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Fueling SMEs’ product innovation through entrepreneurial passion during COVID-19: The role of dynamic capability and environmental opportunities

Published online by Cambridge University Press:  04 January 2024

Yongdong Shi Open the ORCID record for Yongdong Shi [Opens in a new window] ,
Yu-xiao Liu Open the ORCID record for Yu-xiao Liu [Opens in a new window] ,
Veronica Hoi In Fong Open the ORCID record for Veronica Hoi In Fong [Opens in a new window]  and
Ya Lan Open the ORCID record for Ya Lan [Opens in a new window]
Yongdong Shi
Affiliation:
School of Business, Macau University of Science and Technology, Taipa, Macau, China
Yu-xiao Liu
Affiliation:
School of Business, Macau University of Science and Technology, Taipa, Macau, China
Veronica Hoi In Fong*
Affiliation:
School of Business, Macau University of Science and Technology, Taipa, Macau, China
Ya Lan
Affiliation:
School of Business, Macau University of Science and Technology, Taipa, Macau, China
*
Corresponding author: Veronica Hoi In Fong; Email: hifong@must.edu.mo
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Abstract

COVID-19 may not only pose threats but also provided opportunities for innovation and growth for many high-tech small- and medium-sized enterprises (SMEs). This study investigates the relationship between entrepreneurial passion (EP), dynamic capability (DC) for innovation and product innovation performance in SMEs during COVID-19. Hierarchical regression and bootstrapping methods were employed per the survey data of 195 Chinese SMEs. The results reveal that EP is an imperative antecedent of DC and product innovation. DC also positively mediates the relationship between SMEs’ product innovation performance and top managers’ EP. In addition, this mediation effect of DC becomes more pronounced when firms are facing more opportunities. These findings advance the existing literature by specifying the process top managers use to cultivate product innovation within SMEs in times of crisis.

Keywords

entrepreneurial passiondynamic capabilityproduct innovationCOVID-19upper echelon

Information

Type
Research Article
Information
Journal of Management & Organization , Volume 31 , Issue 2 , March 2025 , pp. 967 - 987
Copyright
© The Author(s), 2024. Published by Cambridge University Press in association with the Australian and New Zealand Academy of Management

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