How institutions influence SME innovation and networking practices: the case of Vietnamese agribusiness
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How institutions influence SME innovation and networking practices : the case of Vietnamese agribusiness. / Thai, Thi Minh; Hjortsø, Carsten Nico Portefée.
In: Journal of Small Business Management, Vol. 53, No. Supplement S1, 01.10.2015, p. 209-228.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - How institutions influence SME innovation and networking practices
T2 - the case of Vietnamese agribusiness
AU - Thai, Thi Minh
AU - Hjortsø, Carsten Nico Portefée
PY - 2015/10/1
Y1 - 2015/10/1
N2 - This paper addresses impacts of the institutional framework on small and medium-sized enterprise (SME) innovation and networking practices. Through an explorative study of a domestic SME-dominated sector in Vietnam, we find that the institutional framework limits incentives for long-term investments, resulting in exploitative cost-control strategies rather than product-oriented innovation. Due to dominating social norms, SMEs form trust-based friendship networks, potentially limiting knowledge acquisition and weakening business rationality. Institutional pressures reinforce negative influences on SMEs' incentives to develop innovation ambidexterity. The findings suggest that new institutional economic sociology provides a promising foundation for understanding how institutional frameworks influence SMEs' innovation practices in emerging economies.
AB - This paper addresses impacts of the institutional framework on small and medium-sized enterprise (SME) innovation and networking practices. Through an explorative study of a domestic SME-dominated sector in Vietnam, we find that the institutional framework limits incentives for long-term investments, resulting in exploitative cost-control strategies rather than product-oriented innovation. Due to dominating social norms, SMEs form trust-based friendship networks, potentially limiting knowledge acquisition and weakening business rationality. Institutional pressures reinforce negative influences on SMEs' incentives to develop innovation ambidexterity. The findings suggest that new institutional economic sociology provides a promising foundation for understanding how institutional frameworks influence SMEs' innovation practices in emerging economies.
U2 - 10.1111/jsbm.12189
DO - 10.1111/jsbm.12189
M3 - Journal article
VL - 53
SP - 209
EP - 228
JO - Journal of Small Business Management
JF - Journal of Small Business Management
SN - 0047-2778
IS - Supplement S1
ER -
ID: 99101334