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Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Entrepreneurial Orientation, Innovation Capabilities and Export Performance. Joaquín Alegre Professor in I nnovation Management University of Valencia joaquin.alegre@uv.es ja343@sussex.ac.uk. Valencia. Valencia… A venue for international conferences. EIBA 2009 OLKC 2012

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Entrepreneurial Orientation, Innovation Capabilities and Export Performance

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  1. Entrepreneurial Orientation, Innovation Capabilities and Export Performance Joaquín Alegre Professor in Innovation Management University of Valencia joaquin.alegre@uv.es ja343@sussex.ac.uk

  2. Valencia

  3. Valencia… A venue for international conferences • EIBA 2009 • OLKC 2012 • 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 Entrepreneurial Orientation, Innovation Capabilities and Export Performance • 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. 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. Entrepreneurial Orientation, Innovation Capabilities and Export Performance Conceptual background EO Firm Performance (Zahra & Covin, 1995; Wiklund, 1999) Intermediate steps? (e.g. Wang, 2008)

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

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

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

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

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

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

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

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

  19. 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. 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. 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 fromITC (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. Entrepreneurial Orientation, Innovation Capabilities and Export Performance Results… . Technology Capability 0.82** R2=0.752 Innovation Capabilities Marketing Capability 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. Entrepreneurial Orientation, Innovation Capabilities and Export Performance Results… . Technology Capability 0.81** R2=0.292 Innovation Capabilities Export Performance Marketing Capability 0.54** 0.80** 0.86** Design Capability N=226 2 =253.63 p=0.000; d.f.=115 NFI=0.906; NNFI=0.936; CFI=0.946; RMSEA=0.073 .

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

  25. Entrepreneurial Orientation, Innovation Capabilities and Export Performance Findings & Discussion • Exports be anoutstanding performance concept, especiallyforSMEs in crisis times • Proposal of Innovationcapabilities as a three-dimensions concept + Confirmatoryanalysis • Deepeningtherelationshipbetweeninnovation and exports in manufacturing industries • Wealsoexpecttoconfirm: - EO is a managerialattitudethatcould be considered as animportantantecedent of InnovationCapabilities and Exportoutcomes. - EO could be founduseful in explainingintra-industry performance differences in terms of export performance.

  26. 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 joaquin.alegre@uv.es ja343@sussex.ac.uk

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