Title: Factors influencing innovation capability of small and medium-sized enterprises in Korean manufacturing sector: facilitators, barriers and moderators
Authors: Moon-Koo Kim; Jong-Hyun Park; Jong-Hyun Paik
Addresses: Graduate School of Innovation and Technology Management, Korea Advanced Institute of Science and Technology (KAIST), 291 Daehak-ro, Yuseong-gu, Daejeon 34141, South Korea; Electronics and Telecommunications Research Institute (ETRI), 218 Gajeong-ro, Yuseong-gu, Daejeon 34129, South Korea ' Electronics and Telecommunications Research Institute (ETRI), 218 Gajeong-ro, Yuseong-gu, Daejeon 34129, South Korea ' Korean Standards Association (KSA), 305 Teheran-ro, Gangnam-gu, Seoul 13591, South Korea
Abstract: Securing and expanding innovation capability is a critical challenge for the survival and growth of small and medium-sized enterprises (SMEs), as they normally lack internal resources and show limited environmental responsiveness. However, few prior studies focus on the factors influencing the innovation capability of SMEs in terms of facilitators, barriers, and moderators. Using survey data collected from Korean SMEs in the manufacturing sector, we show that innovation capability is a fundamental determinant of firm performance. Top management leadership and external networking serve as facilitators, while organisational rigidity and insufficient resources act as barriers to firm performance, and have a significant impact on innovation capability. This study reveals that commercialisation capabilities serve as moderators between innovation capability and firm performance. The implications and directions for future research are also suggested.
Keywords: innovation; small and medium-sized enterprises; SMEs; innovation capability; firm performance; barriers to innovation; commercialisation capabilities; Korea.
International Journal of Technology Management, 2018 Vol.76 No.3/4, pp.214 - 235
Received: 04 Jul 2015
Accepted: 12 May 2016
Published online: 18 Apr 2018 *