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Innovation capabilities and export performance of SMEs: does managers' risk-taking propensity matter

Year: 2023

Type: article

Abstract: Purpose This paper aims to examine the relationship between innovation capabilities (INVC) and export performance (EXPERF) of manufacturing small and medium enterprises (SMEs). Moreover, the paper aims to investigate the moderating effect of risk-taking propensity (RSTP) in the relationship between INVC and the SMEs’ EXPERF. Design/methodology/approach A cross-sectional survey design was used and data were collected through structured questionnaires from 250 manufacturing exporting SMEs in Tanzania. Confirmatory factor analysis was used to test the measurement model. The hypotheses were empirically tested using PROCESS macro test. Findings The findings affirm that INVC is a significant predictor of EXPERF. Additionally, RSTP was found to be a significant moderator of the relationship between INVC and EXPERF. Research limitations/implications Although the study was able to accomplish its overall objective, it is limited in terms of the context under which the study was conducted. This study covered only manufacturing SMEs in a single country, Tanzania. Hence, the findings should be interpreted with caution since each country has specific institutional environments that support innovation. Originality/value The findings of this study expand the application of the resource-based view (RBV) theory in exporting context. The study revealed how INVC as an intangible resource can lead to successful performance. Hence, the findings of this study broaden the applicability of RBV theory. Also, this study contributes to the debate about the innovation-export performance relationship by revealing a moderating role of RSTP in the relationship between INVC and EXPERF. 📚 Further Readings 📖 A review of approaches to empirical research on the resource-based view of the firm Armstrong , C. and Shimizu , K. · (2007) · Journal of Management , Vol. 33 No. 6 , pp. 959 -986

Source: Journal of Money and Business

DOI: 10.1108/jmb-10-2022-0053

Authors: Denis Ringo, Amani Tegambwage, Isaac Kazungu

Institutions: The University of Dodoma, Moshi Co-operative University

Language: English

Topic: Innovation and Knowledge Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: diamond

Funder: University of Dodoma