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Sustaining Innovation Performance in SMEs: Exploring the Roles of Strategic Entrepreneurship and IT Capabilities

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  • Maurice J. Lyver

    (Graduate Institute of Technology Management, National Chung Hsing University, No. 250, KuoKuang Rd., Taichung 402, Taiwan
    DOAE, National Taichung University of Science and Technology, No. 129 San-Ming Rd., Taichung 40401, Taiwan)

  • Ta-Jung Lu

    (Graduate Institute of Technology Management, National Chung Hsing University, No. 250, KuoKuang Rd., Taichung 402, Taiwan)

Abstract

Recent research questions our understanding of the processes at play regarding information technology (IT) capabilities’ contribution to innovation performance, particularly under environmental uncertainty. Strategic entrepreneurship (SE) or the interface of entrepreneurship and strategic management, which aims to answer the very question of how firms create value or wealth and sustain success in increasingly competitive and dynamic environments, is deemed the appropriate catalyst to further explore this link. Thus, this study attempts to examine the driving effects of IT capabilities on product innovation performance (PIP) by exploring the mediating role of SE. Data were collected from 164 small- and medium-sized enterprises (SME) information communication technology (ICT) firms in Canada. Partial least squares (PLS) regression tested the hypotheses derived from the research model, and data exploration and analysis including visual analytics were performed in R. Results confirm that IT capabilities drive PIP and thereby create firm level value. Secondly, SE had a direct impact on PIP, and SE partially mediates IT capabilities effect on PIP. To date, SE research has mostly been conceptual in nature making this study one of the few to empirically capture the phenomena and highlight its link to sustainable innovation performance.

Suggested Citation

  • Maurice J. Lyver & Ta-Jung Lu, 2018. "Sustaining Innovation Performance in SMEs: Exploring the Roles of Strategic Entrepreneurship and IT Capabilities," Sustainability, MDPI, vol. 10(2), pages 1-27, February.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:2:p:442-:d:130859
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    References listed on IDEAS

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