The Dynamic Roles of Government, Higher Education, Large Enterprises, and Communities in SME Collaboration: Mediating Effect of Knowledge and Innovation Exchange

Article Sidebar

PDF
DOI: https://doi.org/10.28924/2291-8639-23-2025-42
Published: Feb 14, 2025
Cite as:
Sunday Noya, Armanu Thoyib, Risna Wijayanti, Ananda Sabil Hussein, The Dynamic Roles of Government, Higher Education, Large Enterprises, and Communities in SME Collaboration: Mediating Effect of Knowledge and Innovation Exchange, Int. J. Anal. Appl., 23 (2025), 42.

Main Article Content

Sunday Noya, Armanu Thoyib, Risna Wijayanti, Ananda Sabil Hussein

Abstract

This study examines the impact of SMEs' multidimensional strategic collaboration with government agencies, higher education institutions, large enterprises, and SME communities on performance, with inter-organizational knowledge exchange and innovation as mediating factors. Utilizing data from 411 managers of food and beverage SMEs in the Greater Malang Area, Indonesia, the research employs structural equation modelling through WarpPLS to assess the relationships among four key constructs: SME multidimensional strategic collaboration, inter-SME knowledge exchange, inter-SME innovation, and SME performance. The findings reveal that collaboration with government entities has the most significant direct and mediated effects on performance, while partnerships with universities and large enterprises produce more conditional results, depending on the SMEs' capacity to absorb and apply external knowledge and innovations. Additionally, collaboration with SME communities has a meaningful impact on knowledge exchange, which partially mediates performance outcomes, highlighting the value of peer-to-peer learning and shared experiences within SME networks.

Article Details

References

  1. European Commission, Annual Report on European SMEs 2021/2022: SMEs and Environmental Sustainability, Publications Office, LU, 2022. https://data.europa.eu/doi/10.2826/50999.
  2. OECD, Promoting the Productivity of SMEs in ASEAN Countries: Strengthening Capabilities, Enabling Business Dynamics, 2021. https://web-archive.oecd.org/2021-04-15/585018-promoting-productivity-of-SMEs-in-ASEAN-countries.pdf.
  3. M. Saunila, Performance Measurement Approach for Innovation Capability in SMEs, Int. J. Prod. Perform. Manag. 65 (2016), 162–176. https://doi.org/10.1108/IJPPM-08-2014-0123.
  4. J. Pfeffer, A Resource Dependence Perspective on Intercorporate Relations, in: M.S. Mizruchi, M. Schwartz (Eds.), Intercorporate Relations, 1st ed., Cambridge University Press, 1988: pp. 25–55. https://doi.org/10.1017/CBO9780511570841.002.
  5. J.R. Brown, R.F. Lusch, C.Y. Nicholson, Power and Relationship Commitment: Their Impact on Marketing Channel Member Performance, J. Retail. 71 (1995), 363–392. https://doi.org/10.1016/0022-4359(95)90019-5.
  6. D. Norris-Tirrell, J.A. Clay, Strategic Collaboration in Public and Nonprofit Administration: A Practice-Based Approach to Solving Shared Problems, CRC Press, 2016. https://doi.org/10.4324/9781315087658.
  7. D. Ribeiro-Soriano, Small Business and Entrepreneurship: Their Role in Economic and Social Development, Entrep. Reg. Dev. 29 (2017), 1–3. https://doi.org/10.1080/08985626.2016.1255438.
  8. N. Classen, A. Van Gils, Y. Bammens, M. Carree, Accessing Resources from Innovation Partners: The Search Breadth of Family SMEs, J. Small Bus. Manag. 50 (2012), 191–215. https://doi.org/10.1111/j.1540-627X.2012.00350.x.
  9. S. Gronum, M.-L. Verreynne, T. Kastelle, The Role of Networks in Small and Medium-Sized Enterprise Innovation and Firm Performance, J. Small Bus. Manag. 50 (2012), 257–282. https://doi.org/10.1111/j.1540-627X.2012.00353.x.
  10. S. Noya, S.Y.M. Taneo, M. Melany, Triple Helix Innovation Ecosystem: The Role of Small and Medium Enterprises Community in Enhancing Performance, Qual. Innov. Prosper. 27 (2023), 46–61. https://doi.org/10.12776/qip.v27i1.1759.
  11. J.H. Love, S. Roper, P. Vahter, Learning from Openness: The Dynamics of Breadth in External Innovation Linkages, Strat. Manag. J. 35 (2014), 1703–1716. https://doi.org/10.1002/smj.2170.
  12. P. Vrgovic, P. Vidicki, B. Glassman, A. Walton, Open Innovation for SMEs in Developing Countries – An Intermediated Communication Network Model for Collaboration beyond Obstacles, Innovation 14 (2012), 290–302. https://doi.org/10.5172/impp.2012.14.3.290.
  13. K. Nakwa, G. Zawdie, P. Intarakumnerd, Role of Intermediaries in Accelerating the Transformation of Inter-Firm Networks into Triple Helix Networks: A Case Study of SME-Based Industries in Thailand, Procedia – Soc. Behav. Sci. 52 (2012), 52–61. https://doi.org/10.1016/j.sbspro.2012.09.441.
  14. M. McAdam, K. Debackere, Beyond ‘Triple Helix’ toward ‘Quadruple Helix’ Models in Regional Innovation Systems: Implications for Theory and Practice, R&D Manag. 48 (2018), 3–6. https://doi.org/10.1111/radm.12309.
  15. R. Padilla-Pérez, Y. Gaudin, Science, Technology and Innovation Policies in Small and Developing Economies: The Case of Central America, Res. Policy 43 (2014), 749–759. https://doi.org/10.1016/j.respol.2013.10.011.
  16. I. Liefner, S. Hennemann, L. Xin, Cooperation in the Innovation Process in Developing Countries: Empirical Evidence from Zhongguancun, Beijing, Environ. Plan. A 38 (2006), 111–130. https://doi.org/10.1068/a37343.
  17. H. Lundberg, C. Öberg, Teachers, Researchers, but Not Innovators? Rethinking University-Industry Collaboration, J. Bus. Ind. Mark. 36 (2021), 161–173. https://doi.org/10.1108/JBIM-03-2020-0126.
  18. S. Cristo-Andrade, M.J. Franco, Cooperation as a Vehicle for Innovation: A Study of the Effects of Firm Size and Industry Type, Eur. J. Innov. Manag. 23 (2020), 329-347. https://doi.org/10.1108/EJIM-08-2018-0182.
  19. N. Caseiro, A. Coelho, The Influence of Business Intelligence Capacity, Network Learning and Innovativeness on Startups Performance, J. Innov. Knowl. 4 (2019), 139-145. https://doi.org/10.1016/j.jik.2018.03.009.
  20. M. Tortoriello, B. McEvily, D. Krackhardt, Being a Catalyst of Innovation: The Role of Knowledge Diversity and Network Closure, Organ. Sci. 26 (2015) 423-438. https://doi.org/10.1287/orsc.2014.0942.
  21. L. Cricelli, M. Grimaldi, S. Vermicelli, Crowdsourcing and Open Innovation: A Systematic Literature Review, an Integrated Framework and a Research Agenda, Rev. Manag. Sci. 16 (2022), 1269-1310. https://doi.org/10.1007/s11846-021-00482-9.
  22. P. Pollok, D. Lüttgens, F.T. Piller, How Firms Develop Capabilities for Crowdsourcing to Increase Open Innovation Performance: The Interplay Between Organizational Roles and Knowledge Processes, J. Prod. Innov. Manag. 36 (2019), 412-441. https://doi.org/10.1111/jpim.12485.
  23. H.W. Chesbrough, Open Innovation: The New Imperative for Creating and Profiting from Technology, Harvard Business Press, 2003.
  24. A. Dossou-Yovo, C. Keen, SMEs and the Innovation Management Process: A Multi-Level Process Conceptual Framework, Technol. Innov. Manag. Rev. 11 (2021), 22-33. https://doi.org/10.22215/timreview/1414.
  25. N. Fukugawa, Determining Factors in Innovation of Small Firm Networks: A Case of Cross Industry Groups in Japan, Small Bus. Econ. 27 (2006), 181-193. https://doi.org/10.1007/s11187-006-0010-2.
  26. A. Sengupta, V. Sena, Impact of Open Innovation on Industries and Firms-A Dynamic Complex Systems View, Technol. Forecast. Soc. Change, 159 (2020), 120199. https://doi.org/10.1016/j.techfore.2020.120199.
  27. Y.C. Kim, M. Rhee, Professional Collaboration in Technological Innovation: A Case of Technology Licensing of University Inventions, Technol. Anal. Strat. Manag. 30 (2018), 1351-1363. https://doi.org/10.1080/09537325.2017.1340639.
  28. T. Brink, S.O. Madsen, The Triple Helix Frame for Small and Medium-Sized Enterprises for Innovation and Development of Offshore Wind Energy, Triple Helix, 3 (2016), 1. https://doi.org/10.1186/s40604-015-0031-4.
  29. N. Yokakul, G. Zawdie, The Knowledge Sphere, Social Capital and Growth of Indigenous Knowledge-Based SMEs in the Thai Dessert Industry, Sci. Public Policy, 38 (2011), 19e29. https://doi.org/10.3152/030234211X12834251302481.
  30. D. Meng, X. Li, K. Rong, Industry-to-University Knowledge Transfer in Ecosystem-Based Academic Entrepreneurship: Case Study of Automotive Dynamics & Control Group in Tsinghua University, Technol. Forecast. Soc. Change, 141 (2019), 249-262. https://doi.org/10.1016/j.techfore.2018.10.005.
  31. S.X. Zeng, X.M. Xie, C.M. Tam, Relationship Between Cooperation Networks and Innovation Performance of SMEs, Technovation, 30 (2010), 181-194. https://doi.org/10.1016/j.technovation.2009.08.003.
  32. M. Guerrero, D. Urbano, The Impact of Triple Helix Agents on Entrepreneurial Innovations' Performance: An Inside Look at Enterprises Located in an Emerging Economy, Technol. Forecast. Soc. Change, 119 (2017), 294-309. https://doi.org/10.1016/j.techfore.2016.06.015.
  33. P. Ueasangkomsate, A. Jangkot, Enhancing the Innovation of Small and Medium Enterprises in Food Manufacturing Through Triple Helix Agents, Kasetsart J. Soc. Sci., 40 (2019), 380-388. https://doi.org/10.1016/j.kjss.2017.12.007.
  34. A. Kallmuenzer, U. Scholl-Grissemann, Disentangling Antecedents and Performance Effects of Family SME Innovation: A Knowledge-Based Perspective, Int. Entrep. Manag. J., 13 (2017), 1117-1138. https://doi.org/10.1007/s11365-017-0443-x.
  35. K.N. Kang, H. Park, Influence of Government R&D Support and Inter-Firm Collaborations on Innovation in Korean Biotechnology SMEs, Technovation, 32 (2012), 68-78. https://doi.org/10.1016/j.technovation.2011.08.004.
  36. A. Scupola, Government Intervention in SMEs E-Commerce Adoption, in Encyclopedia of Information Science and Technology, Second Edition, IGI Global, 2009, pp. 1689-1695. https://doi.org/10.4018/978-1-60566-026-4.ch266.
  37. Nonaka, H. Takeuchi, The Knowledge-Creating Company, Oxford Univ. Press, New York, NY, 1995. https://doi.org/10.1093/oso/9780195092691.001.0001.
  38. A. Battistella, A.F. De Toni, R. Pillon, Inter-Organizational Technology/Knowledge Transfer: A Framework from Critical Literature Review, J. Technol. Transf., 41 (2016), 1195-1234. https://doi.org/10.1007/s10961-015-9418-7.
  39. M. Easterby‐Smith, M.A. Lyles, E.W. Tsang, Inter-Organizational Knowledge Transfer: Current Themes and Prospects, J. Manag. Stud. 45 (2008), 677-690. https://doi.org/10.1111/j.1467-6486.2008.00773.x.
  40. D. Chiaroni, V. Chiesa, F. Frattini, Unravelling the Process from Closed to Open Innovation: Evidence From Mature, Asset‐Intensive Industries, R&D Manag. 40 (2010), 222-245. https://doi.org/10.1111/j.1467-9310.2010.00589.x
  41. R. Cerchione, E. Esposito, M.R. Spadaro, A Literature Review on Knowledge Management in SMEs, Knowl. Manag. Res. Pract. 14 (2016), 169-177. https://doi.org/10.1057/kmrp.2015.12.
  42. A. Ioanid, D.C. Deselnicu, G. Militaru, The Impact of Social Networks on SMEs' Innovation Potential, Procedia Manuf., 22 (2018), 936-941. https://doi.org/10.1016/j.promfg.2018.03.133.
  43. A. Kaya, A. M. Abubakar, E. Behravesh, H. Yildiz, I. S. Mert, Antecedents of Innovative Performance: Findings from PLS-SEM and Fuzzy Sets (fsQCA), J. Bus. Res. 114 (2020), 278-289. https://doi.org/10.1016/j.jbusres.2020.04.016.
  44. E.M. Vătămănescu, A.G. Andrei, L. Nicolescu, et al. The Influence of Competitiveness on SMEs Internationalization Effectiveness. Online Versus Offline Business Networking, Inf. Syst. Manag. 34 (2017), 205–219. https://doi.org/10.1080/10580530.2017.1329997.
  45. J.L. Ferreras-Méndez, A. Fernández-Mesa, J. Alegre, Export performance in SMEs: The Importance of External Knowledge Search Strategies and Absorptive Capacity, Manag. Int. Rev. 59 (2019), 413-437. https://doi.org/10.1007/s11575-019-00379-6.
  46. S. Najafi-Tavani, Z. Najafi-Tavani, P. Naudé, et al. How Collaborative Innovation Networks Affect New Product Performance: Product Innovation Capability, Process Innovation Capability, and Absorptive Capacity, Ind. Mark. Manag. 73 (2018), 193-205. https://doi.org/10.1016/j.indmarman.2018.02.009.
  47. M. Martínez-Costa, D. Jiménez-Jiménez, H.A. Dine Rabeh, The Effect of Organizational Learning on Interorganizational Collaborations in Innovation: An Empirical Study in SMEs, Knowl. Manag. Res. Pract., 17 (2019), 137-150. https://doi.org/10.1080/14778238.2018.1538601.
  48. N. Kim, C. Shim, Social Capital, Knowledge Sharing and Innovation of Small and Medium-Sized Enterprises in a Tourism Cluster, Int. J. Contemp. Hosp. Manag., 30 (2018), 2417-2437. https://doi.org/10.1108/IJCHM-09-2016-0516.
  49. A.H. Ozgun, M. Tarim, D. Delen, S. Zaim, Social Capital and Organizational Performance: The Mediating Role of Innovation Activities and Intellectual Capital, Healthc. Anal. 2 (2022), 100046. https://doi.org/10.1016/j.health.2022.100046.
  50. F.S. Tsai, S. Cabrilo, H.H. Chou, F. Hu, A.D. Tang, Open Innovation and SME Performance: The Roles of Reverse Knowledge Sharing and Stakeholder Relationships, J. Bus. Res. 148 (2022), 433-443. https://doi.org/10.1016/j.jbusres.2022.03.051.
  51. T. Keszey, Boundary Spanners' Knowledge Sharing for Innovation Success in Turbulent Times, J. Knowl. Manag. 22 (2018), 1061-1081. https://doi.org/10.1108/JKM-01-2017-0033.
  52. C.N.L. Tan, T. Ramayah, Exploring the Individual, Social and Organizational Predictors of Knowledge-Sharing Behaviours among Communities of Practice of SMEs in Malaysia, J. Syst. Inf. Technol., 20 (2018), 375-399. https://doi.org/10.1108/JSIT-09-2017-0071.
  53. O. Carrasco-Carvajal, M. Castillo-Vergara, D. García-Pérez-de-Lema, Measuring Open Innovation in SMEs: An Overview of Current Research, Rev. Manag. Sci. 17 (2023), 397-442. https://doi.org/10.1007/s11846-022-00533-9.
  54. A. Alexiev, H.W. Volberda, F.A. Van den Bosch, Interorganizational Collaboration and Firm Innovativeness: Unpacking the Role of the Organizational Environment, J. Bus. Res. 69 (2016), 974-984. https://doi.org/10.1016/j.jbusres.2015.09.002.
  55. J.M. Ahn, T. Minshall, L. Mortara, Understanding the Human Side of Openness: The Fit Between Open Innovation Modes and CEO Characteristics, R&D Manag. 47 (2017), 727-740. https://doi.org/10.1111/radm.12264.
  56. C.H. Wang, C.H. Chang, G.C. Shen, The Effect of Inbound Open Innovation on Firm Performance: Evidence from High-Tech Industry, Technol. Forecast. Soc. Chang. 99 (2015), 222-230. https://doi.org/10.1016/j.techfore.2015.06.019.
  57. C.G. de Zubielqui, J. Jones, P.S. Seet, N. Lindsay, Knowledge Transfer Between Actors in the Innovation System: A Study of Higher Education Institutions (HEIS) and SMEs, J. Bus. Ind. Mark. 30 (2015), 436-458. https://doi.org/10.1108/JBIM-07-2013-0152.
  58. M. Franco, H. Haase, A. Pereira, Empirical Study about the Role of Social Networks in SME Performance, J. Syst. Inf. Technol. 18 (2016), 383-403. https://doi.org/10.1108/JSIT-06-2016-0036.
  59. S.M. Chege, D. Wang, The Influence of Technology Innovation on SME Performance Through Environmental Sustainability Practices in Kenya, Technol. Soc. 60 (2020), 101210. https://doi.org/10.1016/j.techsoc.2019.101210.
  60. J.F. Hair, G.T.M. Hult, C.M. Ringle, M. Sarstedt, A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM), 3rd ed., SAGE, 2022. https://doi.org/10.1007/978-3-030-80519-7.
  61. N. Kock, WarpPLS User Manual: Version 8.0, ScriptWarp Systems, Laredo, TX, USA, 2022. https://scriptwarp.com/warppls/UserManual_v_8_0.pdf.
  62. C. Fornell, D.F. Larcker, Evaluating Structural Equation Models with Unobservable Variables and Measurement Error, J. Mark. Res. 18 (1981), 39-50. https://doi.org/10.1177/002224378101800313.
  63. J.F. Hair, W.C. Black, B.J. Babin, R.E. Anderson, Multivariate Data Analysis: A Global Perspective, Prentice-Hall, New Jersey, 2010.
  64. J.C. Nunnally, I.H. Bernstein, J.M.T. Berge, Psychometric Theory, McGraw-Hill, New York, NY, 1967.
  65. A. H. Van de Ven, P. E. Johnson, Knowledge for Theory and Practice, Acad. Manag. Rev. 31 (2006), 802-821. https://doi.org/10.5465/amr.2006.22527385.
  66. W.M. Cohen, D.A. Levinthal, Absorptive Capacity: A New Perspective on Learning and Innovation, Adm. Sci. Q. 35 (1990), 128-152. https://doi.org/10.2307/2393553.
  67. N. Carvalho, I. Gomes, Knowledge Sharing between Enterprises of the Same Group, in: I.R. Management Association (Ed.), Information Diffusion Management and Knowledge Sharing, IGI Global, 2020: pp. 403–423. https://doi.org/10.4018/978-1-7998-0417-8.ch020.