IDEAS home Printed from https://ideas.repec.org/a/pal/abaman/v19y2020i5d10.1057_s41291-019-00072-4.html
   My bibliography  Save this article

How does customer and supplier cooperation in micro-enterprises affect innovation? Evidence from Pakistani handicraft micro-enterprises

Author

Listed:
  • Yongzhong Yang

    (Sichuan University)

  • Mohsin Shafi

    (Sichuan University)

Abstract

Due to resource constraints, short product-life cycle, and increased competition, handicraft micro-enterprises face many difficulties. By investigating the individual effects of customer and supplier cooperations on innovation (and thereby, firm performance), this study reveals how micro-enterprises can overcome such limitations and maintain competitiveness in the market. We find that cooperation with both partners significantly and positively affects product innovation, but only cooperation with suppliers has significant and positive effect on process innovation. In turn, product and process innovations significantly and positively affect a firm’s financial and non-financial performances. Our findings provide useful theoretical and practical implications.

Suggested Citation

  • Yongzhong Yang & Mohsin Shafi, 2020. "How does customer and supplier cooperation in micro-enterprises affect innovation? Evidence from Pakistani handicraft micro-enterprises," Asian Business & Management, Palgrave Macmillan, vol. 19(5), pages 530-559, November.
    • Handle: RePEc:pal:abaman:v:19:y:2020:i:5:d:10.1057_s41291-019-00072-4
    DOI: 10.1057/s41291-019-00072-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41291-019-00072-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41291-019-00072-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bowen, Frances E. & Rostami, Mahdi & Steel, Piers, 2010. "Timing is everything: A meta-analysis of the relationships between organizational performance and innovation," Journal of Business Research, Elsevier, vol. 63(11), pages 1179-1185, November.
    2. Rodriguez, Mercedes & Doloreux, David & Shearmur, Richard, 2017. "Variety in external knowledge sourcing and innovation novelty: Evidence from the KIBS sector in Spain," Technovation, Elsevier, vol. 68(C), pages 35-43.
    3. Mohsin Shafi & Yongzhong Yang & Zobi Khan & Aixian Yu, 2019. "Vertical Co-operation in Creative Micro-Enterprises: A Case Study of Textile Crafts of Matiari District, Pakistan," Sustainability, MDPI, vol. 11(3), pages 1-16, February.
    4. Patricia S. Sánchez-Medina & Jack Corbett & Arcelia Toledo-López, 2011. "Environmental Innovation and Sustainability in Small Handicraft Businesses in Mexico," Sustainability, MDPI, vol. 3(7), pages 1-19, July.
    5. Minna Saunila & Sanna Pekkola & Juhani Ukko, 2014. "The relationship between innovation capability and performance," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 63(2), pages 234-249, January.
    6. O'Cass, Aron & Sok, Phyra, 2013. "Exploring innovation driven value creation in B2B service firms: The roles of the manager, employees, and customers in value creation," Journal of Business Research, Elsevier, vol. 66(8), pages 1074-1084.
    7. Gatewood, Elizabeth J. & Shaver, Kelly G. & Gartner, William B., 1995. "A longitudinal study of cognitive factors influencing start-up behaviors and success at venture creation," Journal of Business Venturing, Elsevier, vol. 10(5), pages 371-391, September.
    8. Suwastika Naidu & Anand Chand & Paul Southgate, 2014. "Determinants of innovation in the handicraft industry of Fiji and Tonga: an empirical analysis from a tourism perspective," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 8(4), pages 318-330, October.
    9. Tether, Bruce S., 2002. "Who co-operates for innovation, and why: An empirical analysis," Research Policy, Elsevier, vol. 31(6), pages 947-967, August.
    10. Philipp Koellinger, 2008. "Why are some entrepreneurs more innovative than others?," Small Business Economics, Springer, vol. 31(1), pages 21-37, June.
    11. Ping, Robert Jr., 2004. "On assuring valid measures for theoretical models using survey data," Journal of Business Research, Elsevier, vol. 57(2), pages 125-141, February.
    12. Ian Jackson & Philip Tomlinson, 2009. "The role of cooperation in a creative industry: the case of UK studio pottery," International Review of Applied Economics, Taylor & Francis Journals, vol. 23(6), pages 691-708.
    13. Philip R. Tomlinson & Ian Jackson, 2013. "Cooperative Ties and the Impact of External Factors upon Innovation in an Industrial District: Some Insights from the North Staffordshire Table and Giftware Sector," Regional Studies, Taylor & Francis Journals, vol. 47(4), pages 580-596, April.
    14. Michael Polder & George van Leeuwen & Pierre Mohnen & Wladimir Raymond, 2010. "Product, Process and Organizational Innovation: Drivers, Complementarity and Productivity Effects," DRUID Working Papers 10-24, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    15. Chang, Yuan-Chieh & Linton, Jonathan D. & Chen, Min-Nan, 2012. "Service regime: An empirical analysis of innovation patterns in service firms," Technological Forecasting and Social Change, Elsevier, vol. 79(9), pages 1569-1582.
    16. Brito, Luiz Artur Ledur & Brito, Eliane Pereira Zamith & Hashiba, Luciana Harumi, 2014. "What type of cooperation with suppliers and customers leads to superior performance?," Journal of Business Research, Elsevier, vol. 67(5), pages 952-959.
    17. Rosalind C. Paige, 2009. "Profiles Of Successful Craft Micro-Retailers," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 14(04), pages 393-412.
    18. Evangelista, Rinaldo & Vezzani, Antonio, 2010. "The economic impact of technological and organizational innovations. A firm-level analysis," Research Policy, Elsevier, vol. 39(10), pages 1253-1263, December.
    19. Nishikawa, Hidehiko & Schreier, Martin & Ogawa, Susumu, 2013. "User-generated versus designer-generated products: A performance assessment at Muji," International Journal of Research in Marketing, Elsevier, vol. 30(2), pages 160-167.
    20. Zahra, Shaker A., 1993. "Environment, corporate entrepreneurship, and financial performance: A taxonomic approach," Journal of Business Venturing, Elsevier, vol. 8(4), pages 319-340, July.
    21. Tomlinson, Philip R., 2010. "Co-operative ties and innovation: Some new evidence for UK manufacturing," Research Policy, Elsevier, vol. 39(6), pages 762-775, July.
    22. Vinay K. Garg & Bruce A. Walters & Richard L. Priem, 2003. "Chief executive scanning emphases, environmental dynamism, and manufacturing firm performance," Strategic Management Journal, Wiley Blackwell, vol. 24(8), pages 725-744, August.
    23. George P. Huber & Danial J. Power, 1985. "Retrospective reports of strategic‐level managers: Guidelines for increasing their accuracy," Strategic Management Journal, Wiley Blackwell, vol. 6(2), pages 171-180, April.
    24. Monjon, Stephanie & Waelbroeck, Patrick, 2003. "Assessing spillovers from universities to firms: evidence from French firm-level data," International Journal of Industrial Organization, Elsevier, vol. 21(9), pages 1255-1270, November.
    25. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    26. repec:dau:papers:123456789/13785 is not listed on IDEAS
    27. Yongzhong Yang & Mohsin Shafi & Xiaoting Song & Ruo Yang, 2018. "Preservation of Cultural Heritage Embodied in Traditional Crafts in the Developing Countries. A Case Study of Pakistani Handicraft Industry," Sustainability, MDPI, vol. 10(5), pages 1-18, April.
    28. Mark Freel & Richard Harrison, 2006. "Innovation and cooperation in the small firm sector: Evidence from 'Northern Britain'," Regional Studies, Taylor & Francis Journals, vol. 40(4), pages 289-305.
    29. Katherine Gundolf & Annabelle Jaouen & Johanna Gast, 2018. "Motives for strategic alliances in cultural and creative industries," Post-Print hal-02945306, HAL.
    30. Xiaofang Zhan & Stuart Walker, 2018. "Value Direction: Moving Crafts toward Sustainability in the Yangtze River Delta, China," Sustainability, MDPI, vol. 10(4), pages 1-20, April.
    31. Dunk, Alan S., 2011. "Product innovation, budgetary control, and the financial performance of firms," The British Accounting Review, Elsevier, vol. 43(2), pages 102-111.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohsin Shafi & Liu Junrong & Yongzhong Yang & Deng Jian & Imran UR Rahman & Mahdi Moudi, 2021. "Factors Influencing the Consumer Acceptance of Innovation in Handicraft Products," SAGE Open, , vol. 11(4), pages 21582440211, December.
    2. Ju Han Yeon & Seung-hwan Jang, 2023. "The Relation between Bio-Industry Performance and Innovation Capacity—Focusing on the Korean Bio-Industry," Sustainability, MDPI, vol. 15(9), pages 1-17, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yongzhong Yang & Mohsin Shafi, 0. "How does customer and supplier cooperation in micro-enterprises affect innovation? Evidence from Pakistani handicraft micro-enterprises," Asian Business & Management, Palgrave Macmillan, vol. 0, pages 1-30.
    2. Mohsin Shafi & Md Nazirul Islam Sarker & Liu Junrong, 2019. "Social Network of Small Creative Firms and Its Effects on Innovation in Developing Countries," SAGE Open, , vol. 9(4), pages 21582440198, December.
    3. Mohsin Shafi & Yongzhong Yang & Zobi Khan & Aixian Yu, 2019. "Vertical Co-operation in Creative Micro-Enterprises: A Case Study of Textile Crafts of Matiari District, Pakistan," Sustainability, MDPI, vol. 11(3), pages 1-16, February.
    4. Mohsin Shafi & Liu Junrong & Yongzhong Yang & Deng Jian & Imran UR Rahman & Mahdi Moudi, 2021. "Factors Influencing the Consumer Acceptance of Innovation in Handicraft Products," SAGE Open, , vol. 11(4), pages 21582440211, December.
    5. Roy, Subhadip & Mohapatra, Subhalaxmi, 2023. "Exploring the culture–creativity–innovation triad in the handicraft industry using an interpretive approach," Journal of Business Research, Elsevier, vol. 156(C).
    6. A. Lasagni, 2011. "European SMEs, external relationships and innovation: some empirical evidence," Economics Department Working Papers 2011-EP04, Department of Economics, Parma University (Italy).
    7. Caloghirou, Yannis & Giotopoulos, Ioannis & Kontolaimou, Alexandra & Korra, Efthymia & Tsakanikas, Aggelos, 2021. "Industry-university knowledge flows and product innovation: How do knowledge stocks and crisis matter?," Research Policy, Elsevier, vol. 50(3).
    8. Ari Jantunen & Kaisu Puumalainen & Sami Saarenketo & Kalevi Kyläheiko, 2005. "Entrepreneurial Orientation, Dynamic Capabilities and International Performance," Journal of International Entrepreneurship, Springer, vol. 3(3), pages 223-243, September.
    9. Eom, Boo-Young & Lee, Keun, 2010. "Determinants of industry-academy linkages and, their impact on firm performance: The case of Korea as a latecomer in knowledge industrialization," Research Policy, Elsevier, vol. 39(5), pages 625-639, June.
    10. Marlenne G. Velazquez-Cazares & Anna M. Gil-Lafuente & Ernesto Leon-Castro & Fabio Blanco-Mesa, 2021. "Innovation capabilities measurement using fuzzy methodologies: a Colombian SMEs case," Computational and Mathematical Organization Theory, Springer, vol. 27(4), pages 384-413, December.
    11. Hou, Jun & Mohnen, Pierre, 2013. "Complementarity between internal knowledge creation and external knowledge sourcing in developing countries," MERIT Working Papers 2013-010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Edgar R. Ramírez-Solis & Joan Llonch-Andreu & Alberto D. Malpica-Romero, 2022. "Relational capital and strategic orientations as antecedents of innovation: evidence from Mexican SMEs," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-19, December.
    13. Martín-Rojas, Rodrigo & Garrido-Moreno, Aurora & García-Morales, Víctor J., 2020. "Fostering Corporate Entrepreneurship with the use of social media tools," Journal of Business Research, Elsevier, vol. 112(C), pages 396-412.
    14. Quang-Huy Ngo, 2023. "The Impact of Entrepreneurial Orientation on SMEs’ Performance in a Transitional Economy: The Mediating Role of Differentiation Advantages and Innovation Capability," SAGE Open, , vol. 13(4), pages 21582440231, October.
    15. Jose-Luis Hervas-Oliver & Francisca Ripoll-Sempere & Carles Boronat Moll, 2016. "Does management innovation pay-off in SMEs? Empirical evidence for Spanish SMEs," Small Business Economics, Springer, vol. 47(2), pages 507-533, August.
    16. Rõigas, Kärt, 2011. "Linkage between productivity and innovation in different service sectors," Discourses in Social Market Economy 2011-02, OrdnungsPolitisches Portal (OPO).
    17. Hussin J. Hejase & Bassam Hamdar & Ziad Haddad & Mariam Chaaya & Ale J. Hejase & Nouri Beyrouti, 2015. "Corporate Entrepreneurship in Lebanon: An Exploratory Research," Quarterly Journal of Business Studies, Research Academy of Social Sciences, vol. 1(3), pages 94-118.
    18. Justo, Rachida & DeTienne, Dawn R. & Sieger, Philipp, 2015. "Failure or voluntary exit? Reassessing the female underperformance hypothesis," Journal of Business Venturing, Elsevier, vol. 30(6), pages 775-792.
    19. Chang, Yuan-Chieh & Chen, Min-Nan, 2016. "Service regime and innovation clusters: An empirical study from service firms in Taiwan," Research Policy, Elsevier, vol. 45(9), pages 1845-1857.
    20. Emanuele Giovannetti & Claudio Piga, 2023. "The multifaceted nature of cooperation for innovation, ICT and innovative outcomes: evidence from UK Microdata," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(3), pages 639-666, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:abaman:v:19:y:2020:i:5:d:10.1057_s41291-019-00072-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.