Systemic relation between innovation capabilities, innovation strategy, and financial performance of small and medium enterprises: Impact of technology trajectory, management obstacles, and investment

Isabel Cristina Quintero-Sepúlveda, Luciano Gallón-Londoño (Co-author), Alexander Zúñiga Collazos (Co-author)

Research output: Contribution to journalArticle in an indexed scientific journalpeer-review

Abstract

Innovation capabilities are an asset of the company to achieve competitive advantages, are related to strategy and impact on financial performance. They have been analyzed with quantitative methods that, although allow determining the causal relationships between the variables, are not enough to understand their dynamics, especially in developing countries. This study used structural equation modeling to confirm the relationships among four innovation strategies and innovation capabilities and financial performance in a sample comprising 135 small and medium enterprises (SMEs) in Colombia. In addition, an exploratory System Dynamics simulation model was designed based on archetypes to broaden the understanding of the behavior of relationships as variables change. It was found that investment in innovation capabilities, management obstacles, and the impact of changes in the technology trajectory influence the dynamics of the problem. Furthermore, different strategies generate different behaviors in innovation capabilities and different financial performance. Other theoretical and practical findings and implications are discussed.

Translated title of the contributionRelación sistémica entre las capacidades de innovación, la estrategia de innovación y el desempeño financiero de las pequeñas y medianas empresas: impacto de la trayectoria tecnológica, obstáculos de gestión e inversión
Original languageEnglish
Pages (from-to)1-22
Number of pages22
JournalSystems Research and Behavioral Science
DOIs
StatePublished - 7 Jun 2024

Bibliographical note

Publisher Copyright:
© 2024 John Wiley & Sons Ltd.

Keywords

  • financial performance
  • innovation capability
  • innovation strategy
  • SEM analysis
  • SMEs
  • system dynamics

Types Minciencias

  • Artículos de investigación con calidad A1 / Q1

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