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Entrepreneurial Orientation, Innovation Capabilities and Export Performance Joaquín Alegre Professor in Innovation Management University of Valencia

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Presentation on theme: "Entrepreneurial Orientation, Innovation Capabilities and Export Performance Joaquín Alegre Professor in Innovation Management University of Valencia"— Presentation transcript:

1 Entrepreneurial Orientation, Innovation Capabilities and Export Performance Joaquín Alegre Professor in Innovation Management University of Valencia

2 Valencia

3 Valencia… A venue for international conferences -EIBA OLKC EURAM 2014 (http://www.euram-online.org/conference/2014/)

4 University of Valencia Created in 1499 Over 55,000 students (Degrees & Masters) 2nd most popular destination for Erasmus students Teaching in Spanish, Catalan & English Doctoral programmes with Latin America

5 Topic Relevance & Research objectives Entrepreneurship as well as innovation and exports are widely viewed as an important stimulus of positive outcomes at both firm and society levels (Ireland & Webb, 2007) EO-Performance Lit. ( Rauch, Wiklund, Lumpkin & Frese, 2009; Blackburn & Kovalainen, 2009) OBJECTIVE 1: Examining export performance as an outcome of EO (Yeoh & Jeong, 1995) OBJECTIVE 2: Proposing 3 types of innovation capabilities: technology, market and design OBJECTIVE 3: Examining the role of innovation capabilities as mediators in the relationship between entrepreneurial orientation and export performance? Entrepreneurial Orientation, Innovation Capabilities and Export Performance

6 ENTREPRENEURIAL ORIENTATION can be considered a management attitude that seeks to accentuate innovation, flexibility, and responsiveness driven by the perception of opportunity (Guth and Ginsberg, 1990; Jogaratnam et al., 1999). Conceptual background EO is characterised by a management that (Covin & Slevin, 1989; Lumpkin & Dess, 1996): Innovates: to engage in and support new ideas. Has an aggressive competitive orientation (Proactiveness): to anticipate and act on future needs by searching for new opportunities. Has a strong risk taking propensity: to commit significant resources to opportunities that have a reasonable chance of failure. Entrepreneurial Orientation, Innovation Capabilities and Export Performance

7 Conceptual background EOFirm Performance (Zahra & Covin, 1995; Wiklund, 1999) Intermediate steps? (e.g. Wang, 2008) Entrepreneurial Orientation, Innovation Capabilities and Export Performance

8 Wang (2008). Entrepreneurship, Theory & Practice Conceptual background… Previous findings Entrepreneurial Orientation, Innovation Capabilities and Export Performance

9 Conceptual background EOFirm Performance (Zahra & Covin, 1995; Wiklund, 1999) EOExports (Yeoh & Jeong, 1995) - Export performance as a performance variable. - Especially important at present for SMEs in Southern Europe! Entrepreneurial Orientation, Innovation Capabilities and Export Performance

10 H1.. Entrepreneurial Orientation Innovation Performance Export intensity.. H2 Organizational Learning Capability H3 H4 Conceptual background… Previous findings Fernández-Mesa & Alegre, EIBA 2012 Entrepreneurial Orientation, Innovation Capabilities and Export Performance

11 Conceptual background… Previous findings Chiva & Alegre (2009). British Journal of Management Entrepreneurial Orientation, Innovation Capabilities and Export Performance

12 Conceptual background… Previous findings PRODUCT INNOVATION EFFICACY INNOVATION PROJECTS EFFICIENCY Degree of sucess of product innovation Efforts carried out to achieve this degree of success INNOVATION PERFORMANCE PROCESS INNOVATION EFFICACY Degree of sucess of process innovation Oslo Manual (2005) / Alegre et al., (2012). International Small Business Journal Entrepreneurial Orientation, Innovation Capabilities and Export Performance

13 Conceptual background… Previous findings Perceptual data Objective data 150 Italian and Spanish SMEs Entrepreneurial Orientation, Innovation Capabilities and Export Performance

14 Conceptual background… Previous findings Perceptual data Objective data 150 Italian and Spanish SMEs Entrepreneurial Orientation, Innovation Capabilities and Export Performance

15 INNOVATION CAPABILITIES TECHNOLOGY CAPABILITIES MARKET CAPABILITIES DESIGN CAPABILITIES Schmookler (1966) + design in some industries Conceptual background… Our next step forward Entrepreneurial Orientation, Innovation Capabilities and Export Performance

16 Our research model: direct link H1 Entrepreneurial Orientation Export performance.. SizeLocation Entrepreneurial Orientation, Innovation Capabilities and Export Performance Perceptual data Perceptual data

17 Research model: mediation H1.. Entrepreneurial Orientation Innovation Capabilities Export intensity.. H2 SizeLocation Technology Capabilities Market Capabilities Design Capabilities Entrepreneurial Orientation, Innovation Capabilities and Export Performance Perceptual data Perceptual data

18 Target population: Italian and Spanish ceramic tiles producers Italian Ceramics industrial district (Sassuolo) Spanish Ceramics industrial district (Castellón) Methods. Data collection procedure Entrepreneurial Orientation, Innovation Capabilities and Export Performance

19 Methods. Data collection procedure Target population: Italian and Spanish ceramic tiles producers n World leaders in technology and design. n Innovating Industry. n Top world exporters. n Similar characteristics in both industrial districts: Geographical concentration, SMEs, Internationalization. n Single industry study: It has the advantage of analyzing an homogeneous population. Innovation, and internationalization processes might differ substantially from one industry to another (technology, markets, design issues, etc…). Entrepreneurial Orientation, Innovation Capabilities and Export Performance

20 Survey #1 (2004) Sample: 182 firms 100 Spanish firms 82 Italian firms EO: 1 dimension & 9 items (Covin & Slevin, 1989) Answered by General Manager in 2004 Pre-test: 4 technicians from ITC (Spanish Technological Institute in Ceramics) Non response bias assessment (Comparison for turnover & no. of employees) Entrepreneurial Orientation, Innovation Capabilities and Export Performance Methods. Data collection procedure & Measures

21 Survey #2 (2012) Sample: 226 firms 111 Spanish firms 105 Italian firms Innovation capabilities: - Technology Capabilities (Huang, JBR, 2011) - Market Capabilities (Vorhies et al., SMJ, 2009) - Design Capabilities (Chiva & Alegre, JPIM, 2009) Answered by Operarions Manager in 2012 Export performance (Lages et al., JIM, 2009) Answered by CEO in 2012 Pre-test: 4 technicians from ITC (Spanish Technological Institute in Ceramics) Non response bias assessment (Comparison for turnover & no. of employees) Entrepreneurial Orientation, Innovation Capabilities and Export Performance

22 Results… Innovation Capabilities.. 2 =191,844 p=0.000; d.f.=74 NFI=0.891; NNFI=0.913; CFI=0.929; RMSEA= ** Technology Capability Marketing Capability Design Capability 0.77** 0.82** R 2 =0.752 AFC Innovation Capabilities N=226 Entrepreneurial Orientation, Innovation Capabilities and Export Performance

23 Results… Innovation Capabilities Export Performance.. 2 = p=0.000; d.f.=115 NFI=0.906; NNFI=0.936; CFI=0.946; RMSEA=0.073 R 2 = ** 0.54** Technology Capability Marketing Capability Design Capability 0.80** 0.81** N=226 Entrepreneurial Orientation, Innovation Capabilities and Export Performance

24 Expected Results: mediating model H1.. Entrepreneurial Orientation Innovation Capabilities Export intensity.. H2 SizeLocation Technology Capabilities Market Capabilities Design Capabilities Entrepreneurial Orientation, Innovation Capabilities and Export Performance

25 Findings & Discussion n Exports be an outstanding performance concept, especially for SMEs in crisis times n Proposal of Innovation capabilities as a three-dimensions concept + Confirmatory analysis n Deepening the relationship between innovation and exports in manufacturing industries n We also expect to confirm: - EO is a managerial attitude that could be considered as an important antecedent of Innovation Capabilities and Export outcomes. - EO could be found useful in explaining intra-industry performance differences in terms of export performance. Entrepreneurial Orientation, Innovation Capabilities and Export Performance

26 Managerial implications n EO & Innovation Capabilities: Sucess factors that depend on deliberate managerial action. n How costly is it to develop Innovation Capabilities in a firm? n Is it an option? Isnt it a way of adapting to current times? Limitations & Future Research n Adding more mediating variables to the EO-performance link n Single industry analysis Other industries n Case studies to obtain a more thorough picture of the situation that allows focusing on the whole processes of learning and innovation. Entrepreneurial Orientation, Innovation Capabilities and Export Performance

27 Joaquín Alegre Professor in Innovation Management University of Valencia


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