Entrepreneurial Orientation and Network Ties: Innovative Performance of SMEs in an Emerging-Economy Manufacturing Cluster

Theresia Gunawan (), Jojo Jacob and Geert Duysters ()

No 2013/28, Working Papers from Maastricht School of Management

Abstract: This study investigates the role of intra-cluster ties, extra-cluster ties, and entrepreneurial orientation in shaping firms’ innovative performance. We conduct our analysis on a primary data set of 120 SMEs in the Cibaduyut footwear-manufacturing cluster, Indonesia. We find that extra-cluster ties mediate the relationship between proactiveness and innovative performance. A combination of high extra-cluster ties and risk taking exert a positive impact on innovative performance. Surprisingly, we find that risk taking negatively moderates the influence of intra-cluster ties on innovative performance. Overall, the findings of this study point to the synergistic effects of entrepreneurial orientation and extra-cluster ties on innovative performance.

Pages: 27 pages
Date: 2013-08
New Economics Papers: this item is included in nep-cse, nep-ent, nep-hrm, nep-ino, nep-net, nep-sbm, nep-sea and nep-ure
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http://web2.msm.nl/RePEc/msm/wpaper/MSM-WP2013-28.pdf First version, 2013 (application/pdf)

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