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Download fileTechnological innovation, organizational innovation and international performance of SMEs: The moderating role of domestic institutional environment
journal contribution
posted on 2020-08-25, 08:55 authored by Francis Donbesuur, George Oppong Appiagyei Ampong, Diana Owusu-Yirenkyi, Irene ChuDespite the growing research on the performance implications of technological and
organizational innovation, our understanding of how they impact SMEs’ international
performance is limited. Drawing from the dynamic capability and the institutional theories, this
study argues that technological and organizational innovation has a synergistic effect on
international performance and that this effect is contingent on unique domestic institutional
factors. We test this model using structural equation modeling on a sample of 204
internationalized SMEs operating in Ghana. The findings from the analysis show that high
levels of organizational and technological innovation jointly improve SMEs’ international
performance. In addition, the results show that institutional environment specificity and
institutional environment enforceability enhance the complementary effect of organizational
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and technological innovation on the international performance of SMEs. The theoretical and
managerial implications of the findings are discussed.
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