How does cooperation affect innovation in micro-enterprises?. Issue 8 (9th September 2014)

• Record Type: Journal Article
• Authors: Tu, Chiayu; Hwang, Shiuh-Nan; Wong, Jehn-Yih
• Is Part Of: Management decision. Volume 52:Issue 8(2014)
• Page Start: 1390
• Page End: 1409
• Publication Date: 2014-09-09
• Subjects: Management -- Periodicals; 658.403
• DOI: 10.1108/MD-07-2013-0388
• Languages: English
• ISSNs: 0025-1747

Abstract

<abstract> <title> <x content-type="archive" xml:space="preserve">Abstract</x> </title> <sec> <title content-type="abstract-heading">Purpose</title> <p> – This research investigates how micro-enterprises cooperate with external parties in order to promote innovation and entrepreneurial success. The purpose of this paper is to describe supplier and consumer cooperation and analyzes how these two behavioral modes influence the product and service innovations of micro-enterprises. Based on the resource-based view of the firm, the authors show that micro-enterprises help the source of innovation by tapping into the resources and abilities of suppliers. </p> </sec> <sec> <title content-type="abstract-heading">Design/methodology/approach</title> <p> – This research used a questionnaire to randomly sample micro-entrepreneurs that run stalls at night markets. Before distributing the final questionnaire, the authors in-depth interviewed ten micro-entrepreneurs and asked them to openly describe their entrepreneurial processes and success stories. </p> </sec> <sec> <title content-type="abstract-heading">Findings</title> <p> – The results of this study show that cooperation with consumers does not improve product and service innovations. By contrast, the cooperation of micro-enterprises with suppliers was found to increase the generation of product and service innovations in the present study. And the findings show that the effect of innovation approaches on entrepreneurial success indicates that product innovation positively improves firm performance. Last, from the perspective of cooperation behavior, product innovation mediates entrepreneurial success through cooperation with suppliers. </p> </sec> <sec> <title content-type="abstract-heading">Research limitations/implications</title> <p> – Because of respondents were night market vendors and thus the results are not necessarily generalizable to other types of micro-enterprises. Therefore, researchers are encouraged to test multiple types of micro-enterprises. Second, this research aimed to differentiate the relationships between innovation approaches and entrepreneurial success by focussing exclusively on product and service innovations. Therefore, other variables should be included in future studies. </p> </sec> <sec> <title content-type="abstract-heading">Practical implications</title> <p> – As for practical implications in the field of cooperation behavior, the authors have shown that it is crucial to maintain long-term cooperative relations with trusted suppliers. </p> </sec> <sec> <title content-type="abstract-heading">Social implications</title> <p> – As for practical implications in the field of cooperation behavior, the authors have shown that it is crucial to maintain long-term cooperative relations with trusted suppliers. </p> </sec> <sec> <title content-type="abstract-heading">Originality/value</title> <p> – This paper fulfills an identified need to study how innovation in micro-enterprises.</p> </sec> </abstract>