ICT and KM, Drivers of Innovation and Profitability in SMEs

For more than two decades, the literature has shown that information and communication technology (ICT) and knowledge management (KM) are among the best business practices in the development and competitiveness of large corporations. Recently, for small- and medium-sized enterprises (SMEs), these elements have represented a challenge and an opportunity for the consolidation of innovation processes, knowledge protection, and the path to sustained profitability. The aim of this paper is to analyse the effects of ICT on KM and their link with innovation and intellectual property (IP) in order to identify how SMEs can achieve higher yields. The data were obtained from a self-directed survey administered to the managers of 412 industrial and service companies established in Northwestern Mexico. Partial least squares structural equation modelling (PLS-SEM) was used for the statistical analysis of the data. This work contributes to the development of the literature on the strategic management of SMEs, particular...

[1]  Cengiz Kahraman,et al.  Prioritization of human capital measurement indicators using fuzzy AHP , 2007, Expert Syst. Appl..

[2]  D. Consoli Literature Analysis on Determinant Factors and the Impact of ICT in SMEs , 2012 .

[3]  Alex Coad,et al.  Firm Growth: Empirical Analysis , 2010 .

[4]  Boris Durisin,et al.  Absorptive capacity: Valuing a reconceptualization , 2007 .

[5]  Wynne W. Chin,et al.  An Introduction to a Permutation Based Procedure for Multi-Group PLS Analysis: Results of Tests of Differences on Simulated Data and a Cross Cultural Analysis of the Sourcing of Information System Services Between Germany and the USA , 2010 .

[6]  R. Calantone,et al.  Learning orientation, firm innovation capability, and firm performance , 2002 .

[7]  Mary C. Gentile,et al.  Keeping Your Colleagues Honest , 2010 .

[8]  Vincenzo Spiezia,et al.  ARE ICT USERS MORE INNOVATIVE? AN ANALYSIS OF ICT-ENABLED INNOVATION IN OECD FIRMS , 2010 .

[9]  Thomas G. Reio,et al.  The Threat of Common Method Variance Bias to Theory Building , 2010 .

[10]  K. Valkokari,et al.  KNOWLEDGE AND INTELLECTUAL PROPERTY MANAGEMENT IN CUSTOMER–SUPPLIER RELATIONSHIPS , 2010 .

[11]  R. Vandenberg,et al.  A Review and Synthesis of the Measurement Invariance Literature: Suggestions, Practices, and Recommendations for Organizational Research , 2000 .

[12]  Chander K. Velu,et al.  Business model innovation and third-party alliance on the survival of new firms , 2015 .

[13]  N. Anderson,et al.  Innovation and Creativity in Organizations , 2014 .

[14]  Namgyoo K. Park,et al.  Reverse knowledge diffusion: Competitive dynamics and the knowledge seeking behavior of Korean high-tech firms , 2014 .

[15]  J. West,et al.  New frontiers in open innovation , 2014 .

[16]  Patrick Spieth,et al.  BUSINESS MODEL INNOVATION: TOWARDS AN INTEGRATED FUTURE RESEARCH AGENDA , 2013 .

[17]  Rajesh K. Pillania Leadership, knowledge management and sustainable growth: A spiritual dimension , 2013 .

[18]  Geoffrey S. Hubona,et al.  Using PLS path modeling in new technology research: updated guidelines , 2016, Ind. Manag. Data Syst..

[19]  Detmar W. Straub,et al.  Structural Equation Modeling and Regression: Guidelines for Research Practice , 2000, Commun. Assoc. Inf. Syst..

[20]  J. Bourke,et al.  THE ROLE OF HRM AND ICT COMPLEMENTARITIES IN FIRM INNOVATION: EVIDENCE FROM TRANSITION ECONOMIES , 2015 .

[21]  D. Teece Dynamic capabilities and entrepreneurial management in large organizations: Toward a theory of the (entrepreneurial) firm , 2016 .

[22]  Pia Hurmelinna-Laukkanen,et al.  DO SMEs BENEFIT FROM HRM-RELATED KNOWLEDGE PROTECTION IN INNOVATION MANAGEMENT? , 2011 .

[23]  Wynne W. Chin,et al.  Handbook of Partial Least Squares , 2010 .

[24]  Joan Torrent-Sellens,et al.  The competitiveness of small network-firm: A practical tool , 2016 .

[25]  S. Brunswicker,et al.  Open Innovation in Small and Medium‐Sized Enterprises (SMEs): External Knowledge Sourcing Strategies and Internal Organizational Facilitators , 2015 .

[26]  Marko Sarstedt,et al.  Editorial - Partial Least Squares Structural Equation Modeling: Rigorous Applications, Better Results and Higher Acceptance , 2013 .

[27]  E. Gijsbrechts,et al.  Proliferating Private-Label Portfolios: How Introducing Economy and Premium Private Labels Influences Brand Choice , 2010 .

[28]  André Spithoven The effects of R&D staff skills on firm intellectual property strategy: a study for small to medium-sized enterprises in Belgium , 2013 .

[29]  Erhan Atay,et al.  Global Competitiveness in the EU Through Green Innovation Technologies and Knowledge Production , 2015 .

[30]  Xiaolan Fu,et al.  Foreign Direct Investment, Absorptive Capacity and Regional Innovation Capabilities: Evidence from China , 2008 .

[31]  Helle Alsted Søndergaard,et al.  Neither invented nor shared here: The impact and management of attitudes for the adoption of open innovation practices , 2014 .

[32]  Brendan Boyle,et al.  Knowledge creation measurement methods , 2010, J. Knowl. Manag..

[33]  Jonas Rundquist,et al.  Product Development in SMEs: a literature review , 2008 .

[34]  Amr Arisha,et al.  Knowledge management and measurement: a critical review , 2013, J. Knowl. Manag..

[35]  R. Petty,et al.  INTELLECTUAL CAPITAL LITERATURE REVIEW: MEASUREMENT, REPORTING AND MANAGEMENT , 2000 .

[36]  Wynne W. Chin Bootstrap Cross-Validation Indices for PLS Path Model Assessment , 2010 .

[37]  S. Zahra,et al.  Absorptive Capacity: A Review, Reconceptualization, and Extension , 2002 .

[38]  P. Matthews ICT assimilation and SME expansion , 2007 .

[39]  Peter Nijkamp,et al.  The impact of regional absorptive capacity on spatial knowledge spillovers: the Cohen and Levinthal model revisited , 2012 .

[40]  H. Chesbrough Business Model Innovation: Opportunities and Barriers , 2010 .

[41]  J. Barney Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view , 2001 .

[42]  Lorne Olfman,et al.  Assessing knowledge management success/effectiveness models , 2004, 37th Annual Hawaii International Conference on System Sciences, 2004. Proceedings of the.

[43]  Paul Lanoie,et al.  The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness? , 2010, Review of Environmental Economics and Policy.

[44]  Víctor J. García-Morales,et al.  Technological distinctive competencies and organizational learning: Effects on organizational innovation to improve firm performance , 2012 .

[45]  Gaby Odekerken-Schröder,et al.  Using PLS path modeling for assessing hierarchial construct models: guidelines and impirical illustration , 2009 .

[46]  Ron Adner,et al.  Value Creation in Innovation Ecosystems: How the Structure of Technological Interdependence Affects Firm Performance in New Technology Generations , 2009 .

[47]  Carlo Bagnoli,et al.  The impact of knowledge management and strategy configuration coherence on SME performance , 2014 .

[48]  Joseph F. Hair,et al.  On the Emancipation of PLS-SEM: A Commentary on Rigdon (2012) , 2014 .

[49]  Francisco Javier Lloréns Montes,et al.  How do small firms learn to develop a social media competence? , 2015, Int. J. Inf. Manag..

[50]  Cristina Bettinelli,et al.  Business models, intangibles and firm performance: evidence on corporate entrepreneurship from Italian manufacturing SMEs , 2015 .

[51]  Donald A. Norman,et al.  Incremental and Radical Innovation: Design Research vs. Technology and Meaning Change , 2014, Design Issues.

[52]  M. Smith,et al.  Implementing strategically aligned performance measurement in small firms , 2007 .

[53]  Ayşe Günsel,et al.  Research on Effectiveness of Technology Transfer from a Knowledge Based Perspective , 2015 .

[54]  Jeff W. Trailer,et al.  Measuring performance in entrepreneurship research , 1996 .

[55]  Yi-Long Jaw,et al.  Building global dynamic capabilities through innovation: A case study of Taiwan's cultural organizations , 2009 .

[56]  Giancarlo Gomes,et al.  Organizational learning capability, innovation and performance: study in small and medium-sized enterprises (SMES) , 2017 .

[57]  Mie Augier,et al.  Dynamic Capabilities and the Role of Managers in Business Strategy and Economic Performance , 2009, Organ. Sci..

[58]  S. Vitell,et al.  Ethics and Social Responsibility in Marketing: An Examination of the Ethical Evaluation of Advertising Strategies , 1997 .

[59]  Udo Gennari,et al.  IPR training and tools for better handling of IPR topics by SMEs , 2013 .

[60]  Jin Young Kim,et al.  Economics of Intellectual Property in the Context of a Shifting Innovation Paradigm: A Review from the Perspective of Developing Countries , 2013 .

[61]  Peter Galvin,et al.  A configuration-based approach to integrating dynamic capabilities and market transformation in small and medium-sized enterprises to achieve firm performance , 2015 .

[62]  M. Alonso‐Almeida,et al.  Adoption and use of technology in small business environments , 2013 .

[63]  Shu-Hsien Liao,et al.  Knowledge management technologies and applications - literature review from 1995 to 2002 , 2003, Expert Syst. Appl..

[64]  T. Davenport,et al.  The Mysterious Art and Science of Knowledge-Worker Performance , 2002 .

[65]  E. Hansen,et al.  Sustainability-Oriented Innovation of SMEs: A Systematic Review , 2014 .

[66]  Joseph G. Davis,et al.  Effects of knowledge management strategy on organizational performance: A complementarity theory-based approach , 2008 .

[67]  Fernando Ramos,et al.  The Use of Information and Communication Technologies in Organizational Learning Practices: A Research Study in an Innovation-oriented Portuguese Organization , 2015, Int. J. Adv. Corp. Learn..

[68]  H. Etzkowitz,et al.  Triple Helix Systems: An Analytical Framework for Innovation Policy and Practice in the Knowledge Society , 2013 .

[69]  Yi Wang,et al.  How information technology influences environmental performance: Empirical evidence from China , 2015, Int. J. Inf. Manag..

[70]  Mark Perry,et al.  Global Governance of Intellectual Property in the 21st Century , 2016 .

[71]  Daniel A. Levinthal,et al.  ABSORPTIVE CAPACITY: A NEW PERSPECTIVE ON LEARNING AND INNOVATION , 1990 .

[72]  Ana Maria Bojica,et al.  Knowledge acquisition and corporate entrepreneurship: Insights from Spanish SMEs in the ICT sector , 2012 .

[73]  Junseok Hwang,et al.  External knowledge search, innovative performance and productivity in the Korean ICT sector , 2010 .

[74]  Benjamin B. M. Shao,et al.  The impacts of information technology on total factor productivity: A look at externalities and innovations , 2014 .

[75]  L. Edvinsson IC 21: reflections from 21 years of IC practice and theory , 2013 .

[76]  M. Sarstedt,et al.  A new criterion for assessing discriminant validity in variance-based structural equation modeling , 2015 .

[77]  Albert H. Segars,et al.  Knowledge Management: An Organizational Capabilities Perspective , 2001, J. Manag. Inf. Syst..

[78]  John Rohrbaugh,et al.  A Spatial Model of Effectiveness Criteria: Towards a Competing Values Approach to Organizational Analysis , 1983 .

[79]  Irene M. Herremans,et al.  Extended VAIC model: measuring intellectual capital components , 2007 .

[80]  Silvia Massa,et al.  Knowledge domain and innovation behaviour , 2011 .

[81]  Tarng-Yao Yang,et al.  Investigating the success of knowledge management: An empirical study of small- and medium-sized enterprises , 2016 .

[82]  Kalle Lyytinen,et al.  Organizing for Innovation in the Digitized World , 2012, Organ. Sci..

[83]  S. Zahra,et al.  The Role of External Knowledge Sources and Organizational Design in the Process of Opportunity Exploitation , 2013 .

[84]  Hui-Ling Huang,et al.  Knowledge management fit and its implications for business performance: A profile deviation analysis , 2012, Knowl. Based Syst..

[85]  S. Zahra,et al.  The effect of international venturing on firm performance: The moderating influence of absorptive capacity , 2008 .

[86]  Domingo García-Pérez-de-Lema,et al.  Financing constraints and SME innovation during economic crises , 2016 .

[87]  Knut Blind,et al.  The influence of strategic patenting on companies' patent portfolios , 2009 .

[88]  L. Raymond,et al.  IT-enabled Knowledge Management for the Competitive Performance of Manufacturing SMEs: An Absorptive Capacity-based View , 2016 .

[89]  Li Xu,et al.  The impact of team task and job engagement on the transfer of tacit knowledge in e-business virtual teams , 2012, Inf. Technol. Manag..

[90]  J. West,et al.  Leveraging External Sources of Innovation: A Review of Research on Open Innovation , 2013 .

[91]  Ikujiro Nonaka,et al.  Dynamic fractal organizations for promoting knowledge-based transformation – A new paradigm for organizational theory , 2014 .

[92]  Karen Jensen The desire to learn: an analysis of knowledge‐seeking practices among professionals , 2007 .

[93]  Megan J. MacGarvie,et al.  Patents, Thickets and the Financing of Early-Stage Firms: Evidence from the Software Industry , 2007 .

[94]  Selim Zaim,et al.  Performance of knowledge management practices: a causal analysis , 2007, J. Knowl. Manag..

[95]  Jari Kuusisto,et al.  Informal ways to protect intellectual property (IP) in KIBS businesses , 2011 .

[96]  I. Barreto Dynamic Capabilities: A Review of Past Research and an Agenda for the Future , 2010 .

[97]  P. Quintas,et al.  Knowledge management: A strategic agenda , 1997 .

[98]  D. Teece Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance , 2007 .

[99]  Kevin Zheng Zhou,et al.  How knowledge affects radical innovation: Knowledge base, market knowledge acquisition, and internal knowledge sharing , 2012 .

[100]  Patricia Ordóñez de Pablos,et al.  Regional knowledge management: the perspective of management theory , 2011, Behav. Inf. Technol..

[101]  R. Sohi,et al.  IT competency and firm performance: is organizational learning a missing link? , 2003 .

[102]  Cheryl Burke Jarvis,et al.  A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research , 2003 .

[103]  V. Parida,et al.  Inbound Open Innovation Activities in High‐Tech SMEs: The Impact on Innovation Performance , 2012 .

[104]  V. M. Dalfard,et al.  Relations between transformational leadership, organizational learning, knowledge management, organizational innovation, and organizational performance: an empirical investigation of manufacturing firms , 2013 .

[105]  Caterina Rizzi,et al.  A TRIZ-based approach to manage innovation and intellectual property , 2011, Int. J. Technol. Manag..

[106]  Shu-Hui Chuang,et al.  Performance implications of knowledge management processes: Examining the roles of infrastructure capability and business strategy , 2011, Expert Syst. Appl..

[107]  N. Bontis Intellectual capital: an exploratory study that develops measures and models , 1998 .

[108]  D. Tweed,et al.  Knowledge Sharing Success for Sustaining Organizational Competitive Advantage , 2013 .

[109]  Pedro Soto-Acosta,et al.  Analyzing ICT adoption and use effects on knowledge creation: An empirical investigation in SMEs , 2010, Int. J. Inf. Manag..

[110]  Stefano Denicolai,et al.  Overcoming the false dichotomy between internal R&D and external knowledge acquisition: Absorptive capacity dynamics over time , 2016 .

[111]  M. Chen,et al.  Does innovation lead to performance? An empirical study of SMEs in Taiwan , 2007 .

[112]  Eva-Maria Kern,et al.  Integration of business process management and knowledge management: state of the art, current research and future prospects , 2014 .

[113]  Kathrin Kirchner,et al.  Social Media in Organizations: Leveraging Personal and Collective Knowledge Processes , 2014, J. Organ. Comput. Electron. Commer..

[114]  Pia Hurmelinna-Laukkanen,et al.  WHAT'S SMALL SIZE GOT TO DO WITH IT? PROTECTION OF INTELLECTUAL ASSETS IN SMEs , 2009 .

[115]  Ivars Majors ICT and Knowledge Management Models for Promotion of SME’s Competitiveness , 2010 .

[116]  V. Naidoo Firm survival through a crisis: The influence of market orientation, marketing innovation and business strategy , 2010 .