Firm strategy and product innovation in SMEs: The mediating role of business networks

Main Article Content

Carlos Melendez-Campos
https://orcid.org/0000-0002-0971-7249
Ronald Mora-Esquivel
https://orcid.org/0000-0002-4315-0418
Juan C. Leiva
https://orcid.org/0000-0001-9653-4629

Abstract

Product innovation is essential for the growth and profitability of SMEs. Existing scientific evidence suggests that firm strategy and participation in business networks could influence this innovation. In turn, participation in networks might influence the configuration and allocation of the organizational resources and capabilities that help
shape firm strategy. Hence, this study analyzes business networks as a mediator variable between firm strategy and product innovation in SMEs. It uses a sample of 205 SMEs from Costa Rica compiled by the Global Competitiveness Project. The proposed mediation is tested using OLS regression equations. The findings show that business networks do indeed play a mediating role in the relationship between firm strategy and product innovation, which has implications for SMEs in terms of the relevance of participating in such networks and also for public policymakers regarding the importance of managing them.

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How to Cite
MELENDEZ-CAMPOS, C.; MORA-ESQUIVEL, R.; LEIVA, J. C. Firm strategy and product innovation in SMEs: The mediating role of business networks. RAE - Revista de Administracao de Empresas , [S. l.], v. 64, n. 1, p. e2022–0386, 2023. DOI: 10.1590/S0034-759020240104. Disponível em: https://periodicos.fgv.br/rae/article/view/90388. Acesso em: 14 apr. 2024.
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