Network ties and entrepreneurial orientation: Innovative performance of SMEs in a developing country

  • Theresia GunawanEmail author
  • Jojo Jacob
  • Geert Duysters


This study investigates the role of intra-cluster ties, extra-cluster ties, and entrepreneurial orientation in shaping firms’ innovative performance. We conduct our analysis on a primary data set of 120 small and medium enterprises located in the Cibaduyut footwear-manufacturing cluster, Indonesia. We explore the effectiveness of knowledge acquisition through intra-cluster ties and extra-cluster ties on innovative performance. We find that extra-cluster ties mediate the relationship between proactiveness and innovative performance. Also, a combination of high extra-cluster ties and risk taking exert a positive impact on innovative performance. Surprisingly, we find that risk taking negatively moderates the influence of intra-cluster ties on innovative performance. Over-reliance on within-cluster knowledge sharing may result in the diffusion of redundant knowledge rather than making new knowledge available to the firm. Overall, our findings point to the synergistic effects of entrepreneurial orientation and extra-cluster ties on innovative performance.


Proactiveness Risk taking Intra-cluster ties and Extra-cluster ties Small and medium enterprises 



An earlier version of this paper was presented and nominated for the best paper award at the 6th Annual Conference of the Academy of Innovation and Entrepreneurship 2013, University of Oxford- United Kingdom. We thank participants of this conference for their comments and suggestions.


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Authors and Affiliations

  1. 1.Department of Business AdministrationParahyangan Catholic UniversityBandungIndonesia
  2. 2.Grenoble Ecole de ManagementGrenobleFrance
  3. 3.Department of Economics and ManagementTilburg UniversityTilburgThe Netherlands

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