Process innovation in small and medium-sized enterprises: The critical role of external knowledge sourcing and absorptive capacity

Omid Aliasghar*, Arash Sadeghi, Elizabeth Rose

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Although previous studies have contributed substantially to our understanding of the role of external collaboration on product innovation in the context of high-tech industries in developed countries, there has been limited attention to the role of knowledge search on process innovation in small and medium-sized enterprises (SMEs) operating in extreme institutional environments. Drawing on the open innovation and absorptive capacity literatures, two key findings emerge from our study of 124 SMEs operating in the automotive industry. First, we find that external knowledge search breadth, but not depth, is related to the development of process innovation. Second, process innovation is positively related to performance.
Original languageEnglish
JournalJournal of Small Business Management
Early online date6 Dec 2020
DOIs
Publication statusE-pub ahead of print - 6 Dec 2020

Bibliographical note

This is an Accepted Manuscript of an article published by Taylor & Francis Group in Journal of Small Business Management on 6 Dec 2020, available online at: http://www.tandfonline.com/10.1080/00472778.2020.1844491

Keywords

  • Open innovation
  • absorptive capacity
  • attention-based theories
  • process innovation
  • search breadth
  • search depth

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