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The Role of Organisational Capabilities in the Relationship Between Entrepreneurship and Technological Innovation in SMEs

In: The Finance-Innovation Nexus: Implications for Socio-Economic Development

Author

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  • Su-Jung Hwang
  • Jae-Hyeok Choi

Abstract

Technological innovation is crucial for businesses to achieve development and profitability through enhancing core capabilities and differentiating competitive advantages. The key to organisational survival is boosting innovation performance focused on technological innovation, as SMEs lack resources and competencies compared to large companies. Entrepreneurship is a topic of active research to overcome SMEs’ resource and size limits. This is because entrepreneurs’ capabilities are considered more important in small and medium-sized enterprises closely related to corporate success than in large enterprises that can receive organisational support. In addition, a company’s holding capacity is a direct driver of creating differentiated competitiveness because it can pursue product differentiation through high levels of market capabilities and technology capabilities. Therefore, this study attempts to demonstrate entrepreneurship and technological innovation for SMEs. Reviewing previous studies, the authors derive the organisational capabilities needed by the organisation for innovation and examine how these organisational capabilities (technological, market, and operational capabilities) relate to entrepreneurship and technological innovation.

Suggested Citation

  • Su-Jung Hwang & Jae-Hyeok Choi, 2024. "The Role of Organisational Capabilities in the Relationship Between Entrepreneurship and Technological Innovation in SMEs," International Symposia in Economic Theory and Econometrics, in: The Finance-Innovation Nexus: Implications for Socio-Economic Development, volume 34, pages 237-254, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:isetez:s1571-038620240000034020
    DOI: 10.1108/S1571-038620240000034020
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