Network ties and entrepreneurial orientation: Innovative performance of SMEs in a developing country

Theresia Gunawan, J. Jacob, Geert Duijsters

Research output: Contribution to journalArticleScientificpeer-review

23 Citations (Scopus)

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 small and medium enterprises located in the Cibaduyut footwear-manufacturing cluster, Indonesia. We explore the effectiveness of knowledge acquisition through intra-cluster ties and extra-cluster ties on innovative performance. We find that extra-cluster ties mediate the relationship between proactiveness and innovative performance. Also, 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. Over-reliance on within-cluster knowledge sharing may result in the diffusion of redundant knowledge rather than making new knowledge available to the firm. Overall, our findings point to the synergistic effects of entrepreneurial orientation and extra-cluster ties on innovative performance.
Original languageEnglish
Pages (from-to)575-599
JournalInternational Entrepreneurship and Management Journal
Volume12
Issue number2
DOIs
Publication statusPublished - Jun 2016

Keywords

  • proactivesness
  • risk taking
  • intra-cluster ties and extra-cluster ties
  • small and medium enterprises

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