TY - JOUR
T1 - Disentangling the effects of organizational capabilities, innovation and firm size on SME sales growth
AU - Uhlaner, Lorraine M.
AU - van Stel, André
AU - Duplat, Valérie
AU - Zhou, Haibo
N1 - Funding Information:
Acknowledgments The present paper has gone through many iterations. The authors would like to thank Mickey Folkeringa and Joris Meijaard for their contributions to earlier versions of the paper. The research has been supported by the framework of the research program SCALES, carried out by Panteia/EIM and financed by the Dutch Ministry of Economic Affairs, Agriculture and Innovation.
PY - 2013/10
Y1 - 2013/10
N2 - This paper focuses on certain drivers of SME sales growth related to knowledge and innovation. Building on the dynamic capabilities literature, we test whether two organizational capabilities (external sourcing and employee involvement in renewal activities) predict sales growth, and if so, whether such effects are mediated by process and/or product innovation. Based on survey data from a panel study of Dutch SMEs, and controlling for several firm characteristics (firm size, sector, age and family business), we conclude that external sourcing has direct effects on both product and process innovation, with an indirect effect (mediated by process innovation) on sales growth. In line with our hypothesis development, we also find that employee involvement, while positively affecting process innovation, has a negative effect on sales growth. Firm size moderates the effects of two of the variables (external sourcing and product innovation) on sales growth, with more positive effects found for the smallest firms, results supporting the nimbleness (versus resource-based) view.
AB - This paper focuses on certain drivers of SME sales growth related to knowledge and innovation. Building on the dynamic capabilities literature, we test whether two organizational capabilities (external sourcing and employee involvement in renewal activities) predict sales growth, and if so, whether such effects are mediated by process and/or product innovation. Based on survey data from a panel study of Dutch SMEs, and controlling for several firm characteristics (firm size, sector, age and family business), we conclude that external sourcing has direct effects on both product and process innovation, with an indirect effect (mediated by process innovation) on sales growth. In line with our hypothesis development, we also find that employee involvement, while positively affecting process innovation, has a negative effect on sales growth. Firm size moderates the effects of two of the variables (external sourcing and product innovation) on sales growth, with more positive effects found for the smallest firms, results supporting the nimbleness (versus resource-based) view.
KW - Dynamic capabilities
KW - Empirical study
KW - Innovation
KW - Knowledge
KW - Lead-lag effect
KW - SMEs
KW - Sales growth
UR - http://www.scopus.com/inward/record.url?scp=84884533817&partnerID=8YFLogxK
U2 - 10.1007/s11187-012-9455-7
DO - 10.1007/s11187-012-9455-7
M3 - Article
AN - SCOPUS:84884533817
SN - 0921-898X
VL - 41
SP - 581
EP - 607
JO - Small Business Economics
JF - Small Business Economics
IS - 3
ER -
