Effects Of Network Embeddedness,Dark-Side Of Business Relationship,Relationship Ending Capability,and Organizational Learning On Innovation Performance:Evidence From Ghana

One key driver for firm competitive advantage is firm's ability to move with the everchanging business environment and associated market demands,by being innovative.Innovation is a key driving force for the socio-economic development of nations,and as such,some countries have heavily investment in innovation activities,and also offered incentives to individuals and corporate bodies to engage in innovation.Innovation could however be resource-intensive at times,and as such,alliances and firm associations offer firms,access to innovation resources such as knowledge,technology and human resources.In addition,innovativeness is mostly a difficult journey for Small and Medium-sized Enterprises(SMEs)because they are constraint in terms of human and financial resources,often lack the competence,and tend to use less structured methodologies to innovate.Overall,these dynamics may possibly restrict SMEs ability to innovate and attain competitive edge.Due to these challenges,some prior studies have sort to understand the factors that could enhance SMEs' innovation performance.This current thesis extends the body of knowledge by exploring the factors influencing the relationship between network embeddedness and SME's innovation performance.Further,the influence of some intermediary variables such as darkside,relationship ending capability,openness,and innovation capability were also assessed.In terms of methodology,the study gathered cross-sectional data from SMEs in Ghana.The data was collected using a structured questionnaire,which was built on 5-point Likert scale.After the data collection process,388 SMEs appropriately completed the questionnaire.Data analysis was therefore based on 388 SMEs.The data analysis for objectives 1,3&4 were run using OLS multiple linear regression approach in SPSS(v.23),whiles the data analysis for objective 2 was run using Structural Equation Modelling(SEM)approach in Amos(v.23).Objective one assessed the intermediary role of relationship ending capability and darkside between network embeddedness and SMEs' innovation performance.Results from the study indicated that,relationship dark-side negatively moderated the relationship between network embeddedness and SMEs' innovation performance.This negative effect is however,reduced by SMEs with high relationship ending capability.Objective two assessed theeffect of network embeddedness on innovation performance of small and medium-sized enterprises:the moderating role of innovation openness.It was concluded that,in the context of SMEs,network embeddedness had significant positive effect on innovation performance.We further identified that SMEs with both high levels of network embeddedness and innovation openness,had a much a much higher performance in their innovation,compared to SMEs that relied solely on network embeddedness.Objective three assessed organizational learning ambidexterity and openness,as determinants of SMEs' innovation performance.It was concluded that,although exploitative and exploratory learning strategies individually had a positive significant effect on SMEs' innovation performance,organizational learning ambidexterity was found to have a greater positive impact on innovation performance among SMEs.High levels of openness further boosted the effect of organizational learning ambidexterity on SMEs' innovation performance.The fourth objective assessed the moderating role of innovation capability in the relationship between market orientation and SMEs' innovation performance.It was concluded that,customer orientation and inter-functional coordination had a positive and significant effect on innovation performance,however,competitor orientation had no significant effect.Innovation capability positively moderated the effects of customer orientation,competitor orientation and inter-functional coordination on innovation performance.This indicates the crucial role of SMEs' innovative capability in leveraging the effect of competitor orientation on innovation performance.From the outcome of the thesis,it is recommended to management that,they pay particular attention to knowledge transfer practices,by making investments in the transformation of external innovative inputs to achieve successful innovation performance.Management of SMEs are advised to develop conducive organizational structures based on trust,openness to collaboration,etc.,for effective innovative knowledge transfer and transformation.As a managerial implication,the study also suggests to SME managers to develop their relationship ending capability,when embedding in network.Having relationship ending capability prevents SMEs from getting locked in unfruitful business relationships.This is because having relationship ending capability will grant SMEs the negotiation advantage when dealing with network members,as they have the chance of pulling out of the relationship and integrating into new business relationships.