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Joaquín Alegre Professor in Innovation Management

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Presentation on theme: "Joaquín Alegre Professor in Innovation Management"— 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 2009 OLKC 2012 EURAM (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
Entrepreneurial Orientation, Innovation Capabilities and Export Performance 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?

6 Conceptual background
Entrepreneurial Orientation, Innovation Capabilities and Export Performance Conceptual background 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). 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.

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

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

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

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

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

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

13 Conceptual background… Previous findings
Entrepreneurial Orientation, Innovation Capabilities and Export Performance Conceptual background… Previous findings 150 Italian and Spanish SMEs 2006. Objective data 2004. Perceptual data

14 Conceptual background… Previous findings
Entrepreneurial Orientation, Innovation Capabilities and Export Performance Conceptual background… Previous findings 150 Italian and Spanish SMEs 2006. Objective data 2004. Perceptual data

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

16 Our research model: direct link
Entrepreneurial Orientation, Innovation Capabilities and Export Performance Our research model: direct link . Entrepreneurial Orientation H1 2012. Perceptual data 2004. Perceptual data Export performance Size Location .

17 Research model: mediation
Entrepreneurial Orientation, Innovation Capabilities and Export Performance Research model: mediation . . Entrepreneurial Orientation 2012. Perceptual data H1 2004. Perceptual data H2 Innovation Capabilities Export intensity Technology Capabilities Market Capabilities Design Capabilities Size Location . .

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

19 Methods. Data collection procedure
Entrepreneurial Orientation, Innovation Capabilities and Export Performance Methods. Data collection procedure ► Target population: Italian and Spanish ceramic tiles producers World leaders in technology and design. Innovating Industry. Top world exporters. Similar characteristics in both industrial districts: Geographical concentration, SMEs, Internationalization. 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…).

20 Methods. Data collection procedure & Measures
Entrepreneurial Orientation, Innovation Capabilities and Export Performance Methods. Data collection procedure & Measures ► Survey #1 (2004) 82 Italian firms ► Sample: 182 firms 100 Spanish 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)

21 Methods. Data collection procedure & Measures
Entrepreneurial Orientation, Innovation Capabilities and Export Performance Methods. Data collection procedure & Measures ► Survey #2 (2012) 105 Italian firms ► Sample: 226 firms 111 Spanish firms ► Pre-test: 4 technicians from ITC (Spanish Technological Institute in Ceramics) ► 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 ► Non response bias assessment (Comparison for turnover & no. of employees)

22 AFC Innovation Capabilities
Entrepreneurial Orientation, Innovation Capabilities and Export Performance Results… . Technology Capability 0.82** R2=0.752 Marketing Capability Innovation Capabilities 0.77** 0.87** Design Capability N=226 AFC Innovation Capabilities 2 =191,844 p=0.000; d.f.=74 NFI=0.891; NNFI=0.913; CFI=0.929; RMSEA=0.084 .

23 NFI=0.906; NNFI=0.936; CFI=0.946; RMSEA=0.073
Entrepreneurial Orientation, Innovation Capabilities and Export Performance Results… . Technology Capability 0.81** R2=0.292 Marketing Capability Innovation Capabilities Export Performance 0.54** 0.80** 0.86** Design Capability N=226 2 = p=0.000; d.f.=115 NFI=0.906; NNFI=0.936; CFI=0.946; RMSEA=0.073 .

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

25 Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Findings & Discussion Exports be an outstanding performance concept, especially for SMEs in crisis times Proposal of Innovation capabilities as a three-dimensions concept + Confirmatory analysis Deepening the relationship between innovation and exports in manufacturing industries 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.

26 Managerial implications Limitations & Future Research
Entrepreneurial Orientation, Innovation Capabilities and Export Performance Managerial implications EO & Innovation Capabilities: Sucess factors that depend on deliberate managerial action. How costly is it to develop Innovation Capabilities in a firm? Is it an option? Isn’t it a way of adapting to current times”? Limitations & Future Research Adding more mediating variables to the EO-performance link Single industry analysis  Other industries Case studies to obtain a more thorough picture of the situation that allows focusing on the whole processes of learning and innovation.

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


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