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Two-Way Business Innovation in Central Eastern Europe: Analysing Innovative Enterprises Using the PLS-SEM Method

In: State of the Art in Partial Least Squares Structural Equation Modeling (PLS-SEM)

Author

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  • Márton Gosztonyi

    (Universiti Malaya, Asia-Europe Institute)

Abstract

In our paper we examine what factors are needed for the emergence of business innovation in the context Central Eastern Europe countries (CEE) and which innovation theory can capture the innovations on the market. We compare the entrepreneurial side based classical Schumpeterian theory and the enterprises’ productive-side effects theory and incorporate them with the model of socioeconomic macro-context effects. Our research is based on representative data from the Global Entrepreneurship Monitor 2021, and our models are tested and analysed using partial least squares-structural equation (PLS-SEM) modelling. The results show business innovation require a three-sided impact (entrepreneur–enterprise–environment) in CEE market; however, the main causal chain that leads to the creation of the innovation differs from country to country. The Hungarian and Polish examples show that both theoretical directions can be found simultaneously on the CEE market, thus countries may follow diametrically different causal chains during the development of their business innovation.

Suggested Citation

  • Márton Gosztonyi, 2023. "Two-Way Business Innovation in Central Eastern Europe: Analysing Innovative Enterprises Using the PLS-SEM Method," Springer Proceedings in Business and Economics, in: Lăcrămioara Radomir & Raluca Ciornea & Huiwen Wang & Yide Liu & Christian M. Ringle & Marko Sarstedt (ed.), State of the Art in Partial Least Squares Structural Equation Modeling (PLS-SEM), pages 139-160, Springer.
    • Handle: RePEc:spr:prbchp:978-3-031-34589-0_17
    DOI: 10.1007/978-3-031-34589-0_17
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