Combining Knowledge to Improve Product and Process Innovation and Performance of SMES in Developing Economies

Fábio de Oliveira Paula () and Jorge Ferreira da Silva
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Fábio de Oliveira Paula: Pontificia Universidade Catolica do Rio de Janeiro, Brazil
Jorge Ferreira da Silva: Pontificia Universidade Catolica do Rio de Janeiro, Brazil

International Journal of Innovation and Technology Management (IJITM), 2020, vol. 17, issue 02, 1-20

Abstract: The aim of this study was to investigate how combining internal and external knowledge sources (KS) may influence product and process innovation of small and medium enterprises (SMEs) from developing economies in order to improve their financial performances (FPs). Previous research mostly supported that internal KS influence innovation directly as well as indirectly, moderating the relationship between external KS and innovation performance (IP), with this moderation being more prominent in the case of high-technology firms. These studies also supported that innovation influences FP more strongly in this type of firm. The present study proposes that, in developing countries, the opposite occurs. The moderation relationship of internal KS on the relationship between external KS and IP would be stronger in low-technology firms, as well as the positive effect of innovation on FP. We tested our propositions using a sample of 1551 Brazilian manufacturing SMEs controlling by the technological intensity of the industry and confirmed a good part of the proposed hypotheses.

Keywords: Innovation performance; internal knowledge sources; external knowledge sources; financial performance; SMEs; developing economies (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1142/S0219877020500133

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