Innovation capabilities and performance: are they truly linked in SMEs?

Maldonado-Guzmán, Gonzalo; Garza-Reyes, Jose Arturo; Pinzón-Castro, Sandra Yesenia; Kumar, Vikas

Abstract

© 2018, Emerald Publishing Limited. Purpose: In an environment where business uncertainty is the norm, developing innovation capability in an organisation is increasingly important. The purpose of this paper is to investigate the effects that innovation capabilities have on the business performance of small- and medium-sized enterprises (SMEs) within the context of a regional developing and emerging economy of Mexico, in this case, Aguascalientes. Design/methodology/approach: The approach of this study is quantitative. Four research hypotheses were formulated and tested using structural equation modelling (SEM). Data were collected through a questionnaire survey responded by 308 SMEs located in the Aguascalientes state of Mexico. Findings: The results obtained show that innovation in products, processes, marketing and management has a positive and significant effect on the business return of Mexican SMEs. Originality/value: The paper complements the limited body of knowledge currently existent in the SMEs innovation literature, particularly when compared to that of large organisations. Similar works in other settings have provided mixed results in regards to the effects that innovation capabilities have on the business performance of SMEs. Thus, this paper offers a refined understanding and validation of the relationship between innovation capabilities and business performance, especially within the context of SMEs, and insights into some of the innovation aspects that managers may consider when formulating the strategies of their organisations. Finally, it enables such relationship to be understood within a particular situation, contributing in this manner to expand the body of knowledge in the innovation field.

• Journal Article Type: Article
• Acceptance Date: Apr 30, 2018
• Online Publication Date: Jul 10, 2018
• Publication Date: Mar 26, 2019
• Deposit Date: May 8, 2018
• Publicly Available Date: Jul 20, 2018
• Journal: International Journal of Innovation Science
• Print ISSN: 1757-2223
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 11
• Issue: 1
• Pages: 48-62
• DOI: https://doi.org/10.1108/IJIS-12-2017-0139
• Keywords: innovation capabilities, Mexico, business performance, SMEs
• Public URL: https://uwe-repository.worktribe.com/output/854832
• Publisher URL: https://doi.org/10.1108/IJIS-12-2017-0139
• Additional Information: Additional Information : This is the accepted version of the article published in International Journal of Innovation Science. the final version is available at https://doi.org/10.1108/IJIS-12-2017-0139
• Contract Date: May 8, 2018