Innovativeness: Its Antecedents and Impact on SME Business Performance

In this study, three research questions are addressed: (1) What effects do organizational orientations (i.e. social capital orientation, market orientation and entrepreneurial orientation) have on innovativeness? (2) What effect does innovativeness has on business performance? (3) To what extent innovativeness mediate relationship between organizational orientations and business performance? Resource Based View (RBV) was applied to not only to develop key antecedents to innovativeness, such as social capital orientation, market orientation and entrepreneurial orientation, but also the relationship between innovativeness and business performance. Findings confirm the validity of the model. It also indicates innovativeness, appears to be a key mediator in the web of relationships among organizational orientations and business performance. Lastly, implications are offered on the antecedents and consequences of innovativeness.