An examination of spiritual capital and innovation: insights from high-growth aspiration entrepreneurs in a developing economy
Journal of Small Business and Enterprise Development
ISSN: 1462-6004
Article publication date: 5 February 2024
Issue publication date: 23 July 2024
Abstract
Purpose
This study aimed to examine the relationship between spiritual capital and small business innovation in a developing market economy and the highly religious society of Minangkabau.
Design/methodology/approach
A quantitative method was used by analyzing the data with partial least squares (PLS), comprising 278 entrepreneurial and high-growth aspiration small and medium-sized enterprises (SMEs) owners in a developing economy such as Indonesia.
Findings
The results showed that spiritual capital was a source of acquiring knowledge from innovation failure situations, serving as a catalyst for the occurrence of novelty and differentiation-related innovation.
Research limitations/implications
The perspective of spiritual capital was provided within a religious community, showing that future reports should produce comparative analyses from varying contexts. Since understanding entrepreneurs' perspectives and spiritual capital situation remained ambiguous, the performance of qualitative analysis was crucial.
Practical implications
Entrepreneurs were expected to obtain considerable benefits from spiritual capital as a source of inspiration for differentiation and higher levels of novelty-related innovation. Similarly, policymakers should implement the capital and learn from failure to evaluate entrepreneurial SMEs concerning their capabilities.
Originality/value
Previous studies were unable to acknowledge an alternative source of innovation in a specific context, such as entrepreneurial SMEs with high-growth aspirations and spiritual capital. This is because capital contributes to innovation, helps in the assimilation of innovative knowledge and causes novelty-related innovation.
Keywords
Acknowledgements
This work was supported by RIIM from the National Research and Innovation Agency of Indonesia. The authors also acknowledge the Editor of Journal of Small Business and Enterprise Development-Professor Patrick J. Murphy-as well as reviewers for their helpful comments and suggestions.
Citation
Games, D., Siwi Agustina, T., Lupiyoadi, R. and Kartika, R. (2024), "An examination of spiritual capital and innovation: insights from high-growth aspiration entrepreneurs in a developing economy", Journal of Small Business and Enterprise Development, Vol. 31 No. 4, pp. 705-723. https://doi.org/10.1108/JSBED-12-2022-0504
Publisher
:Emerald Publishing Limited
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