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Sustaining innovation during downsizing strategy through knowledge coupling, business process digitization, and market capitalizing agility

Author

Listed:
  • Sayed Muhammad Fawad Sharif
  • Naiding Yang

    (School of Management, Northwestern Polytechnical University, Xi’an, P.R. China)

  • Atiq ur Rehman

    (NayaKam, Pakistan)

  • Omar Alghamdi

    (Business Administration Department, Applied College of Najran University, Najran, Saudi Arabia)

Abstract

COVID-19 has developed chaos and uncertainty for small and medium enterprises (SMEs) causing mass downsizing. Under such uncertainty, innovation is key to survival and agility to growth. This study examines role of knowledge coupling and business process digitization (BPD) in sustaining innovation through market capitalizing agility (MCA) besides downsizing strategy. Data have been collected from top and mid management of Chinese manufacturing SMEs and analyzed with knowledge-based view and self-tuning model through Smart-PLS 4. Knowledge coupling positively contributes to MCA and innovation irrespective of downsizing strategy. Effect of BPD on innovation performance is same; however, insignificant on MCA in no-downsizing sample. Likewise, MCA positively influences innovation performance and positively mediates between knowledge coupling (BPD) and innovation performance only during downsizing. This study is first of its kind to establish mediating effect of MCA between knowledge coupling (BPD) and innovation performance during downsizing phase and offers significant theoretical and practical implications. JEL Classification: J63, O31

Suggested Citation

  • Sayed Muhammad Fawad Sharif & Naiding Yang & Atiq ur Rehman & Omar Alghamdi, 2024. "Sustaining innovation during downsizing strategy through knowledge coupling, business process digitization, and market capitalizing agility," Australian Journal of Management, Australian School of Business, vol. 49(3), pages 428-447, August.
    • Handle: RePEc:sae:ausman:v:49:y:2024:i:3:p:428-447
    DOI: 10.1177/03128962221142435
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    More about this item

    Keywords

    Business process digitization; downsizing; innovation performance; knowledge coupling; market capitalizing agility; SME;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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