega et al. (2009) distinguish between taxonomic and dimensional approaches (Miller and Dess, 1993). These premises deviate from Porter’s (1980) thinking, because the author advocates a categorical approach by defining cost leadership and differentiation strategies as two alternative, inconsistent, and incompatible methods to achieve competitive advantage. In fact, several authors (Spanos et al., 2004) argue that generic competitive strategies should not be understood as single strategies but as two dimensions in which each firm must choose the position that best suits it. Although a priori generic strategies require different competences and resources, two arguments in the literature defend the compatibility between cost leadership and differentiation. On the one hand, achieving a strong competitive position with one strategy can improve the position in the other. On the other hand, there are certain business practices that improve both competitive positions, such as quality improvement (Grant, 2002) and digital transformation (Bayo-Moriones and Lera-López, 2007); these help to enhance differentiation by improving responsiveness to market changes and achieve cost reductions as the decision-making process is improved and streamlined (Pertusa-Ortega et al., 2009).

A hybrid strategy is a strategic choice whose long-term implementation in firms requires management effort (Leitner and Güldenberg, 2010). It aims to provide more value to customers by combining low costs and high differentiation rates, and improves the performance of SMEs (Alnoor et al., 2023). The literature on the hybrid strategy of SMEs is summarised in Table 1, where the main articles selected are described considering the variables mentioned.

2.2 Product and process innovation

Innovation is an important strategic tool that enables entrepreneurs to create competitive advantages and market opportunities to achieve higher business growth driven by changes that allow them to differentiate their businesses from competitors (Febrianti and Herbert, 2022). Thus, innovation is essential to improve the performance of SMEs, especially in complex and volatile business environments (Centobelli et al., 2019).

In the organisational context, innovation is primarily classified into two categories: product innovation and process innovation (Bayraktar, 2017; Murat Ar and Baki, 2011). Process innovation improves business efficiency and effectiveness from an internal point of view (Centobelli et al., 2019). According to Das (2018), process innovation involves eliminating non-value-adding activities, reducing costs, and boosting business competitiveness.

Product innovation results in the introduction of new or improved products into the market, which requires the prior identification of new customer needs and the improvement of product quality (Febrianti and Herbert, 2022). Launching innovative products with new or improved features and functions enables firms to create a competitive advantage for market survival (Munck et al., 2020).

Therefore, based on the literature review and the nature of the research, this study selected process innovation and product innovation, as potential predictors contributing to the SME firm performance.

2.3 Adaptive capacity

Adaptive capacity refers to a firm’s ability to identify and capitalise on emerging opportunities in the environment and is critical for its evolution and survival in different industries (Wang and Ahmed, 2007). Tuominen et al. (2004) point out that this capability is essential as a source of innovation and for the successful development and commercialisation of new products. Therefore, we focus on adaptive capacity which refers to a more effective search for information and superior firm flexibility to respond quickly to market changes and to adopt strategic changes according to business priorities (Heubeck and Meckl, 2022; Rodrigo-Alarcón et al., 2018).

Thus, to achieve and maintain a sustainable competitive advantage, it is particularly important for firms to decipher signals from the changing environment, make predictions about volatile consumer preferences and government policies, reconfigure resources and coordinate processes, and respond to environmental changes quickly and flexibly by developing innovations (Chen and Wu, 2011; Pundziene et al., 2022). Biedenbach and Müller (2012) emphasise that adaptive capacity in the early stages of a project has a positive effect on short-term success and firm performance.

2.4 Firm performance

Firm performance has emerged as a key concept in management research and is frequently used as a dependent variable (Taouab and Issor, 2019; Tavoletti et al., 2022). Firm performance is defined as the capability of an organisation to efficiently exploit available resources to make achievements consistent with the objectives of the firm (Peterson et al., 2003). Firm performance refers to a company achieving better results than its competitors (Homburg and Jensen, 2007; Liu and Wang, 2022), considering metrics such as competitiveness, efficiency and effectiveness in management, economics, and marketing (Taouab and Issor, 2019).

3. Hypothesis development

3.1 Hybrid strategy and firm performance

The impact of hybrid strategy on firm performance has also been studied in the literature. Initially, we identified two distinct lines of research. Porter’s proponents found empirical evidence that firms implementing hybrid strategies perform worse than their competitors following a pure cost leadership or differentiation strategy (Aulakh et al., 2000). However, other researchers argue that a combination of differentiation and low cost can lead to higher levels of performance (Pertusa-Ortega et al., 2009; Spanos et al., 2004). However, the first line of research is blurred, as even Porter (1985) acknowledges that firms can simultaneously achieve cost leadership and differentiation advantages under specific conditions: primarily with highly competitive firms in highly changing environments (Gabrielsson et al., 2016).

A recent bibliometric literature review concludes that hybrid strategy is closely related to strategic performance (Alnoor et al., 2023). Several studies have corroborated this finding (Acquaah and Yasai-Ardekani, 2008; Claver-Cortes et al., 2012; Kaliappen et al., 2019; Pertusa-Ortega et al., 2009; Spanos et al., 2004). According to these studies, hybrid strategies increase learning and efficiency in multiple firm areas and require a combination of effectiveness and innovation (Alnoor et al., 2023), thereby allowing firms greater agility and flexibility. In contrast, strategic specialisation can lead firms to run the risk of not considering all their customer needs, making them more easily imitated by competitors and more vulnerable to the challenges posed by a much more dynamic environment (Claver-Cortes et al., 2012).

Considering the above, we formulate the following hypothesis:


There is a positive relationship between hybrid strategy and firm performance.

3.2 Hybrid strategy and innovation

Companies that integrate generic strategies into their business vision can position themselves appropriately, improve their innovation capacity, and learn new skills and technologies (Sofia and Augustine, 2019). The main reason to use hybrid strategy in SMEs is the simultaneous focus on costs and quality. Studies such as those by Espino-Rodriguez and Lai (2014) and Kaya (2015) provide empirical evidence that hybrid strategy has cost efficiency and innovation advantages. Therefore, the right combination of efficiency and innovation is a prerequisite for SMEs to design a hybrid strategy (Rodríguez-Escobar and González-Benito, 2017).

Consequently, the choice of strategy by SMEs impacts the development of their innovations, which is a vital determinant of competitive advantage (Wronka-Pospiech and Fraczkiewicz-Wronka, 2016). Understanding that hybrid strategy refers to how a company creates value vis-à-vis competitors, based on lower costs and higher differentiation (Batista et al., 2016), will directly affect SMEs’ innovation. If SMEs try to gain a competitive advantage through cost leadership, they will focus on reducing internal processes; however, if the strategy pursued is differentiation, they will use an external approach to develop innovation (Suoniemi et al., 2020). In the hybrid strategy, the SME attempts to maximise both competitive advantages to overcome competitors’ attacks; thus, the firm can achieve competitive advantage by providing value to customers based on both product features and low prices (Baroto et al., 2012).

When firms achieve higher performance by implementing their individual strategy, they can use the accumulated gains to focus on the gaps and weaknesses in their strategic operations in the market (Leitner and Güldenberg, 2010), with the aim of consolidating and sustaining their competitive advantage (Agyapong et al., 2016). Innovative strategies must be implemented to achieve this goal. By relying on innovation, firms would be engaging in a hybrid strategy that emerged from the prior success of a pure strategy, that is, from the cost leadership or differentiation. Accordingly, we propose the following hypotheses:


There is a positive relationship between hybrid strategy and product innovation.


There is a positive relationship between hybrid strategy and process innovation.

3.3 Innovation and firm performance

The relationship between innovation and performance has been studied extensively (Jaruzelski et al., 2011; Yeh-Yun Lin and Yi-Ching Chen, 2007). Innovation is a key predictor of future firm performance (Hirshleifer et al., 2013; Sancho-Zamora et al., 2021) and positively and significantly influences the business value of SMEs (Rubio-Andrés et al., 2022b; Wang et al., 2023).

According to the OECD (2005), innovation can come from several sources, such as the introduction of products, incorporation of new processes, use of other marketing or organisational methods, and relationships with the outside world, whether new or significantly improved. This typology allows us to study the relationship between a particular type of innovation (product or process) and the extent of its performance.

However, studies that exclusively use product innovation to analyse the impact of innovation on firm performance are limited. The most outstanding amongst these is the study by Ramadini et al. (2019), which determined the positive impact of product innovation on firm performance and identified a significant effect of firm size as a control variable. Agustia et al. (2022) provide evidence that firms that create product innovations improve their performance. Several authors have come to the same conclusion and point to the performance variables used in our study, finding, for example, a positive relationship between product innovation and sales growth (Piening and Salge, 2015). This may be because when firms choose to allocate resources to product innovation, they achieve greater leverage in terms of competitiveness and performance. Continuous product innovation increases the firm’s ability to satisfy consumer needs, thus sustaining their loyalty (Tung, 2012) and achieving sales that are transformed into revenue. Considering these premises, we formulated the following hypothesis:


There is a positive relationship between product innovation and firm performance.

Although process innovation is a growth strategy for SMEs and a source of competitive advantage, it is under-researched (Hervás-Oliver et al., 2014; Ramos-González et al., 2022). Process innovation has sometimes been coupled with product innovation, although, alone and independently, it can be studied for its impact on efficiency improvement (Reichstein and Salter, 2006). However, for some authors, process innovation most often comes from the direct incorporation of technology and sometimes from investment in R&D (Rouvinen, 2002). Barney (1991) links process innovation to the resource-based view because of its internal character and relationship with performance achievement ensuing from good resource management and improvements in organisational routines. Traditionally, the impact of process innovation has been measured using performance variables, such as sales achieved and return on investment (Ramadani et al., 2019), as proposed in our study. Nonetheless, Hervás-Oliver et al. (2014) prefer to replace such variables with the performance of the production process despite it being more complex to measure.

According to Suwignjo et al. (2022), the main objective of process innovation is to achieve greater process effectiveness by reducing costs and improving productivity and competitiveness; subsequently, there is a positive effect on performance. Occasionally, the source of cost reduction is the achievement of economies of scale (Qin, 2007) due to the introduction of new production methods and technology (Wang and Ahmed, 2007). Furthermore, Hilman and Kaliappen (2014) empirically demonstrate that process innovation is positively associated with organisational performance. Considering these premises, we propose the following hypothesis:


There is a positive relationship between process innovation and firm performance.

3.4 The mediation of innovation on the relationship between hybrid strategy and firm performance

The arguments above suggest that firms that develop a hybrid strategy can increase their likelihood of higher firm performance by improving their processes and product innovation. By establishing a hybrid strategy, firms improve their ability to adapt to environmental changes (Sofia and Augustine, 2019), which naturally moves them to develop product and process innovation (Suoniemi et al., 2020). Innovation (in processes and products) is a resource that a company can utilise to grow, develop, and successfully adapt to market changes (Jaruzelski et al., 2011), all of which are essential elements for improving firm performance (Rubio-Andrés et al., 2022b). Thus, we argue that in SMEs that develop hybrid strategies, process and product innovation mediate the relationship between hybrid strategies and firm performance. Hence, we propose the following hypotheses:


Product innovation mediates the relationship between hybrid strategy and firm performance in such a way that hybrid strategy will have a positive indirect effect on firm performance through product innovation.


Process innovation mediates the relationship between hybrid strategy and firm performance in such a way that hybrid strategy will have a positive indirect effect on firm performance through process innovation.

3.5 The moderating role of adaptive capacity

Although the above hypotheses indicate that, in most contexts, all the above-described relationships are valid, the intensity of the relationship between hybrid strategy and innovation (process and product) may differ according to the capabilities of the firm (cf., Teece, 2018). Adaptive capacity is defined as a firm’s ability to identify and capitalise on emerging opportunities in the environment and is critical for its evolution and survival (Wang and Ahmed, 2007). Given this, we believe that the relationships considered in the hypotheses may differ depending on a firm’s adaptive capacity (Ali et al., 2022; Oktemgil and Greenley, 1997).

Adaptive capacity is necessary to overcome environmental changes (Teece et al., 1997) as it provides the necessary sensitivity in a firm’s strategy to focus on the development of further innovation (Akgün et al., 2012). Through adaptive capacity, firms can: (1) recognise technical and market opportunities in their environment and decide to explore them, (2) identify new customer needs and seek new products and services to diversify offers or enter new markets, and (3) continuously evaluate competitors’ products to exploit their weaknesses and develop improved products to meet customer needs (Akgün et al., 2012; Rubio-Andrés et al., 2021; Ruiz et al., 2014). Thus, hybrid strategy can be oriented towards readjusting a firm’s internal and external knowledge to respond quickly and appropriately to market changes through the development of processes and product innovation. Therefore, we propose the following hypotheses:


Adaptive capacity will moderate the relationship between hybrid strategy and product innovation, in such a way that hybrid strategy will have a more positive effect on product innovation when the level of adaptive capacity increases.


Adaptive capacity will moderate the relationship between hybrid strategy and process innovation, in such a way that hybrid strategy will have a more positive effect on process innovation when the level of adaptive capacity increases.

Figure 1 shows the conceptual model we intend to test.

4. Method

4.1 Sample and procedure

We randomly selected SMEs operating in Spain from the Spanish Central Business Directory (2021) database. The selection framework was the SABI (Iberian Balance Sheet Analysis System) database accessed through the FAEDPYME (Foundation for Strategic Analysis and Development in SMEs). The sampling was conducted by stratifying the population (stratified sampling). We established the stratification criteria in accordance with the aims of the study and the information available concerning the population structure. Within each stratum, the selection was made using simple random sampling of up to 2,000 questionnaires. Subsequently, incomplete questionnaires were eliminated. A total of 1,842 completed surveys were returned and used for further analysis (response rate: 29.48%, sampling error: 2.9%, for a confidence level of 95% and the least favourable situation of p = q = 0.5).

The largest group of participating firms was from the service sector (34.8%), followed by industry (32.6%), retail (18.9%), and construction (13.7%). Additionally, most firms were small, with 10–49 employees (52.4%), followed by micro-SMEs with 6–9 employees (34.9%), medium-sized SMEs with 50–249 employees (12.1%), and those without employees (0.7%). By company type, 29.5% were non-family SMEs and 70.5% were family SMEs. With regard to the age of the companies, 8.7% had been competing in the market for less than 9 years, 19.5% for 10–19 years, 50.4% for 20–40 years, and 21.4% for more than 40 years. Finally, in terms of CEO education, 54.3% of the CEOs had completed higher education (see Table 2).

As the research design was cross-sectional and involved various self-report measures, common method variance (CMV) and social desirability bias (SDB) were potential concerns, and several recommended procedural remedies were used (cf. Podsakoff et al., 2003, 2012). For example, to reduce SDB, anonymity was guaranteed as the survey asked for vague demographic information. Additionally, to mitigate CMV, (1) the survey included a psychological separation between predictors and criterion variables to make them appear unrelated; (2) the study variables were intermingled with other variables related to entrepreneurial intention, which acted as distractors; and (3) all items were kept simple, specific, and concise. Additionally, findings using the marker test (e.g. Khosravi et al., 2020) showed that our efforts concerning method variance were successful. Specifically, one marker item (i.e. the gender of the CEO) was unrelated to any of the target constructs. The mean correlation between the marker item and each study variable was 0.04, which was below the recommended 0.05 threshold (Rönkkö and Ylitalo, 2011). Moreover, there were no significant changes in the parameter estimates in the model in which the marker was free to relate to the study variables. Thus, common method variance is unlikely to be a concern in our data.

4.2 Measures

When measures are used to examine a latent construct, the researcher can design reflective or formative indicators (MacKenzie et al., 2005). While reflective measurements are highly correlated indicators that may be caused by the latent construct, formative measures involve indicators that determine the construct without necessarily being correlated (Hair et al., 2017). Following the four criteria proposed by MacKenzie et al. (2005) to distinguish between these two types, all the variables in our survey were reflective.

We adapted all the measures linguistically, semantically, and culturally. Mode A composites (linear combinations of reflective indicators) were used for all the major variables (Hair et al., 2017), together with a five-point Likert response format.

Hybrid strategy. This construct was measured through the interaction between two indicators: differentiation strategy, measured through one item capturing the production of the product or provision of the service under quality criteria, and cost leadership strategy, measured through one item capturing the efficiency of internal processes.

Product innovation. We used indicators that assess the degree of importance of product innovations in SMEs, such as product innovation as changes or improvements in existing products or services, substantial improvements in products or services, and launching new products in the market with or without a direct relation to the core product. The indicators used in this construct have been validated by Burdon et al. (2015), Cegarra-Navarro et al. (2016), Oke et al. (2007).

Process innovation. We used three indicators to assess the degree of importance of process innovation in SMEs. Process innovation considers indicators of changes or improvements in the production process, acquisition of new capital goods, and changes in procurement management. The indicators used in this construct have been validated by Lichtenthaler (2017) and Harel et al. (2021).

Firm performance. This was the main endogenous variable; all the latent variables of the model converged on this variable. The indicators to measure this construct were profitability (Delaney and Huselid, 1996; Pinheiro et al., 2021; Richard et al., 2009), business growth (Christensen et al., 2003; Piperopoulos and Scase, 2009; Szczygielski et al., 2017; Vaccaro et al., 2010), and customer satisfaction (Rasoulzadeh et al., 2013; Saeidi et al., 2015; Clark, 2000; Pekovic and Vogt, 2021; Rasoulzadeh et al., 2013; Saeidi et al., 2015; Sridhar and Mehta, 2018).

Adaptive capacity. This variable was measured using an indicator to assess the SME’s adaptability to changes in the market, defined as the firm’s increased understanding of new opportunities in the environment (Eshima and Anderson, 2017; Oktemgil and Greenley, 1997).

Control variables. In our initial analysis, we controlled for firm size (number of employees), sector (service, industry, retail, or construction), and type of company (family or non-family). Our analysis was reported without these controls as they did not affect our findings (cf. Bernerth and Aguinis, 2016).

4.3 Data analysis

To test our hypotheses, we used partial least squares (PLS) with Smart PLS 3.2.7 (Ringle et al., 2015). The PLS is a distribution-free approach that allows for non-interval-scaled data and both reflective and formative measures (Hair et al., 2017). Thus, it was suitable for testing our model, which included different measurement scales (nominal, ordinal, and interval-scaled variables) and approaches (formative and reflective constructs). In addition, like other structural equation modelling techniques, PLS is especially suitable for testing the mediation and moderation hypotheses included in our study (James et al., 2006). Bootstrapping (5,000 resamples) was used to generate standard errors, and t-statistics were used to test the hypotheses (Hair et al., 2017) and whether the indirect effects were significant (an important criterion for establishing mediation).

5. Results

5.1 Evaluation of the measurement model

Item reliability was satisfactory as the values were above the recommended 0.707 threshold (Hair et al., 2017, Table 3). Additionally, the internal consistencies, composite reliability indices, and Cronbach’s alphas all exceeded the 0.70 cut-off (Hair et al., 2017, Table 3). Convergent validity was supported as the average variance extracted (AVE) for the constructs was above 0.50 (Hair et al., 2017, Table 3). Finally, discriminant validity was supported, with the AVE exceeding the square correlations between the composites in all cases (Hair et al., 2017, Table 3). Moreover, heterotrait-monotrait ratio of correlations (HTMT) indices were below 0.85, as recommended (Hair et al., 2018; Henseler et al., 2015, Table 4).

5.2 Evaluation of the structural model

We used two models to test the hypotheses described above. H1 was supported since, in an unmediated model, hybrid strategy was positively associated with firm performance (β = 0.58, p < 0.001; see Figure 2a). As anticipated, hybrid strategy was also positively linked to product innovation (β = 0.13, p < 0.01; see Figure 2b) and process innovation (β = 0.11, p < 0.01; see Figure 2b), supporting H2a and H2b. However, the relationships of product and process innovations to firm performance yielded different results. While product innovation had no significant effect on firm performance (β = −0.03, not significant; see Figure 2b), meaning H3a was rejected, process innovation did have positive effects on firm performance (β = 0.07, p < 0.05; see Figure 2b), leading us to accept H3b. Finally, the mediating effect of product innovation on the positive relationship between hybrid strategy and firm performance was not significant (indirect effect = −0.004, not significant; see Figure 2b), thus invalidating H4a. In contrast, process innovation significantly mediated the relationship between hybrid strategy and firm performance (indirect effect = 0.008, p < 0.05; see Figure 2b), supporting H4b. Although the size of the individual betas was substantial, the mediation linked to process innovation in the relationship between hybrid strategy and firm performance had only a small effect size (f 2 = 0.05; Table 5).

The findings also support H5a and H5b regarding the moderating role of adaptive capacity in the relationships of hybrid strategy with product and process innovation. The results revealed that, after mean-centring the independent variables and the moderator (Aiken et al., 1991), the resulting interaction term was positive and significant in both cases: product innovation (β = 0.14, p < 0.01; Figure 2b) and process innovation (β = 0.19, p < 0.05; Figure 2b). The graph of the high versus low adaptive capacity regression lines (+1 SD and −1 SD; Aiken et al., 1991) showed that, in the case of product innovation, the positive impact of the hybrid strategy was stronger (the slope is more pronounced) in high than in low adaptive capacity conditions (Figure 3). Thus, H5a was confirmed.

Similarly, in the case of process innovation, the graph of the high versus low adaptive capacity regression lines showed that the positive impact of the hybrid strategy was stronger in high adaptive capacity conditions than in low adaptive capacity conditions (Figure 4). H5a can therefore be confirmed.

6. Discussion

Studies over the past decades have not conclusively determined the specific conditions under which it is preferable for a firm to pursue a combined or hybrid competitive strategy, rather than a single (or pure or generic) competitive strategy of differentiation or cost leadership (Gabrielsson et al., 2016). Studies such as those by He and Wong (2004) argue that the skillset needed to achieve the cost leadership strategy differs from that of the differentiation strategy, such that maintaining both skill sets is often not feasible, especially for smaller firms with fewer resources.

However, recent studies show that firms that adopt strategies based solely on cost leadership or differentiation (pure strategies) are not effective in today’s environment, where change is unpredictable, competition is fierce, and decision-making is increasingly complex (Anwar and Hasnu, 2017). Along these lines, Alnoor et al. (2023) emphasise that a pure strategy may mean that companies are unable to compete in the new scenarios resulting from the changes that have occurred in recent years. It is highly likely that these turbulent and uncertain environments, characterised by the unstable economic, social, and political factors (Lapersonne et al., 2015), have been decisive in forcing SMEs to adapt in order to survive. They do so by adopting hybrid strategies that optimise all their available resources and capabilities, thus outperforming generic strategies and obtaining better results than those based solely on differentiation. Therefore, more studies are required to analyse the effects of developing a hybrid strategy (Alnoor et al., 2023). Thus, our study seeks to shed light on the results obtained by SMEs after applying hybrid strategies.

First, our results confirmed the positive relationship between hybrid strategy adoption and business performance (H1), thus differentiating hybrid or combined strategies from the stagnant or “stuck in the middle” strategies described by Porter (1980, 1985). Owing to their small size and high flexibility (Gubitta and Gianecchini, 2002), SMEs can effectively design their competitive strategy to adapt to the changing environment.

Second, our research has shown that SMEs that implement hybrid strategies can improve their product and process innovation (H2a and H2b). These results are in line with recent studies such as Albers and Rundshagen (2020), who established that a hybrid strategy improves innovation and enables better crisis management. In a similar study, Claver-Cortés et al. (2012) report that their empirical results confirm that a hybrid competitive strategy enhances innovation such that the more hybrid the strategy, the more innovative the firm. Similarly, Alnoor et al. (2023) suggest that the use of hybrid strategies in different sectors leads a firm to obtain higher market share, improve quality, increase flexibility, strengthen innovation, improve lead times, and reduce costs.

Third, we examined the relationship between each type of innovation (product and process) and its impact on firm performance. This study found no empirical evidence of a positive relationship between product innovation and company performance (H3a), confirming only a positive relationship between process innovation and performance (H3b). These findings confirm previous empirical studies (i.e. Cheah et al., 2022), which find a positive relationship between process innovation and performance in SMEs. Therefore, our study contributes to the literature by identifying how a particular type of innovation (process innovation in our case) is key to maintaining in SMEs performance. This may be because SMEs managers consider their competitive advantage is, to a greater extent, a result of internal (process) innovation rather than product innovation, since SMEs have fewer resources than large companies to communicate their results (Baumann-Pauly et al., 2013).

Fourth, we analysed the mediating role of both types of innovation in the positive relationship between hybrid strategy and firm performance (H4a and H4b). We confirmed that only process innovation mediates this relationship. Therefore, we advance the notion that a particular type of innovation, process innovation, is key to SMEs sustaining their entrepreneurial businesses (Singh et al., 2022).

Finally, the implementation of a hybrid strategy requires more flexible and organic structures (Claver-Cortes et al., 2012) that allow for high adaptability. This study empirically demonstrated that SMEs with higher adaptive capacity achieve better innovation outcomes from their hybrid strategies than those with lower adaptive capacity (H5a and H5b). Therefore, we confirmed the findings of Oktemgil and Greenley (1997) on how highly adaptive firms perform better than low-adaptive firms despite the impacts of higher costs, because high adaptive capacity involves a market orientation that allows firms to operate in more turbulent external environments.

7. Conclusions

7.1 Theoretical implications

Our findings advance the existing literature in several ways. First, this study expands the current theoretical knowledge on how firm performance is formed from a strategic point of view. In doing so, we developed a unified model that has not been previously analysed. Our model integrates several constructs: hybrid strategy, innovation (processes and products), adaptive capacity, and firm performance. Thus, the study provides a better understanding of what happens in the first stages of the process that leads to improved firm performance. When considering a hybrid strategy, this study helps researchers understand that process innovation plays a specific mediating role between hybrid strategy and firm performance and that higher levels of a company’s adaptative capacity enhances innovation development (in processes and products).

Second, over time, many publications, empirical works, and case studies on Porter’s (1980, 1985) competitive strategies have served to guide many companies to improve their competitive positions in the market. However, this theory perceives competitive strategies as dichotomous and does not focus on their potential to be understood as simultaneous strategies, that is, as combined or hybrid strategies that are of interest in the turbulent environments in which SMEs compete. Thus, SMEs that develop a hybrid strategy can overcome the weaknesses of a pure competitive strategy (cost leadership or differentiation) because they combine the advantages of both strategies (Leitner and Güldenberg, 2010). Hence, achieving a cost-leadership strategy drives SMEs to achieve differentiation strategies, and vice versa. This finding implies that a dual strategy, although derived from highly divergent organisational philosophies, is not prohibitively difficult to implement successfully in SMEs if the company has adequate resources and competencies to do so. However, contrary to our prediction that a hybrid strategy would allow the development of process and product innovation and, in turn, improve firm performance, this is only possible through process innovation. This may be because SME managers consider their competitive advantage to be, to a greater extent, the result of internal (process) innovation rather than product innovation as SMEs have fewer resources than large companies to communicate any product-innovation results (Baumann-Pauly et al., 2013).

Finally, while research on hybrid strategies reveals significant benefits in terms of higher levels of product and process innovation (Kaya, 2015), it has not examined the active role of dynamic capabilities in increasing or minimising the positive influence of hybrid strategies on innovation. Our results show that adaptive capacity moderates the effects of hybrid strategy on product and service innovation. Thus, under conditions of high adaptive capacity, the relationships of hybrid strategy–product innovation and hybrid strategy–process innovation are strengthened, whereas under conditions of low adaptive capacity, these relationships are weakened.

In summary, our study helps advance the knowledge of the application of hybrid strategies in SMEs in the current times of high uncertainty, thus opening the door to new theories that complement previous ones.

7.2 Practical implications

Beyond theory, our empirical findings have significant implications for both practice and policymaking. The finding that hybrid strategies should be recommended for any manager facing of the difficulty that always exists in decision-making: based on their initial competitive strategy, our advice would be to invest resources and capabilities to achieve innovation, allowing the competitive strategy to be improved. For example, according to our findings, if a strategy is based on differentiation to compete in a turbulent environment, the focus should be on process innovation, which allows cost improvement. In contrast, in the case of a cost strategy, the focus should be on innovation, allowing the firm to achieve differentiation.

The results of this study offer interesting ideas for both managers and professionals, especially for managers of SMEs. First, this study highlights that SMEs need to establish strategies that capitalise on all types of resources and capabilities and not limit themselves to generating competitive advantages in a single direction, such as differentiation or cost leadership. In situations of dramatic change such as the current scenario, SME managers must be aware that applying hybrid or combined strategies may be the best way to ensure their company’s survival.

Second, implementing a hybrid strategy requires agile and flexible systems for greater and faster adaptation to changes. It also requires a combination of efficiency and innovation in both products and processes to deliver better business results than competitors that implement pure strategies (focussing solely on differentiation or cost reduction), thereby limiting their use of resources.

Third, organisations exist for a purpose: to continually improve their firm performance. Our results suggest that SME managers and leaders can improve performance through process innovation. This can be a key weapon in fighting competition through the design of sustainable and innovative processes.

Fourth, managers and leaders need to invest a significant amount of time and organisational resources to develop high levels of adaptive capacity because adaptive capacity significantly facilitates product and process innovation when a company uses a hybrid strategy. In other words, firm innovation largely depends on a firm’s intention to improve its adaptive capacity. As companies develop and implement these types of capabilities in their routines, systems, and organisational processes, innovation becomes a reality and helps companies remain competitive.

Finally, managers can use hybrid strategies to generate process innovation, making it more difficult for competitors to imitate them.

7.3 Limitations and future research directions

Although our study has numerous implications for theory and practice, it is not without limitations, which offer possibilities for future research. First, one of the limitations of the study is the use of a database, which limits the study to variables that are part of the survey; therefore, we lack information about how the culture or beliefs of the company affect the implementation of a hybrid strategy. Determining the contingency factors in the implementation of this type of strategy would be much more enriching. As a line of future research, we propose identifying both internal (e.g. organisational culture) and external factors (e.g. sector dynamism) that favour the hybridisation of competitive strategy to improve both innovation and business performance.

Second, our study focussed on SMEs, and we thus suggest that future researchers use our framework to undertake a comparative study between SMEs and large companies to determine the differences in terms of the direct and indirect effects between hybrid strategy, innovation, adaptive capacity, and firm performance.

Finally, the results of this study are based exclusively on quantitative information. Therefore, to arrive at solid implications for both theory and practice, we suggest that future research use a mixed-research design that combines quantitative and qualitative information to compensate for the weaknesses of each data source.

Despite the aforementioned limitations, the results of this study provide several vital insights for theory, researchers, organisations on hybrid strategies, and innovation and firm performance in the context of SMEs.


Theoretical model

Figure 1

Theoretical model

Result model

Figure 2

Result model

Interactive effect of hybrid strategy and adaptive capacity on product innovation

Figure 3

Interactive effect of hybrid strategy and adaptive capacity on product innovation

Interactive effect of hybrid strategy and adaptive capacity on process innovation

Figure 4

Interactive effect of hybrid strategy and adaptive capacity on process innovation

Prior studies on hybrid strategies in SMEs

Author (year)Type of studyData and sampleRelevant findings
Alnoor et al. (2023)Bibliometric analysisA total of 92 studies from the Scopus and Web of Science databaseThe hybrid strategy based on the strategies of Miles, Snow and Porter is of global interest because such an approach to an emerging strategy can lead to outstanding performance
Pertusa-Ortega et al. (2009)QuantitativeMultisectoral sample of 164 Spanish firmsHybrid strategies are associated with higher levels of business performance, particularly those that emphasise more on strategic dimensions, such as innovation
Acquaah and Yasai-Ardekani (2008)QuantitativeA total of 200 large and medium-sized companies in GhanaPositive performance implications of implementing a combined competitive strategy over singular or generic strategies
Claver-Cortés et al. (2012)QuantitativeA total of 164 large Spanish companies from different sectorsHybrid strategies are associated with higher levels of performance. Study of organisational design variables associated with the development of hybrid strategies
Salavou and Manolopoulos (2021)QuantitativeA total of 63 Greek social enterprisesCompared to purely strategic ones, hybrid options are more influentially linked to impact in terms of positive environmental, social, and economic contributions
Gabrielson et al. (2016)QuantitativeA total of 145 Finnish and 114 Swedish companiesThe realisation of a hybrid competitive strategy depends on the internationalisation phase and key resources
Anwar et al. (2021)Bibliometric analysisA total of 196 selected articles to identify trends of the most influential journals and papersSystematic review of the Miles and Snow typology and future strategies. The complexity and constantly evolving global market challenges suggest that a hybrid strategic perspective can produce better results

Source(s): Authors’ own elaboration

Sample of SMEs in Spain

Age (years)
Number of employees
No employees120.7
Micro-sized (1–9)64334.9
Small-sized (10–49)96552.4
Medium-sized (50–250)22212.1
CEO qualification
Higher education1,00154.3
Basic education84145.7
Family business

Note(s): Sampling error: 2.9%. Confidence level 95%

Source(s): Authors’ own elaboration

Item loadings and weights, construct reliability and convergent validity

ConstructItem/first order constructLoadingConstruct reliabilityAVE
Cronbach’s alphaDillon-Goldstein (ρc)Dijkstra-Henseler (ρA)
Hybrid strategy (HS) 1111
Product innovation (PTI) 0.830.880.830.65
Process innovation (PSI) 0.740.830.760.66
Firm performance (FP) 0.710.810.710.59
Adaptive capacity (AC) 1111

Source(s): Authors’ own elaboration

Descriptive statistics, correlation matrix and discriminant validity

1. Hybrid strategy13.835.2810.23 [0.18, 0.29]0.24 [0.16, 0.32]0.68 [0.57, 0.79]0.47 [0.39, 0.56]
2. Product innovation1.991.370.20**0.800.78 [0.,67, 0.89]0.18 [0.12, 0.25]0.21 [0.12, 0.31]
3. Process innovation2.201.440.21**0.69**0.810.24 [0.18, 0.31]0.27 [0.19, 0.35]
4. Firm performance3.680.850.58**0.17**0.14*0.770.71 [0.63, 0.80]
5. Adaptive capacity3.770.860.47**0.20**0.24**0.59**1

Note(s): *p < 0.05 **p < 0.01 or better (two-tailed test). SD = standard deviation. Underline values on the diagonal are the square roots of the AVE. Off-diagonal elements below the diagonal are correlations between the constructs. Off-diagonal elements in italics and above the diagonal are the HTMTs and their 95% confidence intervals (CI). As the HTMTs are below 0.85 and CIs do not include 1, there is discriminant validity (Hair et al., 2017)

Source(s): Authors’ own elaboration

Mediation effect size of process innovation

Indirect effectVariance explainedSize of the mediation effect
R2 includedR2 excludedR2 variance explained(f 2)
Hybrid Strategy → Process
Innovation → Firm Performance
0.370.340.030.05 (small effect)

Note(s): f2 = (R2 included – R2 excluded)/(1 – R2 included); effect sizes of f2 ≥ 0.02, ≥0.15, and ≥0.35 are small, medium and large, respectively (Cohen, 1988)

Source(s): Authors’ own elaboration


Acquaah, M. and Yasai-Ardekani, M. (2008), “Does the implementation of a combination competitive strategy yield incremental performance benefits? A new perspective from a transition economy in Sub-Saharan Africa”, Journal of Business Research, Vol. 61 No. 4, pp. 346-354, doi: 10.1016/j.jbusres.2007.06.021.

Agustia, D., Haryanto, S.D., Permatasari, Y. and Midiantari, P.N. (2022), “Product innovation, firm performance and moderating role of technology capabilities”, Asian Journal of Accounting Research, Vol. 7 No. 3, pp. 252-265, doi: 10.1108/ajar-12-2021-0266.

Agyapong, A., Ellis, F. and Domeher, D. (2016), “Competitive strategy and performance of family businesses: moderating effect of managerial and innovative capabilities”, Journal of Small Business and Entrepreneurship, Vol. 28 No. 6, pp. 449-477, doi: 10.1080/08276331.2016.1217727.

Aiken, L.S., West, S.G. and Reno, R.R. (1991), Multiple Regression: Testing and Interpreting Interactions, Sage, London.

Akgün, A.E., Keskin, H. and Byrne, J. (2012), “Antecedents and contingent effects of organizational adaptive capability on firm product innovativeness”, Journal of Product Innovation Management, Vol. 29 No. 1, pp. 171-189, doi: 10.1111/j.1540-5885.2012.00949.x.

Albers, S. and Rundshagen, V. (2020), “European airlines' strategic responses to the COVID-19 pandemic”, Journal of Air Transport Management, Vol. 87, 101863, doi: 10.1016/j.jairtraman.2020.101863.

Ali, S., Wu, W. and Ali, S. (2022), “Adaptive marketing capability and product innovations: the role of market ambidexterity and transformational leadership (evidence from Pakistani manufacturing industry)”, European Journal of Innovation Management, Vol. 25 No. 4, pp. 1056-1091, doi: 10.1108/ejim-12-2020-0520.

Alnoor, A., Khaw, K.W., Chew, X., Abbas, S. and Khattak, Z.Z. (2023), “The influence of the barriers of hybrid strategy on strategic competitive priorities: evidence from oil companies”, Global Journal of Flexible Systems Management, Vol. 24 No. 2, pp. 179-198, doi: 10.1007/s40171-022-00335-8.

AlQershi, N.A., Diah, M.L.B.M., Latiffi, A.B.A. and Ahmad, W.N.K.W. (2020), “Strategic innovation and competitive advantage of manufacturing SMEs: the mediating role of human capital”, Quality Innovation Prosperity, Vol. 24 No. 3, pp. 70-89, doi: 10.12776/qip.v24i3.1493.

Anwar, J. and Hasnu, S.A.F. (2017), “Strategy-performance relationships: a comparative analysis of pure, hybrid, and reactor strategies”, Journal of Advances in Management Research, Vol. 14 No. 4, pp. 446-465, doi: 10.1108/jamr-07-2016-0056.

Anwar, J., Hasnu, S.A.F., Butt, I. and Ahmed, N. (2021), “Miles and Snow Typology: most influential journals, articles, authors and subject areas”, Journal of Organizational Change Management, Vol. 34 No. 2, pp. 385-402, doi: 10.1108/jocm-07-2018-0190.

Aulakh, P.S., Kotabe, M. and Teegen, H. (2000), “Export strategies and performance of firms from emerging economies: evidence from Brazil, Chile, and Mexico”, Academy of Management Journal, Vol. 43 No. 3, pp. 342-361, doi: 10.2307/1556399.

Barney, J. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, Vol. 17 No. 1, pp. 99-120, doi: 10.1177/014920639101700108.

Baroto, M.B., Abdullah, M.M.B. and Wan, H.L. (2012), “Hybrid strategy: a new strategy for competitive advantage”, International Journal of Business and Management, Vol. 7 No. 20, 120, doi: 10.5539/ijbm.v7n20p120.

Batista, P.C.D.S., Lisboa, J.V.D.O., Augusto, M.G. and Almeida, F.E.B.D. (2016), “Effectiveness of business strategies in Brazilian textile industry”, Revista de Administração (São Paulo), Vol. 51, pp. 225-239, doi: 10.5700/rausp1236.

Baumann-Pauly, D., Wickert, C., Spence, L.J. and Scherer, A.G. (2013), “Organizing corporate social responsibility in small and large firms: size matters”, Journal of Business Ethics, Vol. 115 No. 4, pp. 693-705, doi: 10.1007/s10551-013-1827-7.

Bayo-Moriones, A. and Lera-López, F. (2007), “A firm-level analysis of determinants of ICT adoption in Spain”, Technovation, Vol. 27 Nos 6-7, pp. 352-366, doi: 10.1016/j.technovation.2007.01.003.

Bayraktar, C.A., Hancerliogullari, G., Cetinguc, B. and Calisir, F. (2017), “Competitive strategies, innovation, and firm performance: an empirical study in a developing economy environment”, Technology Analysis and Strategic Management, Vol. 29 No. 1, pp. 38-52, doi: 10.1080/09537325.2016.1194973.

Bernerth, J.B. and Aguinis, H. (2016), “A critical review and best‐practice recommendations for control variable usage”, Personnel Psychology, Vol. 69 No. 1, pp. 229-283, doi: 10.1111/peps.12103.

Biedenbach, T. and Müller, R. (2012), “Absorptive, innovative and adaptive capabilities and their impact on project and project portfolio performance”, International Journal of Project Management, Vol. 30 No. 5, pp. 621-635, doi: 10.1016/j.ijproman.2012.01.016.

Blanco, M. and Gutierrez, S. (2008), “El empleo del modelo de gestión de la calidad total en el sector de la distribución comercial en España: el caso de Mercadona”, Universia Business Review, Vol. 17, pp. 40-63.

Burdon, S., Mooney, G.R. and Al-Kilidar, H. (2015), “Navigating service sector innovation using co-creation partnerships”, Journal of Service Theory and Practice, Vol. 25 No. 3, pp. 285-303, doi: 10.1108/jstp-08-2013-0164.

Cegarra-Navarro, J.G., Soto-Acosta, P. and Wensley, A.K. (2016), “Structured knowledge processes and firm performance: the role of organizational agility”, Journal of Business Research, Vol. 69 No. 5, pp. 1544-1549, doi: 10.1016/j.jbusres.2015.10.014.

Centobelli, P., Cerchione, R. and Singh, R. (2019), “The impact of leanness and innovativeness on environmental and financial performance: insights from Indian SMEs”, International Journal of Production Economics, Vol. 212, pp. 111-124, doi: 10.1016/j.ijpe.2019.02.011.

Cheah, J., Leong, S.Y. and Fernando, Y. (2022), “Innovation strategies and organisational performance: the moderating role of company size among small-and medium-sized companies”, Benchmarking: An International Journal, Vol. 30 No. 9, pp. 2854-2868, doi: 10.1108/bij-03-2021-0139.

Chen, X. and Wu, J. (2011), “Do different guanxi types affect capability building differently? A contingency view”, Industrial Marketing Management, Vol. 40 No. 4, pp. 581-592, doi: 10.1016/j.indmarman.2010.12.014.

Christensen, C.M., Raynor, M.E. and Anthony, S.D. (2003), “Six keys to building new markets by unleashing disruptive innovation”, in Working Knowledge Harvard Management, EEUU.

Clark, B.H. (2000), “Managerial perceptions of marketing performance: efficiency, adaptability, effectiveness and satisfaction”, Journal of Strategic Marketing, Vol. 8 No. 1, pp. 3-25, doi: 10.1080/096525400346286.

Clauß, T., Kraus, S. and Jones, P. (2022), “Sustainability in family business: mechanisms, technologies and business models for achieving economic prosperity, environmental quality and social equity”, Technological Forecasting and Social Change, Vol. 176, 121450, doi: 10.1016/j.techfore.2021.121450.

Claver-Cortés, E., Pertusa-Ortega, E.M. and Molina-Azorín, J.F. (2012), “Characteristics of organizational structure relating to hybrid competitive strategy: implications for performance”, Journal of Business Research, Vol. 65 No. 7, pp. 993-1002, doi: 10.1016/j.jbusres.2011.04.012.

Cohen, J. (1988), Statistical Power Analysis for the Behavioral Sciences, Academic, New York.

Das, K. (2018), “Integrating lean systems in the design of a sustainable supply chain model”, International Journal of Production Economics, Vol. 198, pp. 177-190, doi: 10.1016/j.ijpe.2018.01.003.

Delaney, J.T. and Huselid, M.A. (1996), “The impact of human resource management practices on perceptions of organizational performance”, Academy of Management Journal, Vol. 39 No. 4, pp. 949-969, doi: 10.5465/256718.

Eshima, Y. and Anderson, B.S. (2017), “Firm growth, adaptive capability, and entrepreneurial orientation”, Strategic Management Journal, Vol. 38 No. 3, pp. 770-779, doi: 10.1002/smj.2532.

Espino-Rodríguez, T.F. and Lai, P.C. (2014), “Activity outsourcing and competitive strategy in the hotel industry. The moderator role of asset specificity”, International Journal of Hospitality Management, Vol. 42, pp. 9-19, doi: 10.1016/j.ijhm.2014.06.005.

Fatonah, S. and Haryanto, A.J.U.S.C.M. (2022), “Exploring market orientation, product innovation and competitive advantage to enhance the performance of SMEs under uncertain evens”, Uncertain Supply Chain Management, Vol. 10 No. 1, pp. 161-168, doi: 10.5267/j.uscm.2021.9.011.

Febrianti, R.A.M. and Herbert, A.S.N. (2022), “Business analysis and product innovation to improve SMEs business performance”, International Journal of Research and Applied Technology (INJURATECH), Vol. 2 No. 1, pp. 1-10, doi: 10.34010/injuratech.v2i1.6524.

Gabrielsson, M., Seppälä, T. and Gabrielsson, P. (2016), “Realizing a hybrid competitive strategy and achieving superior financial performance while internationalizing in the high-technology market”, Industrial Marketing Management, Vol. 54, pp. 141-153, doi: 10.1016/j.indmarman.2015.07.001.

Grant, R. (2002), “Contemporary strategy analysis”, in Concepts, Techniques, Applications, Blackwell, Malden, MA.

Gubitta, P. and Gianecchini, M. (2002), “Governance and flexibility in family‐owned SMEs”, Family Business Review, Vol. 15 No. 4, pp. 277-297, doi: 10.1111/j.1741-6248.2002.00277.x.

Hair, J.F., Hult, G.T.M., Ringle, C.M. and Sarstedt, M. (2017), A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM), Sage, Thousand Oaks.

Hair, J.F., Black, W.C., Babin, B., Anderson, R.E. and Tatham, R. (2018), Multivariate Data Analysis, 8th ed., Cengage, Boston.

Harel, R., Schwartz, D. and Kaufmann, D. (2021), “The relationship between innovation promotion processes and small business success: the role of managers' dominance”, Review of Managerial Science, Vol. 15 No. 7, pp. 1937-1960, doi: 10.1007/s11846-020-00409-w.

He, H. and Harris, L. (2020), “The impact of Covid-19 pandemic on corporate social responsibility and marketing philosophy”, Journal of Business Research, Vol. 116, pp. 176-182, doi: 10.1016/j.jbusres.2020.05.030.

He, Z.L. and Wong, P.K. (2004), “Exploration vs exploitation: an empirical test of the ambidexterity hypothesis”, Organization Science, Vol. 15 No. 4, pp. 481-494, doi: 10.1287/orsc.1040.0078.

Henseler, J., Ringle, C.M. and Sarstedt, M. (2015), “A new criterion for assessing discriminant validity in variance-based structural equation modeling”, Journal of the Academy of Marketing Science, Vol. 43 No. 1, pp. 115-135, doi: 10.1007/s11747-014-0403-8.

Hervás-Oliver, J.L., Sempere-Ripoll, F. and Boronat-Moll, C. (2014), “Process innovation strategy in SMEs, organizational innovation and performance: a misleading debate?”, Small Business Economics, Vol. 43 No. 4, pp. 873-886, doi: 10.1007/s11187-014-9567-3.

Heubeck, T. and Meckl, R. (2022), “More capable, more innovative? An empirical inquiry into the effects of dynamic managerial capabilities on digital firms' innovativeness”, European Journal of Innovation Management, Vol. 25 No. 6, pp. 892-915, doi: 10.1108/ejim-02-2022-0099.

Hilman, H. and Kaliappen, N. (2014), “Do cost leadership strategy and process innovation influence the performance of Malaysia hotel industry?”, Asian Social Science, Vol. 10 No. 10, 134, doi: 10.5539/ass.v10n10p134.

Hirshleifer, D., Hsu, P.H. and Li, D. (2013), “Innovative efficiency and stock returns”, Journal of Financial Economics, Vol. 107 No. 3, pp. 632-654, doi: 10.1016/j.jfineco.2012.09.011.

Homburg, C. and Jensen, O. (2007), “The thought worlds of marketing and sales: which differences make a difference?”, Journal of Marketing, Vol. 71 No. 3, pp. 124-142, doi: 10.1509/jmkg.71.3.124.

Hutomo, P. and Pudjiarti, E. (2021), “Supply chain assessment of the organizational learning and market uncertainty on corporate performance of small scale steel industry in Indonesia”, Uncertain Supply Chain Management, Vol. 9 No. 1, pp. 39-48, doi: 10.5267/j.uscm.2020.12.003.

James, L.R., Mulaik, S.A. and Brett, J.M. (2006), “A tale of two methods”, Organizational Research Methods, Vol. 9 No. 2, pp. 233-244, doi: 10.1177/1094428105285144.

Jaruzelski, B., Loehr, J. and Holman, R. (2011), “Why culture is key”, Strategy and Business, Vol. 65 No. 1, pp. 1-17.

Kaliappen, N., Chuah, F., Gorondutse, A.H. and Moktar, S.N.A. (2019), “Hybrid competitive strategy, strategic capability and performance”, Journal of Business and Retail Management Research, Vol. 13 No. 4, pp. 43-50.

Kaya, N. (2015), “Corporate entrepreneurship, generic competitive strategies, and firm performance in small and medium-sized enterprises”, Procedia-Social and Behavioral Sciences, Vol. 207, pp. 662-668, doi: 10.1016/j.sbspro.2015.10.136.

Kharub, M., Mor, R.S. and Rana, S. (2022), “Mediating role of manufacturing strategy in the competitive strategy and firm performance: evidence from SMEs”, Benchmarking: An International Journal, Vol. 29 No. 10, pp. 3275-3301, doi: 10.1108/bij-05-2021-0257.

Khosravi, P., Rezvani, A. and Ashkanasy, N.M. (2020), “Emotional intelligence: a preventive strategy to manage destructive influence of conflict in large scale projects”, International Journal of Project Management, Vol. 38 No. 1, pp. 36-46, doi: 10.1016/j.ijproman.2019.11.001.

Lapersonne, A.H.H. (2013), “Managing multiple sources of competitive advantage in a complex competitive environmen”, Future Studies Research Journal, Vol. 5 No. 2, pp. 221-251, doi: 10.24023/futurejournal/2175-5825/2013.v5i2.120.

Lapersonne, A., Sanghavi, N. and De Mattos, C. (2015), “Hybrid Strategy, ambidexterity and environment: toward an integrated typology”, Universal Journal of Management, Vol. 3 No. 12, pp. 497-508, doi: 10.13189/ujm.2015.031204.

Leitner, K.H. and Güldenberg, S. (2010), “Generic strategies and firm performance in SMEs: a longitudinal study of Austrian SMEs”, Small Business Economics, Vol. 35 No. 2, pp. 169-189, doi: 10.1007/s11187-009-9239-x.

Li, C.B. and Li, J.J. (2008), “Achieving superior financial performance in China: differentiation, cost Leadership, or both?”, Journal of International Marketing, Vol. 16 No. 3, pp. 1-22, doi: 10.1509/jimk.16.3.1.

Li, J.J., Zhou, K.Z. and Shao, A.T. (2009), “Competitive position, managerial ties, and profitability of foreign firms in China: an interactive perspective”, Journal of International Business Studies, Vol. 40 No. 2, pp. 339-352, doi: 10.1057/jibs.2008.76.

Lichtenthaler, U. (2017), “Shared value innovation: linking competitiveness and societal goals in the context of digital transformation”, International Journal of Innovation and Technology Management, Vol. 14 No. 04, 1750018, doi: 10.1142/s0219877017500183.

Lin, H., Zeng, S.X., Ma, H.Y., Qi, G.Y. and Tam, V.W. (2014), “Can political capital drive corporate green innovation? Lessons from China”, Journal of Cleaner Production, Vol. 64, pp. 63-72, doi: 10.1016/j.jclepro.2013.07.046.

Liu, Y. and Wang, M. (2022), “Entrepreneurial orientation, new product development and firm performance: the moderating role of legitimacy in Chinese high-tech SMEs”, European Journal of Innovation Management, Vol. 25 No. 1, pp. 130-149, doi: 10.1108/ejim-05-2020-0204.

MacKenzie, S.B., Podsakoff, P.M. and Jarvis, C.B. (2005), “The problem of measurement model misspecification in behavioral and organizational research and some recommended solutions”, Journal of Applied Psychology, Vol. 90 No. 4, pp. 710-730, doi: 10.1037/0021-9010.90.4.710.

Miller, A. and Dess, G.G. (1993), “Assessing Porter's (1980) model in terms of its generalizability, accuracy and simplicity”, Journal of Management Studies, Vol. 30 No. 4, pp. 553-585, doi: 10.1111/j.1467-6486.1993.tb00316.x.

Munck, J.C., Tkotz, A., Heidenreich, S. and Wald, A. (2020), “The performance effects of management control instruments in different stages of new product development”, Journal of Accounting and Organizational Change, Vol. 16 No. 2, pp. 259-284, doi: 10.1108/jaoc-09-2019-0101.

Murat Ar, I. and Baki, B. (2011), “Antecedents and performance impacts of product versus process innovation: empirical evidence from SMEs located in Turkish science and technology parks”, European Journal of Innovation Management, Vol. 14 No. 2, pp. 172-206, doi: 10.1108/14601061111124885.

OECD (2005), “Organisation for economdslbic Co-operation and development”, Annual Report, available at:

Oke, A., Burke, G. and Myers, A. (2007), “Innovation types and performance in growing UK SMEs”, International Journal of Operations and Production Management, Vol. 27 No. 7, pp. 735-753, doi: 10.1108/01443570710756974.

Oktemgil, M. and Greenley, G. (1997), “Consequences of high and low adaptive capability in UK companies”, European Journal of Marketing, Vol. 31 No. 7, pp. 445-466, doi: 10.1108/03090569710176619.

Pekovic, S. and Vogt, S. (2021), “The fit between corporate social responsibility and corporate governance: the impact on a firm's financial performance”, Review of Managerial Science, Vol. 15 No. 4, pp. 1095-1125, doi: 10.1007/s11846-020-00389-x.

Pertusa‐Ortega, E.M., Molina‐Azorín, J.F. and Claver‐Cortés, E. (2009), “Competitive strategies and firm performance: a comparative analysis of pure, hybrid and ‘stuck‐in‐the‐middle’strategies in Spanish firms”, British Journal of Management, Vol. 20 No. 4, pp. 508-523, doi: 10.1111/j.1467-8551.2008.00597.x.

Peterson, W., Gijsbers, G. and Wilks, M. (2003), “An organizational performance assessment system for agricultural research organizations: concepts, methods, and procedures”, in ISNAR Research Management Guidelines No. 7, International Service for National Agricultural Research, The Hague.

Piening, E.P. and Salge, T.O. (2015), “Understanding the antecedents, contingencies, and performance implications of process innovation: a dynamic capabilities perspective”, Journal of Product Innovation Management, Vol. 32 No. 1, pp. 80-97, doi: 10.1111/jpim.12225.

Pinheiro, P., Daniel, A. and Moreira, A. (2021), “Social enterprise performance: the role of market and social entrepreneurship orientations”, VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, Vol. 32 No. 1, pp. 45-60, doi: 10.1007/s11266-020-00266-x.

Piperopoulos, P. and Scase, R. (2009), “Competitiveness of small and medium sized enterprises: towards a two-dimensional model of innovation and business clusters”, International Journal of Business Innovation and Research, Vol. 3 No. 5, pp. 479-499, doi: 10.1504/ijbir.2009.027173.

Podsakoff, P.M., MacKenzie, S.B., Lee, J.Y. and Podsakoff, N.P. (2003), “Common method biases in behavioral research: a critical review of the literature and recommended remedies”, Journal of Applied Psychology, Vol. 88 No. 5, pp. 879-903, doi: 10.1037/0021-9010.88.5.879.

Podsakoff, P.M., MacKenzie, S.B. and Podsakoff, N.P. (2012), “Sources of method bias in social science research and recommendations on how to control it”, Annual Review of Psychology, Vol. 63 No. 1, pp. 539-569, doi: 10.1146/annurev-psych-120710-100452.

Porter, M.E. (1980), “Industry structure and competitive strategy: keys to profitability”, Financial Analysts Journal, Vol. 36 No. 4, pp. 30-41, doi: 10.2469/faj.v36.n4.30.

Porter, M.E. (1985), “Technology and competitive advantage”, Journal of Business Strategy, Vol. 5 No. 3, pp. 60-78, doi: 10.1108/eb039075.

Pundziene, A., Nikou, S. and Bouwman, H. (2022), “The nexus between dynamic capabilities and competitive firm performance: the mediating role of open innovation”, European Journal of Innovation Management, Vol. 25 No. 6, pp. 152-177, doi: 10.1108/ejim-09-2020-0356.

Qin, Z. (2007), “Process innovation, cost leadership and market power analysis based on electronic information industry”, Research Project of Zhejiang Philosophy and Social Science, Vol. 1 No. 1, pp. 358-363.

Ramadani, V., Hisrich, R.D., Abazi-Alili, H., Dana, L.P., Panthi, L. and Abazi-Bexheti, L. (2019), “Product innovation and firm performance in transition economies: a multi-stage estimation approach”, Technological Forecasting and Social Change, Vol. 140, pp. 271-280, doi: 10.1016/j.techfore.2018.12.010.

Ramos-González, M.D.M., Rubio-Andrés, M. and Sastre-Castillo, M.Á. (2022), “Effects of socially responsible human resource management (SR-HRM) on innovation and reputation in entrepreneurial SMEs”, International Entrepreneurship and Management Journal, Vol. 18 No. 3, pp. 1205-1233, doi: 10.1007/s11365-020-00720-8.

Rasoulzadeh, H., Hosseinipour, S.J., Yusof, N.A.M., Soltani, M. and Hashemi, S. (2013), “Effect of dimensions of corporate social responsibility on organization performance”, International Journal of Innovative Ideas, Vol. 13 No. 2, pp. 37-47.

Reichstein, T. and Salter, A. (2006), “Investigating the sources of process innovation among UK manufacturing firms”, Industrial and Corporate Change, Vol. 15 No. 4, pp. 653-682, doi: 10.1093/icc/dtl014.

Richard, P.J., Devinney, T.M., Yip, G.S. and Johnson, G. (2009), “Measuring organizational performance: towards methodological best practice”, Journal of Management, Vol. 35 No. 3, pp. 718-804, doi: 10.1177/0149206308330560.

Ringle, C.M., Wende, S. and Becker, J.M. (2015), SmartPLS 3, SmartPLS GmbH, Bönningstedt.

Rodrigo-Alarcón, J., García-Villaverde, P.M., Ruiz-Ortega, M.J. and Parra-Requena, G. (2018), “From social capital to entrepreneurial orientation: the mediating role of dynamic capabilities”, European Management Journal, Vol. 36 No. 2, pp. 195-209, doi: 10.1016/j.emj.2017.02.006.

Rodríguez-Escobar, J.A. and González-Benito, J. (2017), “The effect of strategic alignment on purchasing management”, Management Research Review, Vol. 40 No. 11, pp. 1175-1200, doi: 10.1108/mrr-02-2017-0042.

Rönkkö, M. and Ylitalo, J. (2011), “PLS marker variable approach to diagnosing and controlling for method variance”, Thirty Second International Conference on Information Systems, Shanghai.

Rouvinen, P. (2002), “Characteristics of product and process innovators: some evidence from the Finnish innovation survey”, Applied Economics Letters, Vol. 9 No. 9, pp. 575-580, doi: 10.1080/13504850110108102.

Rubio-Andrés, Mercedes, Ramos-González, M.D.M. and Sastre-Castillo, (2021), “Exploring the links between CSR, good governance, and corporate reputation: a proposal of indicators in SMEs”, in Research Anthology on Small Business Strategies for Success and Survival, IGI Global, pp. 59-83.

Rubio-Andrés, M., Ramos-González, M.D.M. and Sastre-Castillo, M.Á. (2022a), “Driving innovation management to create shared value and sustainable growth”, Review of Managerial Science, Vol. 16 No. 7, pp. 2181-2211, doi: 10.1007/s11846-022-00520-0.

Rubio-Andrés, M., Ramos-González, M.D.M. and Sastre-Castillo, M.Á. (2022b), “Do high performance work systems improve workplace well-being in SMES? Implications for financial performance”, Applied Research in Quality of Life, Vol. 17 No. 3, pp. 1287-1309, doi: 10.1007/s11482-021-09965-z.

Ruiz, B., Esteban, A. and Gutierrez, S. (2014), “Banking reputation during the economic downturn. Comparison among the leading Spanish financial institutions from the customer's perspective”, UCJC Business and Society Review, Vol. 43, pp. 16-35.

Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P. and Saaeidi, S.A. (2015), “How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction”, Journal of Business Research, Vol. 68 No. 2, pp. 341-350, doi: 10.1016/j.jbusres.2014.06.024.

Salavou, H. and Manolopoulos, D. (2021), “Pure and hybrid strategies in social enterprises: an empirical investigation”, EuroMed Journal of Business, Vol. 16 No. 3, pp. 274-289, doi: 10.1108/emjb-05-2019-0068.

Sancho-Zamora, R., Gutiérrez-Broncano, S., Hernández-Perlines, F. and Peña-García, I. (2021), “A multidimensional study of absorptive capacity and innovation capacity and their impact on business performance”, Frontiers in Psychology, Vol. 12, 751997, doi: 10.3389/fpsyg.2021.751997.

Singh, S.K., Del Giudice, M., Chiappetta Jabbour, C.J., Latan, H. and Sohal, A.S. (2022), “Stakeholder pressure, green innovation, and performance in small and medium‐sized enterprises: the role of green dynamic capabilities”, Business Strategy and the Environment, Vol. 31 No. 1, pp. 500-514, doi: 10.1002/bse.2906.

Sofia, I.P. and Augustine, Y. (2019), “Does enterprise risk management and hybrid strategy affect to organizational performance”, South East Asia Journal of Contemporary Business, Economics and Law, Vol. 20 No. 5, pp. 120-126.

Spanish Central Business Directory (2021), available at:

Spanos, Y.E., Zaralis, G. and Lioukas, S. (2004), “Strategy and industry effects on profitability: evidence from Greece”, Strategic Management Journal, Vol. 25 No. 2, pp. 139-165, doi: 10.1002/smj.369.

Sridhar, M. and Mehta, A. (2018), “The moderating and mediating role of corporate reputation in the link between service innovation and cross-buying intention”, Corporate Reputation Review, Vol. 21 No. 2, pp. 50-70, doi: 10.1057/s41299-018-0044-9.

Suoniemi, S., Meyer-Waarden, L., Munzel, A., Zablah, A.R. and Straub, D. (2020), “Big data and firm performance: the roles of market-directed capabilities and business strategy”, Information and Management, Vol. 57 No. 7, 103365, doi: 10.1016/

Suwignjo, P., Gunarta, I.K., Wessiani, N.A., Prasetyo, A.E. and Yuwana, L. (2022), “Framework for measuring process innovation performance at Indonesian state-owned companies”, Journal of Open Innovation: Technology, Market, and Complexity, Vol. 8 No. 2, pp. 1-22, doi: 10.3390/joitmc8020095.

Szczygielski, K., Grabowski, W., Pamukcu, M.T. and Tandogan, V.S. (2017), “Does government support for private innovation matter? Firm-level evidence from two catching-up countries”, Research Policy, Vol. 46 No. 1, pp. 219-237, doi: 10.1016/j.respol.2016.10.009.

Taouab, O. and Issor, Z. (2019), “Firm performance: definition and measurement models”, European Scientific Journal, Vol. 15 No. 1, pp. 93-106, doi: 10.19044/esj.2019.v15n1p93.

Tavoletti, E., Kazemargi, N., Cerruti, C., Grieco, C. and Appolloni, A. (2022), “Business model innovation and digital transformation in global management consulting firms”, European Journal of Innovation Management, Vol. 25 No. 6, pp. 612-636.

Teece, D.J. (2018), “Business models and dynamic capabilities”, Long Range Planning, Vol. 51 No. 1, pp. 40-49, doi: 10.1016/j.lrp.2017.06.007.

Teece, D.J., Pisano, G. and Shuen, A. (1997), “Dynamic capabilities and strategic management”, Strategic Management Journal, Vol. 18 No. 7, pp. 509-533, doi: 10.1002/(SICI)1097-0266(199708)18:73.0.CO;2-Z.

Tung, J. (2012), “A study of product innovation on firm performance”, International Journal of Organizational Innovation (Online), Vol. 4 No. 3, pp. 84-97.

Tuominen, M., Rajala, A. and Möller, K. (2004), “How does adaptability drive firm innovativeness?”, Journal of Business Research, Vol. 57 No. 5, pp. 495-506, doi: 10.1016/s0148-2963(02)00316-8.

Vaccaro, A., Parente, R. and Veloso, F.M. (2010), “Knowledge management tools, inter-organizational relationships, innovation and firm performance”, Technological Forecasting and Social Change, Vol. 77 No. 7, pp. 1076-1089, doi: 10.1016/j.techfore.2010.02.006.

Varis, M. and Littunen, H. (2010), “Types of innovation, sources of information and performance in entrepreneurial SMEs”, European Journal of Innovation Management, Vol. 13 No. 2, pp. 128-154, doi: 10.1108/14601061011040221.

Wang, C.L. and Ahmed, P.K. (2007), “Dynamic capabilities: a review and research agenda”, International Journal of Management Reviews, Vol. 9 No. 1, pp. 31-51, doi: 10.1111/j.1468-2370.2007.00201.x.

Wang, C., Guo, F. and Zhang, Q. (2023), “How does disruptive innovation influence firm performance? A moderated mediation model”, European Journal of Innovation Management, Vol. 26 No. 3, pp. 798-820, doi: 10.1108/ejim-07-2021-0369.

Wronka-Pospiech, M. and Fraczkiewicz-Wronka, A. (2016), “Strategic orientation and organisational culture in polish public organisations: insights from the miles and snow typology”, Management, Vol. 20 No. 1, pp. 126-141, doi: 10.1515/manment-2015-0029.

Yeh-Yun Lin, C. and Yi-Ching Chen, M. (2007), “Does innovation lead to performance? An empirical study of SMEs in Taiwan”, Management Research News, Vol. 30 No. 2, pp. 115-132, doi: 10.1108/01409170710722955.

Zamani, S.Z. (2022), “Small and Medium Enterprises (SMEs) facing an evolving technological era: a systematic literature review on the adoption of technologies in SMEs”, European Journal of Innovation Management, Vol. 25 No. 6, pp. 735-757, doi: 10.1108/ejim-07-2021-0360.


The research are funded by UCM-Cofares Research Chair, the Faculty of Commerce and Tourism, Complutense University of Madrid (Spain) and by the project SBPLY/21/180501/000260 European Regional Development Fund (ERDF), within the Operational Programme of Castilla-La Mancha 2021-2027.

Corresponding author

Mercedes Rubio-Andrés can be contacted at:

Related articles