New product development and sustainable performance of Chinese SMMEs: the role of dynamic capability and intra-national environmental forces

Liu, Y., Ndubisi, N. O., Liu, Y. and Barrane, F. Z. (2020) New product development and sustainable performance of Chinese SMMEs: the role of dynamic capability and intra-national environmental forces. International Journal of Production Economics, 230, 107817. (doi: 10.1016/j.ijpe.2020.107817)

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Abstract

Despite a growing research interest in innovation strategies i.e. new product development, very few studies explore how the regional environmental mechanism is inherent in the link between new product development and sustainable business performance of small and medium manufacturing enterprises (SMMEs) in Asian countries, due to high-velocity business environments. To address this research gap, the study integrates the dynamic capability perspective, and the institutional and entrepreneurship theory in the investigation of how the distinct regional characteristics of the intra-national market in which SMMEs are embedded, along with the dynamic capability of SMMEs, influence the linkage between new product development and sustainable firm performance. Using China as the research setting, we test the research model empirically, based on 1321 samples of SMMEs selected from a nationwide survey. The new findings indicate that an SMME's regional institutional forces, regional entrepreneurial intensity and dynamic capability moderate the effects of new product development on firms' sustainable performance by mitigating the inherent inadequacy of and reliance on firm-specific resources by SMMEs. The new findings also provide the research and managerial implications for SMMEs from Asian economies conducting new product development strategies.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Liu, Dr Kurt
Authors: Liu, Y., Ndubisi, N. O., Liu, Y., and Barrane, F. Z.
College/School:College of Social Sciences > Adam Smith Business School > Management
Journal Name:International Journal of Production Economics
Publisher:Elsevier
ISSN:0925-5273
ISSN (Online):1873-7579
Published Online:06 June 2020

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