The Effect of Formal and Informal External Collaboration on Innovation Performance of SMEs: Evidence from China

Chang Lu and Bo Yu
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Chang Lu: School of Management, Harbin Institute of Technology, Harbin 150001, China
Bo Yu: School of Management, Harbin Institute of Technology, Harbin 150001, China

Sustainability, 2020, vol. 12, issue 22, 1-21

Abstract: External collaboration is an effective way for small and medium-sized enterprises (SMEs) to improve innovation performance and obtain sustainable competitiveness. This study focuses on the influence of external collaboration on innovation performance of SMEs. Specifically, this study classifies external collaboration into formal and informal external collaboration, and explores their different impacts on innovation performance of SMEs, respectively. Moreover, this study examines the moderating effects of managers’ entrepreneurial orientation and organizational legitimacy on the relationships between formal and informal collaboration and innovation performance of SMEs. Survey data from 213 high-tech manufacturing SMEs in China reveals that: (1) Both formal and informal external collaboration have positive effects on innovation performance of SMEs, and informal external collaboration offers greater benefits than formal external collaboration; (2) managers’ entrepreneurial orientation positively moderates the relationship between informal external collaboration and SMEs’ innovation performance; (3) organizational legitimacy positively moderates the relationships between formal and informal external collaboration and SMEs’ innovation performance. This study enriches the research on the relationship between external collaboration and innovation performance of SMEs, and advances the understanding of the contextual factors between formal and informal external collaboration-SMEs’ innovation performance relationships through elucidating the moderating role of managers’ entrepreneurial orientation and organizational legitimacy.

Keywords: formal external collaboration; informal external collaboration; innovation performance; managers’ entrepreneurial orientation; organizational legitimacy; SMEs (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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