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AN ASSESSMENT OF THE EFFECT OF INNOVATION AS MEDIATOR TO BUSINESS NETWORKING AND PERFORMANCE RELATIONSHIP: EVIDENCE FROM ZIMBABWEAN SMES

Year 2015, Volume: 7 Issue: 2, 1 - 15, 01.12.2015

Abstract

The aim of this study was to improve the understanding of the mediating role of innovation on the business networking and business performance relationship. The study adopted a quantitative approach to gather 154 usable questionnaires from SMEs in Zimbabwe. The results revealed a statistically significant relationship between business networking and performance and also the mediating role that innovation plays between the business networking and performance relationship. The study makes a contribution to the existing literature on management and SME by assessing the mediating role of innovation in the relationship between business networking and business performance in the SME sector of a Sub-Saharan African country

References

  • Armbruster, H, Bikfalvi, A, Kinkel, S, and Lay, G. (2008), “Organizational innovation: the challenge of measuring non-technical innovation in large-scale surveys”, Technovation, vol. 28, no. 10, pp. 644-57.
  • Baldwin, J & Gellatly, G. (2003), Innovation Strategies and Performance in
  • SMEs. Cheltenham, Edward Elgar, UK. Baron, R.M., & Kenny, D.A. (1986). “The moderator -mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations”. J Pers Soc Psychol, Vo. 51No.6, pp. 1173-1182.
  • Beck, T, Demirgüç-Kunt, A, and Levine, R, (2004), “Finance, Inequality and Poverty: Cross-Country Evidence”, World Bank Policy Research Working Paper, , World Bank, Washington D.C.
  • Brass, DJ, Galaskiewicz, J, Greve, HR, and Tsai, W. (2004), “Taking stock of networks and organizations: A multilevel perspective”, Academy of Management Journal, vol. 47, no.6, pp. 795-817.
  • Chapman, M. (2006), ‘Building an innovative organization: consistent business and technology integration’, Strategy and Leadership, vol. 34, no. 4, pp. 32-38
  • Chetty, K, & Stangl, LM. (2010), “Internationalization and innovation in a network relationship context”, European Journal of Marketing, vol. 44, no. 11/12, pp. 1725-1743.
  • Cho, HJ, Pucik, V. (2005), “Relationship between innovativeness, quality, growth, profitability, and market value”, Strategic Management Journal, vol. 26, no. 6, pp. 555-575.
  • Chou, H. (2009), “The effect of market orientation intention and superiority on new product performance”, The Journal of American Academy of Business, vol. , no. 2, pp.93-97.
  • Davis, GF. (2006), “Networks in and around organizations”, In WR Scott, and GF
  • Davis (Eds.), Organizations and organizing: Rational, natural, and open systems perspectives. Prentice Hall, Upper Saddle River, NJ. De Klerk, S and Kroon, J. (2008), “Business networking relationships for business success”, South African Journal of Business Management, vol. 39, no. 2, pp. 25–
  • Ebbers JJ. (2013), Networking Behavior and Contracting Relationships among
  • Entrepreneurs in Business Incubators. Entrepreneurship Theory and Practice. Baylor University. Viewed 17 October 2014, http://onlinelibrary.wiley.com/doi/10.1111/etap.12032/pdf
  • Gronum, S, Verreynne, M, and Kastelle, T. (2012), “The Role of Networks in
  • Small and Medium-Sized Enterprise Innovation and Firm Performance”, Journal of Small Business Management, vol. 50, no. 2, pp. 257–282. Gruber, M, Heinemann, F, Brettel, M and Hungeling, S. (2010), “Configurations of resources and capabilities and their performance implications: An exploratory study on technology ventures”, Strategic Management Journal, Vol. 31, No. 12, pp. 1337-1356.
  • Holmen, E, Pedersen AC and Torvatn, T. (2005), “Building relationships for technological innovation”, Journal of Business Research. Vol. 58, no. 9, pp. 1240
  • International Finance Corporation. (2012), IFC and Small and Medium
  • Enterprises at a glance, view18September2014, http://www.ifc.org/wps/wcm/connect/277d1680486a831abec2fff995bd23db/AM1
  • IFC+IssueBrief_SME.pdf?MOD=AJPERES Indarti, N and Langenberg, M. (2004), “Factors affecting business success among
  • SMEs: Empirical evidences from Indonesia”. Viewed 20 October 2014, http://www.utwente.nl/niks/achief/research/conference/esu/papers/indartilagenber g.pdf
  • Jiménez-Jiménez, D and Sanz-Valle, R. (2011), “Innovation, organizational learning, and performance”, Journal of Business Research, Vol. 64, No. 4, pp. –417.
  • Kay, F. (2004), Brilliant business connections: How powerful networking can transform you and your company’s performance. How to Books, Oxford.
  • Lin, C.Y.Y and Zhang, J. (2005), Changing structures of SME networks: lessons from the publishing industry in Taiwan. Long Range Planning Vol.38, pp. 145–
  • Man TWY, Lau, T, and Chan, KF. (2002), “The competitiveness of small and medium enterprises: A conceptualisation with focus on entrepreneurial competencies”, Journal of Business Venturing, Vol. 17, pp.123-142.
  • Mbizi, Hove, Thondhlana, and Kakava. (2013), “Innovation in SMEs: A review of its role to organisational performance and SMEs operations sustainability”,
  • Institute of Interdisciplinary Business Research, Vol. 4, no. 11 Organization for Economic Co-operation and Development. (2005), Oslo Manual:
  • Proposed Guidelines for Collecting and Interpreting Technological Innovation data, 3rd edn, European Commission, Paris. Ojasalo, J. (2008), “Management of Innovation Networks-A Case Study of
  • Different Approaches”, European Journal of Innovation Management, Vol. 11, No. 1, pp. 51-86. Polder, M, Leeuwen, GV, Mohnen, P, and Raymond, W. (2010), “Product, process and organizational innovation: drivers, complementarity and productivity effects”, Maastricht: UNU-MERIT (Working Paper Series, 2010-035).
  • Provan, KG, Fish, A and Sydow, J. (2007), “Inter-organizational networks at the network level: a review of the empirical literature on whole networks”, Journal of
  • Management, Vol. 33, No. 3, pp. 479-516. Shergill, G, and Nargundkar, R. (2005), “Market orientation, marketing innovation as performance drivers: extending the paradigm”, Journal of Global Marketing, Vol. 19, No. 1, pp.27-44.
  • Song, M, Droge, C, Hanvanich, S, and Calantone, R. (2005), “Marketing and technology resource complementarity: An analysis of their interaction effect in two environmental contexts”, Strategic Management Journal, Vol. 26, No. 3, pp.259-276.
  • Verhees, FJHM and Meulenberg, M.T.G. (2004), “Market orientation, innovativeness, product innovation, and performance in small firms”, Journal of
  • Small Business Management, Vol. 42, No. 2, pp. 134–154. Wall, TD, Michie, J, Patterson, M, Wood, SJ, Sheehan, M, Clegg, CW and West, M (2004), “On the validity of subjective measures of company performance”,
  • Personnel Psychology, Vol. 57, No. 1, pp. 95-118. Wickham, PA. (2004), Strategic entrepreneurship, 3rd edn, Pearson Education Limited, Essex, UK.
  • Yeung, R. (2006). The rules of networking, Cyan Communications, London.
  • Zhou, L, Wu, W, and Luo, X. (2007), “Internationalization and the Performance of Born Global SMEs: The Mediating Role of Social Networks”, Journal of
  • International Business Studies, Vol. 38, No. 4, pp. 673–690.
Year 2015, Volume: 7 Issue: 2, 1 - 15, 01.12.2015

Abstract

References

  • Armbruster, H, Bikfalvi, A, Kinkel, S, and Lay, G. (2008), “Organizational innovation: the challenge of measuring non-technical innovation in large-scale surveys”, Technovation, vol. 28, no. 10, pp. 644-57.
  • Baldwin, J & Gellatly, G. (2003), Innovation Strategies and Performance in
  • SMEs. Cheltenham, Edward Elgar, UK. Baron, R.M., & Kenny, D.A. (1986). “The moderator -mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations”. J Pers Soc Psychol, Vo. 51No.6, pp. 1173-1182.
  • Beck, T, Demirgüç-Kunt, A, and Levine, R, (2004), “Finance, Inequality and Poverty: Cross-Country Evidence”, World Bank Policy Research Working Paper, , World Bank, Washington D.C.
  • Brass, DJ, Galaskiewicz, J, Greve, HR, and Tsai, W. (2004), “Taking stock of networks and organizations: A multilevel perspective”, Academy of Management Journal, vol. 47, no.6, pp. 795-817.
  • Chapman, M. (2006), ‘Building an innovative organization: consistent business and technology integration’, Strategy and Leadership, vol. 34, no. 4, pp. 32-38
  • Chetty, K, & Stangl, LM. (2010), “Internationalization and innovation in a network relationship context”, European Journal of Marketing, vol. 44, no. 11/12, pp. 1725-1743.
  • Cho, HJ, Pucik, V. (2005), “Relationship between innovativeness, quality, growth, profitability, and market value”, Strategic Management Journal, vol. 26, no. 6, pp. 555-575.
  • Chou, H. (2009), “The effect of market orientation intention and superiority on new product performance”, The Journal of American Academy of Business, vol. , no. 2, pp.93-97.
  • Davis, GF. (2006), “Networks in and around organizations”, In WR Scott, and GF
  • Davis (Eds.), Organizations and organizing: Rational, natural, and open systems perspectives. Prentice Hall, Upper Saddle River, NJ. De Klerk, S and Kroon, J. (2008), “Business networking relationships for business success”, South African Journal of Business Management, vol. 39, no. 2, pp. 25–
  • Ebbers JJ. (2013), Networking Behavior and Contracting Relationships among
  • Entrepreneurs in Business Incubators. Entrepreneurship Theory and Practice. Baylor University. Viewed 17 October 2014, http://onlinelibrary.wiley.com/doi/10.1111/etap.12032/pdf
  • Gronum, S, Verreynne, M, and Kastelle, T. (2012), “The Role of Networks in
  • Small and Medium-Sized Enterprise Innovation and Firm Performance”, Journal of Small Business Management, vol. 50, no. 2, pp. 257–282. Gruber, M, Heinemann, F, Brettel, M and Hungeling, S. (2010), “Configurations of resources and capabilities and their performance implications: An exploratory study on technology ventures”, Strategic Management Journal, Vol. 31, No. 12, pp. 1337-1356.
  • Holmen, E, Pedersen AC and Torvatn, T. (2005), “Building relationships for technological innovation”, Journal of Business Research. Vol. 58, no. 9, pp. 1240
  • International Finance Corporation. (2012), IFC and Small and Medium
  • Enterprises at a glance, view18September2014, http://www.ifc.org/wps/wcm/connect/277d1680486a831abec2fff995bd23db/AM1
  • IFC+IssueBrief_SME.pdf?MOD=AJPERES Indarti, N and Langenberg, M. (2004), “Factors affecting business success among
  • SMEs: Empirical evidences from Indonesia”. Viewed 20 October 2014, http://www.utwente.nl/niks/achief/research/conference/esu/papers/indartilagenber g.pdf
  • Jiménez-Jiménez, D and Sanz-Valle, R. (2011), “Innovation, organizational learning, and performance”, Journal of Business Research, Vol. 64, No. 4, pp. –417.
  • Kay, F. (2004), Brilliant business connections: How powerful networking can transform you and your company’s performance. How to Books, Oxford.
  • Lin, C.Y.Y and Zhang, J. (2005), Changing structures of SME networks: lessons from the publishing industry in Taiwan. Long Range Planning Vol.38, pp. 145–
  • Man TWY, Lau, T, and Chan, KF. (2002), “The competitiveness of small and medium enterprises: A conceptualisation with focus on entrepreneurial competencies”, Journal of Business Venturing, Vol. 17, pp.123-142.
  • Mbizi, Hove, Thondhlana, and Kakava. (2013), “Innovation in SMEs: A review of its role to organisational performance and SMEs operations sustainability”,
  • Institute of Interdisciplinary Business Research, Vol. 4, no. 11 Organization for Economic Co-operation and Development. (2005), Oslo Manual:
  • Proposed Guidelines for Collecting and Interpreting Technological Innovation data, 3rd edn, European Commission, Paris. Ojasalo, J. (2008), “Management of Innovation Networks-A Case Study of
  • Different Approaches”, European Journal of Innovation Management, Vol. 11, No. 1, pp. 51-86. Polder, M, Leeuwen, GV, Mohnen, P, and Raymond, W. (2010), “Product, process and organizational innovation: drivers, complementarity and productivity effects”, Maastricht: UNU-MERIT (Working Paper Series, 2010-035).
  • Provan, KG, Fish, A and Sydow, J. (2007), “Inter-organizational networks at the network level: a review of the empirical literature on whole networks”, Journal of
  • Management, Vol. 33, No. 3, pp. 479-516. Shergill, G, and Nargundkar, R. (2005), “Market orientation, marketing innovation as performance drivers: extending the paradigm”, Journal of Global Marketing, Vol. 19, No. 1, pp.27-44.
  • Song, M, Droge, C, Hanvanich, S, and Calantone, R. (2005), “Marketing and technology resource complementarity: An analysis of their interaction effect in two environmental contexts”, Strategic Management Journal, Vol. 26, No. 3, pp.259-276.
  • Verhees, FJHM and Meulenberg, M.T.G. (2004), “Market orientation, innovativeness, product innovation, and performance in small firms”, Journal of
  • Small Business Management, Vol. 42, No. 2, pp. 134–154. Wall, TD, Michie, J, Patterson, M, Wood, SJ, Sheehan, M, Clegg, CW and West, M (2004), “On the validity of subjective measures of company performance”,
  • Personnel Psychology, Vol. 57, No. 1, pp. 95-118. Wickham, PA. (2004), Strategic entrepreneurship, 3rd edn, Pearson Education Limited, Essex, UK.
  • Yeung, R. (2006). The rules of networking, Cyan Communications, London.
  • Zhou, L, Wu, W, and Luo, X. (2007), “Internationalization and the Performance of Born Global SMEs: The Mediating Role of Social Networks”, Journal of
  • International Business Studies, Vol. 38, No. 4, pp. 673–690.
There are 37 citations in total.

Details

Other ID JA79YA59EJ
Journal Section Articles
Authors

İgnatius Mpando This is me

Maxwell Sandada This is me

Publication Date December 1, 2015
Published in Issue Year 2015 Volume: 7 Issue: 2

Cite

APA Mpando, İ., & Sandada, M. (2015). AN ASSESSMENT OF THE EFFECT OF INNOVATION AS MEDIATOR TO BUSINESS NETWORKING AND PERFORMANCE RELATIONSHIP: EVIDENCE FROM ZIMBABWEAN SMES. International Journal of Social Sciences and Humanity Studies, 7(2), 1-15.
AMA Mpando İ, Sandada M. AN ASSESSMENT OF THE EFFECT OF INNOVATION AS MEDIATOR TO BUSINESS NETWORKING AND PERFORMANCE RELATIONSHIP: EVIDENCE FROM ZIMBABWEAN SMES. IJ-SSHS. December 2015;7(2):1-15.
Chicago Mpando, İgnatius, and Maxwell Sandada. “AN ASSESSMENT OF THE EFFECT OF INNOVATION AS MEDIATOR TO BUSINESS NETWORKING AND PERFORMANCE RELATIONSHIP: EVIDENCE FROM ZIMBABWEAN SMES”. International Journal of Social Sciences and Humanity Studies 7, no. 2 (December 2015): 1-15.
EndNote Mpando İ, Sandada M (December 1, 2015) AN ASSESSMENT OF THE EFFECT OF INNOVATION AS MEDIATOR TO BUSINESS NETWORKING AND PERFORMANCE RELATIONSHIP: EVIDENCE FROM ZIMBABWEAN SMES. International Journal of Social Sciences and Humanity Studies 7 2 1–15.
IEEE İ. Mpando and M. Sandada, “AN ASSESSMENT OF THE EFFECT OF INNOVATION AS MEDIATOR TO BUSINESS NETWORKING AND PERFORMANCE RELATIONSHIP: EVIDENCE FROM ZIMBABWEAN SMES”, IJ-SSHS, vol. 7, no. 2, pp. 1–15, 2015.
ISNAD Mpando, İgnatius - Sandada, Maxwell. “AN ASSESSMENT OF THE EFFECT OF INNOVATION AS MEDIATOR TO BUSINESS NETWORKING AND PERFORMANCE RELATIONSHIP: EVIDENCE FROM ZIMBABWEAN SMES”. International Journal of Social Sciences and Humanity Studies 7/2 (December 2015), 1-15.
JAMA Mpando İ, Sandada M. AN ASSESSMENT OF THE EFFECT OF INNOVATION AS MEDIATOR TO BUSINESS NETWORKING AND PERFORMANCE RELATIONSHIP: EVIDENCE FROM ZIMBABWEAN SMES. IJ-SSHS. 2015;7:1–15.
MLA Mpando, İgnatius and Maxwell Sandada. “AN ASSESSMENT OF THE EFFECT OF INNOVATION AS MEDIATOR TO BUSINESS NETWORKING AND PERFORMANCE RELATIONSHIP: EVIDENCE FROM ZIMBABWEAN SMES”. International Journal of Social Sciences and Humanity Studies, vol. 7, no. 2, 2015, pp. 1-15.
Vancouver Mpando İ, Sandada M. AN ASSESSMENT OF THE EFFECT OF INNOVATION AS MEDIATOR TO BUSINESS NETWORKING AND PERFORMANCE RELATIONSHIP: EVIDENCE FROM ZIMBABWEAN SMES. IJ-SSHS. 2015;7(2):1-15.