Perceived value of microfinance and SME performance: The role of exploratory innovation

This study examines how perceived value of microfinance and exploratory innovation affect small and medium-sized enterprises(SME)performance in the context of a developing nation.Drawing on the strategic innovation and microfinance literature,we hypothesize that(1)perceived value of microfinance affects exploratory innovation and SME performance,and(2)exploratory innovation serves as an effective mechanism through which microfinance enhances SME per-formance.We employ partial least squares structural equation modeling(PLS-SEM)to test our hypotheses.Using a sample of 581 Ghanaian SMEs with microfinance,the results of the PLS SEM support our hypotheses.We further conducted a qualitative analysis of comments provided by the SMEs(n=144)to gain a deeper understanding of exploratory innovation in developing econo-mies.Our findings show that SMEs purposefully attempt to strengthen their exploratory inno-vation in microfinance.We discuss the theoretical and practical implications of these findings as well as future research avenues.

EFFECTS OF COLLABORATION NETWORKS ON TECHNOLOGY INNOVATION IN THE SOLAR PHOTOVOLTAIC(PV)SECTOR:A CASE STUDY OF CHINA

Efficient use of energy is an essential aspect of green building development.In order to achieve a more energy efficient society,innovation of solar photovoltaic(PV)technologies is a necessity.Collaboration between innovators is regarded as important for innovation;however,the existing literature has made few attempts to investigate how a collaboration network can affect technology innovation in the context of the solar PV sector.This study aims to fill this research gap.In this study,innovation activities are categorized as exploratory innovation and exploitative innovation.A conceptual framework and a series of hypotheses are proposed from the perspectives of network structure(including direct ties,indirect ties,and network efficiency)and network composition(such as geographical proximity,institutional proximity,and technological proximity).The empirical results show that in the solar PV sector of China,collaboration networks with different kinds of structure and composition can imply diverse effects on exploratory innovation and exploitative innovation.Followed with the derived results,it can be concluded that network collaboration is not always beneficial for PV technology innovation.The research findings could convey useful information to both practitioners and policy-makers to adopt appropriate strategies for promoting effective innovation collaboration.