Share:


Network ties, entrepreneurial creativity and competitive advantage: the moderating role of knowledge integration capability

    Ni Made Rai Juniariani Affiliation
    ; Dian Agustia Affiliation

Abstract

This study aims to examine the moderating effect of knowledge integration capability on the relationship between business ties, political ties, and entrepreneurial creativity on competitive advantage. We present the first model that links the ability to integrate knowledge, network ties, and entrepreneurial creativity with the background of MSMEs in Indonesia. This study’s data collection method is a questionnaire survey given to Indonesian MSME entrepreneurs. Meanwhile, 358 questionnaires have been qualified for further processing as part of the random sampling approach used in this study’s sample collection. Additionally, the survey data were acquired through the use of SmartPLS, and the study’s findings indicate that business ties, political ties, and entrepreneurial creativity all favorably impact competitive advantage. Knowledge integration capability reinforces the influence of business ties and entrepreneurial creativity on competitive advantage. But knowledge integration capability is unable to counteract the impact of political ties on competitive advantage. The results complement the literature related to the use of knowledge resources in achieving competitive advantage. Considering the important role of knowledge integration capability in the escalation of competitive advantage in corporations, MSME entrepreneurs are strongly advised to consider the available resource of knowledge. To preserve the competitive advantage, knowledge should be continuously expanded.

Keyword : business ties, political ties, entrepreneurial creativity, competitive advantage, knowledge integration capability

How to Cite
Juniariani, N. M. R., & Agustia, D. (2024). Network ties, entrepreneurial creativity and competitive advantage: the moderating role of knowledge integration capability. Business: Theory and Practice, 25(2), 377–386. https://doi.org/10.3846/btp.2024.18947
Published in Issue
Jun 27, 2024
Abstract Views
563
PDF Downloads
498
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Ahlin, B., Drnovšek, M., & Hisrich, R. D. (2014). Entrepreneurs’ creativity and firm innovation: The moderating role of entrepreneurial self-efficacy. Small Business Economics, 43(1), 101–117. https://doi.org/10.1007/s11187-013-9531-7

Alfian, E., Sijabat, S., Nimran, U., Utami, H. N., & Prasetya, A. (2021). The effects of dynamic capabilities, entrepreneurial creativity and ambidextrous innovation on firm’s competitiveness. Journal of Asian Finance, Economics and Business, 8(1), 711–721. https://doi.org/10.13106/jafeb.2021.vol8.no1.711

Alghababsheh, M. (2023). Enhancing supply chain resilience in SMEs: The role of business and political ties. Business Process Management Journal, 29(5), 1303–1329. https://doi.org/10.1108/BPMJ-02-2023-0076

Ali, S., Li, G., & Latif, Y. (2020). Unleashing the importance of creativity, experience and intellectual capital in the adaptation of export marketing strategy and competitive position. PLoS ONE, 15, 1–26. https://doi.org/10.1371/journal.pone.0241670

Amabile, T. M. (1997). Entrepreneurial creativity through motivational synergy. Journal of Creative Behavior, 31(1), 18–26. https://doi.org/10.1002/j.2162-6057.1997.tb00778.x

Asimakopoulos, G., Revilla, A. J., & Slavova, K. (2020). External knowledge sourcing and firm innovation efficiency. British Journal of Management, 31(1), 123–140. https://doi.org/10.1111/1467-8551.12367

Bananuka, J., Tauringana, V., & Tumwebaze, Z. (2022). Intellectual capital and sustainability reporting practices in Uganda. Journal of Intellectual Capital, 24(2). https://doi.org/10.1108/JIC-01-2021-0019

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

Behl, A., Jayawardena, N., Ishizaka, A., Gupta, M., & Shankar, A. (2022). Gamification and gigification: A multidimensional theoretical approach. Journal of Business Research, 139, 1378–1393. https://doi.org/10.1016/j.jbusres.2021.09.023

Bonn, I. (2005). Improving strategic thinking: A multilevel approach. Leadership & Organization Development Journal, 26(5), 336–354. https://doi.org/10.1108/01437730510607844

Boso, N., Story, V. M., & Cadogan, J. W. (2013). Entrepreneurial orientation, market orientation, network ties, and performance: Study of entrepreneurial firms in a developing economy. Journal of Business Venturing, 28(6), 708–727. https://doi.org/10.1016/j.jbusvent.2013.04.001

Chen, M., Liu, H., Wei, S., & Gu, J. (2018). Top managers’ managerial ties, supply chain integration, and firm performance in China: A social capital perspective. Industrial Marketing Management, 74(January), 205–214. https://doi.org/10.1016/j.indmarman.2018.04.013

Correia, R. J., Dias, J. G., & Teixeira, M. S. (2020). Dynamic capabilities and competitive advantages as mediator variables between market orientation and business performance. Journal of Strategy and Management, 14(2), 187–206. https://doi.org/10.1108/JSMA-12-2019-0223

Curado, C. (2006). The knowledge based-view of the firm: From theoretical origins to future implications. Igarss, 1, 1–5.

Dixit, S., Singh, S., Dhir, S., & Dhir, S. (2021). Antecedents of strategic thinking and its impact on competitive advantage. Journal of Indian Business Research, 13(4). https://doi.org/10.1108/JIBR-08-2020-0262

Dong, H., Guo, J., Chen, T., & Murong, R. (2023). Configuration research on innovation performance of digital enterprises: Based on an open innovation and knowledge perspective. Frontiers in Environmental Science, 10, 1–13. https://doi.org/10.3389/fenvs.2022.953902

Enkel, E., Groemminger, A., & Heil, S. (2018). Managing technological distance in internal and external collaborations: Absorptive capacity routines and social integration for innovation. Journal of Technology Transfer, 43(5), 1257–1290. https://doi.org/10.1007/s10961-017-9557-0

Fadaee, A. (2014). Explaining the relationship between creativity, innovation and entrepreneurship. International Journal of Economy, Management and Social Sciences, 3(12), 1–4.

Ferreira, J., & Coelho, A. (2020). Dynamic capabilities, innovation and branding capabilities and their impact on competitive advantage and SME’s performance in Portugal: The moderating effects of entrepreneurial orientation. International Journal of Innovation Science, 12(3), 255–286. https://doi.org/10.1108/IJIS-10-2018-0108

Ghozali, I. (2021). Partial Least Squares Konsep, Teknik dan Aplikasi Menggunakan SmartPLS 3.2.9 Untuk Penelitian Empiris (3rd ed.). Badan Penerbit Universitas Diponegoro.

Grant, R. M. (1997). The knowledge-based view of the firm: Implications for management practice. Long Range Planning, 30(3), 450–454. https://doi.org/10.1016/S0024-6301(97)00025-3

Gu, F. F., Hung, K., & Tse, D. K. (2008). When does Guanxi matter? Issues of capitalization and its dark sides. Journal of Marketing, 72(4), 12–28. https://doi.org/10.1509/jmkg.72.4.12

Guan, J., & Liu, N. (2016). Exploitative and exploratory innovations in knowledge network and collaboration network: A patent analysis in the technological field of nano-energy. Research Policy, 45(1), 97–112. https://doi.org/10.1016/j.respol.2015.08.002

Guo, H., Tang, J., & Wei, Z. (2020). How managerial ties impact opportunity discovery in a transition economy? Evidence from China. Management Decision, 58(2), 344–361. https://doi.org/10.1108/MD-02-2019-0270

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203

Hoang, H., & Antoncic, B. (2003). Network-based research in entrepreneurship: A critical review. Journal of Business Venturing, 18(2), 165–187. https://doi.org/10.1016/S0883-9026(02)00081-2

Huang, J. W., & Li, Y. H. (2017). Green innovation and performance: The view of organizational capability and social reciprocity. Journal of Business Ethics, 145(2), 309–324. https://doi.org/10.1007/s10551-015-2903-y

Hunitie, M. (2018). Impact of strategic leadership on strategic competitive advantage through strategic thinking and strategic planning: A bi-meditational research. Business: Theory and Practice, 19, 322–330. https://doi.org/10.3846/btp.2018.32

Jyoti, J., & Dev, M. (2015). The impact of transformational leadership on employee creativity: The role of learning orientation. Journal of Asia Business Studies, 9(1), 78–98. https://doi.org/10.1108/JABS-03-2014-0022

Kaawaase, T. K., Bananuka, J., Peter Kwizina, T., & Nabaweesi, J. (2020). Intellectual capital and performance of small and medium audit practices: The interactive effects of professionalism. Journal of Accounting in Emerging Economies, 10(2), 165–189. https://doi.org/10.1108/JAEE-03-2018-0032

Kathiravan, C., Bhagavatham, P., Palanisamy, V., & Rajasekar, A. (2019). Influence of entrepreneurial creativity on competitive advantage in automobile engineering and technologies industries. International Journal of Advanced Science and Technology, 27(1), 166–172.

Kemenkopukm. (2019). Kementerian Koperasi dan Usaha Kecil dan Menengah. https://kemenkopukm.go.id/kumkm-dalam-angka/?type=indikator-umkm&sub=0

Kianto, A., Shujahat, M., Hussain, S., Nawaz, F., & Ali, M. (2019). The impact of knowledge management on knowledge worker productivity. Baltic Journal of Management, 14(2), 178–197. https://doi.org/10.1108/BJM-12-2017-0404

Koch, A. (2011). Firm-internal knowledge integration and the effects on innovation. Journal of Knowledge Management, 15(6), 984–996. https://doi.org/10.1108/13673271111179325

Kogut, B., & Zander, U. (1992). Knowledge of the firm. Combinative capabilities, and the replication of technology. Organization Science, 3(3), 383–397. https://doi.org/10.1287/orsc.3.3.383

Lee, S., & Kim, B. G. (2017). The impact of qualities of social network service on the continuance usage intention. Management Decision, 55(4), 701–729. https://doi.org/10.1108/MD-10-2016-0731

Lee, T. (2019). Management ties and firm performance: Influence of family governance. Journal of Family Business Strategy, 10(2), 105–118. https://doi.org/10.1016/j.jfbs.2018.12.003

Lee, T., & Lin, J. Y. (2023). A socioemotional wealth and social capital perspective on demonstrating how government ties and cooperation affect the entrepreneurship of family firms. Technology Analysis and Strategic Management. https://doi.org/10.1080/09537325.2023.2250017

Leiponen, A. (2006). Managing knowledge for innovation: The case of business-to-business services. Journal of Product Innovation Management, 23(3), 238–258. https://doi.org/10.1111/j.1540-5885.2006.00196.x

Li, J. J., Poppo, L., & Zhou, K. Z. (2008). Do managerial ties in China always produce value? Competition, uncertainty, and domestic VS. foreign firms. Strategic Management Journal, 29(4), 383–400. https://doi.org/10.1002/smj.665

Li, J. J., Zhou, K. Z., & Shao, A. T. (2009). Competitive position, managerial ties, and profitability of foreign firms in China: An interactive perspective. Journal of International Business Studies, 40(2), 339–352. https://doi.org/10.1057/jibs.2008.76

Li, J., Xia, J., & Zajac, E. J. (2018). On the duality of political and economic stakeholder influence on firm innovation performance: Theory and evidence from Chinese firms. Strategic Management Journal, 39(1), 193–216. https://doi.org/10.1002/smj.2697

Li, M. S., Li, J., Li, J. M., Liu, Z. W., & Deng, X. T. (2023). The Impact of team learning climate on innovation performance – mediating role of knowledge integration capability. Frontiers in Psychology, 13, 1–12. https://doi.org/10.3389/fpsyg.2022.1104073

Liu, C. H. (Sam). (2020). Creating competitive advantage through network ties, entrepreneurial orientation and intellectual capital. Management Decision, 59(9), 2238–2263. https://doi.org/10.1108/MD-02-2020-0191

Liu, C. H. S. (2018). Examining social capital, organizational learning and knowledge transfer in cultural and creative industries of practice. Tourism Management, 64, 258–270. https://doi.org/10.1016/j.tourman.2017.09.001

Liu, J., Yang, X., & Sheng, S. (2023). Social ties and new venture performance: The moderated mediating effects of entrepreneurial motivations. IEEE Transactions on Engineering Management, 71, 1–14. https://doi.org/10.1109/TEM.2022.3232584

Low, K. Y. J., & Ho, E. Y. C. (2016). A knowledge-based theory of the multinational economic organization. Long Range Planning, 49(6), 641–647. https://doi.org/10.1016/j.lrp.2015.12.004

Madžar, D., & Milohnić, I. (2019). Improving business competitiveness based on managing creativity system. Ekonomska Misao i Praksa, 1, 193–208.

Mokhtarzadedeh, N. G., Jafarpanah, I., & Babgohari, A. Z. (2022). Knowledge management capability, entrepreneurial creativity, entrepreneurial intensity and firm performance: The mediating role of ambidexterity. British Food Journal, 124(7), 2179–2208. https://doi.org/10.1108/BFJ-08-2021-0942

Nonaka, I. (1994). A dynamic theory of organizational knowledge creation. Organization Science, 5(1). https://doi.org/10.1287/orsc.5.1.14

Novitasari, M., & Agustia, D. (2023). Competitive advantage as a mediating effect in the impact of green innovation and firm performance. Business: Theory and Practice, 24(1), 216–226. https://doi.org/10.3846/btp.2023.15865

Ozer, M., & Zhang, W. (2014). The effects of geographic and network ties on exploitative and exploratory product innovation. Strategic Management Journal, 36(7), 1105–1114. https://doi.org/10.1002/smj.2263

Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. The Free Press.

Pusung, C. S., Narsa, N. P. D. R. H., & Wardhaningrum, O. A. (2023). Innovation, competitive strategy and MSME performance: A survey study on culinary SMEs in Indonesia during the Covid-19 pandemic. Business: Theory and Practice, 24(1), 160–172. https://doi.org/10.3846/btp.2023.16676

Roos, G., Bainbridge, A., & Jacobsen, K. (2001). Intellectual capital analysis as a strategic tool. Strategy & Leadership, 29(4), 21–26. https://doi.org/10.1108/10878570110400116

Safari, A., Adelpanah, A., Soleimani, R., Heidari Aqagoli, P., Eidizadeh, R., & Salehzadeh, R. (2020). The effect of psychological empowerment on job burnout and competitive advantage: The mediating role of organizational commitment and creativity. Management Research, 18(1), 47–71. https://doi.org/10.1108/MRJIAM-06-2019-0935

Sami, P., Rahnavard, F., & Alavi Tabar, A. (2019). The effect of political and business ties on firm performance: The mediating role of product innovation. Management Research Review, 42(7), 778–796. https://doi.org/10.1108/MRR-12-2017-0439

Shahab, Y., Chengang, Y., Arbizu, A. D., & Haider, M. J. (2019). Entrepreneurial self-efficacy and intention: Do entrepreneurial creativity and education matter? International Journal of Entrepreneurial Behaviour and Research, 25(2), 259–280. https://doi.org/10.1108/IJEBR-12-2017-0522

Sheng, S., Zhou, K. Z., & Li, J. J. (2011). The effects of business and political ties on firm performance: Evidence from China. Journal of Marketing, 75(1), 1–15. https://doi.org/10.1509/jm.75.1.1

Singh, S., & Dhir, S. (2021). Modified total interpretive structural modelling of innovation implementation antecedents. International Journal of Productivity and Performance Management, 71(4). https://doi.org/10.1108/IJPPM-05-2020-0239

Teece, D. J. (2000). Strategies for managing knowledge assets: The role of firm structure and industrial context. Long Range Planning, 33(1), 35–54. https://doi.org/10.1016/S0024-6301(99)00117-X

Tripathi, N., & Ghosh, V. (2020). Deep-level diversity and workgroup creativity: The role of creativity climate. Journal of Indian Business Research, 12(4), 605–624. https://doi.org/10.1108/JIBR-01-2019-0007

Veitch, W. R., & Roscoe, J. T. (1974). Homogeneity of variance: An empirical comparison of 4 statistical tests. Journal of Experimental Education, 43(2), 73–78. https://doi.org/10.1080/00220973.1974.10806323

Wiklund, J., & Shepherd, D. (2003). Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium-sized businesses. Strategic Management Journal, 24(13), 1307–1314. https://doi.org/10.1002/smj.360

Wincent, J., Anokhin, S., Örtqvist, D., & Autio, E. (2010). Quality meets structure: Generalized reciprocity and firm-level advantage in strategic networks. Journal of Management Studies, 47(4), 597–624. https://doi.org/10.1111/j.1467-6486.2009.00882.x

Woodman, R. W., Sawyer, J. E., & Griffin, R. W. (1993). Toward a theory of organizational creativity. Academy of Management Review, 18(2), 293–321. https://doi.org/10.5465/amr.1993.3997517

Wu, J., & Chen, X. (2012). Leaders’ social ties, knowledge acquisition capability and firm competitive advantage. Asia Pacific Journal of Management, 29(2), 331–350. https://doi.org/10.1007/s10490-011-9278-0

Xi, Y., Wang, X., & Zhu, Y. (2020). Organizational unlearning and knowledge transfer in cross-border M&As: The mediating role of knowledge integration from a routine-based view. Journal of Knowledge Management, 24(4), 841–860. https://doi.org/10.1108/JKM-08-2019-0419

Xu, J., Yu, Y., Zhang, M., Eltantawy, R., Zhang, J. Z., & Hu, L. (2023). Political ties and information technology: Untangling their impact on supply chain social responsibility and sustainable performance. Journal of Purchasing and Supply Management, 29(5), Article 100879. https://doi.org/10.1016/j.pursup.2023.100879

Yang, M., Wang, J., & Yang, J. (2021). Boundary-spanning search, knowledge integration capability and sustainable competitive advantage. Baltic Journal of Management, 16(3), 446–464. https://doi.org/10.1108/BJM-08-2020-0314

Ying, Q., Hassan, H., & Ahmad, H. (2019). The role of a manager’s intangible capabilities in resource acquisition and sustainable competitive performance. Sustainability (Switzerland), 11(2), Article 527. https://doi.org/10.3390/su11020527

Zhang, H., & Xu, J. (2018). Research on design strategy of experience marketing in shared economy. In Proceedings of IEEE International Conference on Applied System Innovation (pp. 74–79). IEEE. https://doi.org/10.1109/ICASI.2018.8394408

Zhang, J. A., O’Kane, C., & Chen, G. (2020). Business ties, political ties, and innovation performance in Chinese industrial firms: The role of entrepreneurial orientation and environmental dynamism. Journal of Business Research, 121, 254–267. https://doi.org/10.1016/j.jbusres.2020.08.055

Zhang, J., Tan, J., & Wong, P. K. (2015). When does investment in political ties improve firm performance? The contingent effect of innovation activities. Asia Pacific Journal of Management, 32(2), 363–387. https://doi.org/10.1007/s10490-014-9402-z

Zhao, S. N., & Timothy, D. J. (2015). Governance of red tourism in China: Perspectives on power and guanxi. Tourism Management, 46, 489–500. https://doi.org/10.1016/j.tourman.2014.08.011