Triple Helix Innovation Ecosystem: The Role of Small and Medium Enterprises Community in Enhancing Performance
Abstract
Purpose: This study seeks to reveal the relationship between the triple helix innovation ecosystem and Small and Medium Enterprises (SMEs’) performance and the role of the SME community as the mediator between the triple helix innovation ecosystem and SMEs’ performance.
Methodology/Approach: This study uses a quantitative approach. Data were collected using an online questionnaire from 386 SME managers who are members of the SME community in Malang Regency, East Java, Indonesia. SEM-PLS was used to analyse the data to examine the relationship of three latent variables: triple helix ecosystem, SME community, and SMEs’ performance.
Findings: The triple helix ecosystem in this study was the collaboration of three agents, namely the government, large companies, and universities. This study proves that the triple helix ecosystem innovation is positively and significantly related to the performance of SMEs. Another important finding is that the SME community partially mediates the triple helix innovation ecosystem relationship and SME performance. The SME community has a strategic role in the triple helix agents intervention process to improve the performance of SMEs.
Research Limitation/Implication: The data were collected through an online questionnaire so that it could not reveal the process of operational interventions of triple helix agents to improve SMEs’ performance. The performance of SMEs did not measure internal business processes, such as the presence of technology in processes, product development, and time savings.
Originality/Value of paper: This research contributes to the literature through triple helix analysis as an ecosystem in improving the performance of SMEs.
References
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Falahat, M., Ramayah, T., Soto-Acosta, P. and Lee, Y.Y., 2020. SMEs internationalization: The role of product innovation, market intelligence, pricing and marketing communication capabilities as drivers of SMEs' international performance. Technological Forecasting and Social Change, [e-journal] 152(November), 119908. DOI: 10.1016/j.techfore.2020.119908.
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Gerschewski, S., Evers, N. and Nguyen, A.T., 2020. Trade Shows and SME Internationalisation: Networking for Performance. Management International Review, [e-journal] 60, pp.573-595. DOI: 10.1007/s11575-020-00421-y.
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Guerrero, M. and Urbano, D., 2017. The impact of Triple Helix agents on entrepreneurial innovations' performance: an inside look at enterprises located in an emerging economy. Technology Forecast & Social Change, [e-journal] 119, pp.294-309. DOI: 10.1016/j.techfore.2016.06.015.
Hair, J.F., Hult, G.T.M., Ringle, C.M. and Sarstedt, M., 2014. A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Washington: Sage Publications.
Hamidah, R.A., Alam, A., Wijayanti, D. and Nurrahmhan, A., 2021. The Role of the Muslim Entrepreneur Community in Sharia Business Amid the Covid-19 Pandemic (Case Study: Jogja Muslimah Preneur). BISNIS: Jurnal Bisnis dan Manajemen Islam, [e-journal] 9(2), pp. 225-252. DOI: 0.21043/bisnis.v9i2.11914.
Harwiki, W. and Malet, C., 2020. Quintuple helix and innovation on performance of SMEs within ability of SMEs as a mediator variable: A comparative study of creative industry in Indonesia and Spain. Management Science Letters, [e-journal] 10(6), pp.1389-1400. DOI: 10.5267/j.msl.2019.11.018.
Kock, N., 2015. WarpPLS 5.0 User Manual. Texas: Laredo, ScriptWarp SystemsTM.
Lew, Y.K. and Park, J.Y., 2021. The evolution of N‐helix of the regional innovation system: Implications for sustainability. Sustainable Development, [e-journal] 29(2), pp.453-464. DOI: 10.1002/sd.2143.
Lin, F.-J. and Lin, Y.-H., 2016. The effect of network relationship on the performance of SMEs. Journal of Business Research, [e-journal] 69(5), pp.1780-1784. DOI: 10.1016/j.jbusres.2015.10.055.
Maziriri, E.T., Mapuranga, M. and Lose, T., 2021. Are Triple Helix Agents the Answer for Promoting SME Development? Invigorating Innovation and Enhancing Performance of SMEs in South Africa. Journal of Critical Review, [e-journal] 8(1), pp.880-901. DOI: 10.31838/jcr.08.01.98.
Nam, V.H., 2014. The roles of human and social capital in the development of manufacturing SMEs in Vietnam. Journal of Economics and Development, [e-journal] 16(1), pp.5-22. DOI: 10.33301/2014.16.01.01.
Newman, A., Prajogo, D. and Atherton, A., 2016. The influence of market orientation on innovation strategies. Journal of Service Theory and Practice, [e-journal] 26(1), pp.72-90. DOI: 10.1108/JSTP-02-2015-0044.
Pfeffer, J. and Salancik, G.R., 1978. A resource dependence perspective. In Intercorporate relations. The structural analysis of business. Cambridge: Cambridge University Press.
Ribero, S.X. and Nagano, M.S., 2022. Benefits of New University-Business-Government Arrangements for the Performance of Organizations: A Triple Helix Approach. In Contextual Strategic Entrepreneurship. In: N. Faghih and A. Forouharfar, eds. 2022. Contextual Strategic Entrepreneurship. Contributions to Management Science. Cham: Springer. pp.173-190. DOI: 10.1007/978-3-030-86028-8_10.
Rupčić, N., Majić, T. and Stjepandić, J., 2020. Emergence of Business Ecosystems by Transformation of Platforms Through the Process of Organizational Learning. Journal of Industrial Integration and Management, [e-journal] 5(2), pp.181-203. DOI: 10.1142/S2424862220500086.
Ryan, P., Evers, N., Smith, A. and Andersson, S., 2018. Local horizontal network membership for accelerated global market reach. International Marketing Review, [e-journal] 36(1), pp.6-30. DOI: 10.1108/IMR-03-2017-0061.
Ryan, P., Geoghegan, W. and Hilliard, R., 2018. The microfoundations of firms' explorative innovation capabilities within the triple helix framework. Technovation, [e-journal] 76, pp.15-27. DOI: 10.1016/j.technovation.2018.02.016.
Schroth, F. and Häußermann, J.J., 2018. Collaboration strategies in innovation ecosystems: An empirical study of the German microelectronics and photonics industries. Technology Innovation Management Review, [e-journal] 8(11), pp.4-12. DOI: 10.22215/timreview/1195.
Sholihin, M. and Ratmono, D., 2013. SEM-PLS Analysis with WarpPLS 3.0 for Nonlinear Relationships in Social and Business Research. Yogyakarta: Penerbit ANDI.
Sun, Y., Li, L., Chen, Y. and Kataev, M.Y., 2021. An empirical study on innovation ecosystem, technological trajectory transition, and innovation performance. Journal of Global Information Management (JGIM), [e-journal] 29(4), pp.148-171. DOI: 10.4018/JGIM.20210701.oa7.
Taneo, S.Y.M, Noya, S., Melany, M. and Setiyati, E.A., 2020. Disruptive Innovation: Strategies to Win Business. Yogyakarta: Penerbit ANDI.
Taneo, S.Y.M., Noya, S., Melany, M. and Setiyati, E.A., 2022. The Role of Local Government in Improving Resilience and Performance of Small and Medium-Sized Enterprises in Indonesia. The Journal of Asian Finance, Economics and Business, [e-journal] 9(3), pp.245-256. DOI: 10.13106/jafeb.2022.vol9.no3.0245.
Thornhill, J. 2019. Prizes are a powerful spur to innovation and breakthroughs. Financial Times. [online] Available at: [Accessed 15 September 2022].
Tubagus, I., 2018. Building innovation capability through triple helix model sinergy to improve SME's marketing performance. International Journal of Civil Engineering and Technology, 9(7), pp.1403-1412.
Ueasangkomsate, P. and Jangkot, A., 2017. Enhancing the innovation of small and medium enterprises in food manufacturing through Triple Helix Agents. Kasetsart Journal of Social Sciences, [e-journal] 40(2), pp.380-388. DOI: 10.1016/j.kjss.2017.12.007.
Wang, G., Dou, W., Zhu, W., and Zhou, N., 2015. The effects of firm capabilities on external collaboration and performance: The moderating role of market turbulence. Journal of Business Research, [e-journal] 68(9), pp.1928-1936. DOI: 10.1016/j.jbusres.2015.01.002.
Wood, E.H., 2006. The internal predictors of business performance in small firms: A logistic regression analysis. Journal of Small Business and Enterprise Development, [e-journal] 13(3), pp.441-453. DOI: 10.1108/14626000610680299.
Yıldız, S., Baştürk, F. and Boz, İ.T., 2014. The Effect of Leadership and Innovativeness on Business Performance. Procedia - Social and Behavioral Sciences, [e-journal] 150, pp.785-793. DOI: 10.1016/j.sbspro.2014.09.064.
Yoon, J. and Park, H.W., 2017. Triple helix dynamics of South Korea's innovation system: a network analysis of inter-regional technological collaborations. Quality & Quantity, [e-journal] 51(3), pp.989-1007. DOI: 10.1007/s11135-016-0346-x.
Zhang, Y., Chen, K. and Fu, X., 2019. Scientific effects of Triple Helix interactions among research institutes, industries and universities. Technovation, [e-journal] 86, pp.33-47. DOI: 10.1016/j.technovation.2019.05.003.
Zulu-Chisanga, S., Chabala, M. and Mandawa-Bray, B., 2021. The differential effects of government support, inter-firm collaboration, and firm resources on SME performance in a developing economy. Journal of Entrepreneurship in Emerging Economies, [e-journal] 13(2), pp.175-195. DOI: 10.1108/JEEE-07-2019-0105.
Afriyie, S., Du, J. and Ibn Musah, A.A., 2019. Innovation and marketing performance of SME in an emerging economy: the moderating effect of transformational leadership. Journal of Global Entrepreneurship Research, [e-journal] 9(40), pp.1-25. DOI: 10.1186/s40497-019-0165-3.
Al-Badi, A. and Al-Qayoudhi, W., 2014. Adoption of Social Networks in Business: Study of Users and Potential – Users in Oman. International Business and Economics Research Journal, [e-journal] 13(2), pp.401-418. DOI: 10.19030/iber.v13i2.8457.
Andersson, U., Forsgren, M. and Holm, U., 2002. The strategic impact of external networks: Subsidiary performance and competence development in the multinational corporation. Strategic Management Journal, [e-journal] 23(11), pp.979-996. DOI: 10.1002/smj.267.
Bappenas (Badan Perencanaan Pembangunan Nasional), 2020. Review of Policies for Mitigating the Impact of COVID-19 on MSMEs: Recovery Survey for Indonesian MSMEs. [online] Available at:
Benitez, G.B., Ayala, N.F. and Frank, A.G., 2020. Industry 4.0 innovation ecosystems: An evolutionary perspective on value cocreation. International Journal of Production Economics, [e-journal] 228 (March), 107735. DOI: 10.1016/j.ijpe.2020.107735.
Chege, S.M. and Wang, D., 2020. The influence of technology innovation on SME performance through environmental sustainability practices in Kenya. Technology in Society, [e-journal] 60, 101210. DOI: 10.1016/j.techsoc.2019.101210.
Chesbrough, H., 2003. The era of open innovation. MIT Sloan Management Review, 44(3), pp.35-41.
Cruz-Ros, S., Guerrero-Sánchez, D.L. and Miquel-Romero, M.J., 2021. Absorptive capacity and its impact on innovation and performance: findings from SEM and fsQCA'. Review of Managerial Science, [e-journal] 15(2), pp.235-249. DOI: 10.1007/s11846-018-0319-7.
Dhewanto, W., Herliana, S., Yunita, F., Nur Rizqi, V. and Williamson, I.O., 2021. Quadruple helix approach to achieve international product quality for Indonesian food SMEs. Journal of the Knowledge Economy, [e-journal] 12(2), pp.452-469. DOI: 10.1007/s13132-020-00644-2.
Ebrahimi, P., Shafiee, B., Gholampour, A. and Yousefi, L. 2018. Impact of organizational innovation, learning orientation and entrepreneurship on SME performance: The moderating role of market turbulence and ICT. In: D. Khajeheian, M. Friedrichsen and W. Mödinger, eds. 2018. Competitiveness in Emerging Markets. Contributions to Management Science. Cham: Springer. Pp.447-480. DOI: 10.1007/978-3-319-71722-7_23.
Elvekrok, I., Veflen, N., Nilsen, E.R. and Gausdal, A.H., 2017. Firm innovation benefits from regional triple-helix networks. Regional Studies, [e-journal] 52(9), pp.1214-1224. DOI: 10.1080/00343404.2017.1370086.
Etzkowitz, H. and Dzisah, J., 2008. Rethinking development: circulation in the triple helix. Technology Analysis & Strategic Management, [e-journal] 20(6), pp.653-666. DOI: 10.1080/09537320802426309.
Etzkowitz, H. and Leydesdorff, L., 1995. The Triple Helix -University-Industry-Government Relations: A Laboratory for Knowledge Based Economic Development. EASST Review, 14(1), pp.14-19.
Etzkowitz, H., 2003. Innovation in Innovation: The Triple Helix of University-Industry-Government Relations. Social Science Information, [e-journal] 42(3), pp.293-337. DOI: 10.1177/05390184030423002.
Falahat, M., Ramayah, T., Soto-Acosta, P. and Lee, Y.Y., 2020. SMEs internationalization: The role of product innovation, market intelligence, pricing and marketing communication capabilities as drivers of SMEs' international performance. Technological Forecasting and Social Change, [e-journal] 152(November), 119908. DOI: 10.1016/j.techfore.2020.119908.
Franco, M., Haase, H. and Pereira, A., 2016. Empirical study about the role of social networks in SME performance. Journal of Systems and Information Technology, [e-journal] 18(4), pp.383-403. DOI: 10.1108/JSIT-06-2016-0036.
Gerschewski, S., Evers, N. and Nguyen, A.T., 2020. Trade Shows and SME Internationalisation: Networking for Performance. Management International Review, [e-journal] 60, pp.573-595. DOI: 10.1007/s11575-020-00421-y.
Gronum, S., Verreynne, M. and Kastelle, T., 2012. The Role of Networks in Small and Medium-Sized Enterprise Innovation and Firm Performance. Journal of Small Business Management, [e-journal] 50(2), pp.257-282. DOI: 10.1111/j.1540-627X.2012.00353.x.
Guerrero, M. and Urbano, D., 2017. The impact of Triple Helix agents on entrepreneurial innovations' performance: an inside look at enterprises located in an emerging economy. Technology Forecast & Social Change, [e-journal] 119, pp.294-309. DOI: 10.1016/j.techfore.2016.06.015.
Hair, J.F., Hult, G.T.M., Ringle, C.M. and Sarstedt, M., 2014. A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Washington: Sage Publications.
Hamidah, R.A., Alam, A., Wijayanti, D. and Nurrahmhan, A., 2021. The Role of the Muslim Entrepreneur Community in Sharia Business Amid the Covid-19 Pandemic (Case Study: Jogja Muslimah Preneur). BISNIS: Jurnal Bisnis dan Manajemen Islam, [e-journal] 9(2), pp. 225-252. DOI: 0.21043/bisnis.v9i2.11914.
Harwiki, W. and Malet, C., 2020. Quintuple helix and innovation on performance of SMEs within ability of SMEs as a mediator variable: A comparative study of creative industry in Indonesia and Spain. Management Science Letters, [e-journal] 10(6), pp.1389-1400. DOI: 10.5267/j.msl.2019.11.018.
Kock, N., 2015. WarpPLS 5.0 User Manual. Texas: Laredo, ScriptWarp SystemsTM.
Lew, Y.K. and Park, J.Y., 2021. The evolution of N‐helix of the regional innovation system: Implications for sustainability. Sustainable Development, [e-journal] 29(2), pp.453-464. DOI: 10.1002/sd.2143.
Lin, F.-J. and Lin, Y.-H., 2016. The effect of network relationship on the performance of SMEs. Journal of Business Research, [e-journal] 69(5), pp.1780-1784. DOI: 10.1016/j.jbusres.2015.10.055.
Maziriri, E.T., Mapuranga, M. and Lose, T., 2021. Are Triple Helix Agents the Answer for Promoting SME Development? Invigorating Innovation and Enhancing Performance of SMEs in South Africa. Journal of Critical Review, [e-journal] 8(1), pp.880-901. DOI: 10.31838/jcr.08.01.98.
Nam, V.H., 2014. The roles of human and social capital in the development of manufacturing SMEs in Vietnam. Journal of Economics and Development, [e-journal] 16(1), pp.5-22. DOI: 10.33301/2014.16.01.01.
Newman, A., Prajogo, D. and Atherton, A., 2016. The influence of market orientation on innovation strategies. Journal of Service Theory and Practice, [e-journal] 26(1), pp.72-90. DOI: 10.1108/JSTP-02-2015-0044.
Pfeffer, J. and Salancik, G.R., 1978. A resource dependence perspective. In Intercorporate relations. The structural analysis of business. Cambridge: Cambridge University Press.
Ribero, S.X. and Nagano, M.S., 2022. Benefits of New University-Business-Government Arrangements for the Performance of Organizations: A Triple Helix Approach. In Contextual Strategic Entrepreneurship. In: N. Faghih and A. Forouharfar, eds. 2022. Contextual Strategic Entrepreneurship. Contributions to Management Science. Cham: Springer. pp.173-190. DOI: 10.1007/978-3-030-86028-8_10.
Rupčić, N., Majić, T. and Stjepandić, J., 2020. Emergence of Business Ecosystems by Transformation of Platforms Through the Process of Organizational Learning. Journal of Industrial Integration and Management, [e-journal] 5(2), pp.181-203. DOI: 10.1142/S2424862220500086.
Ryan, P., Evers, N., Smith, A. and Andersson, S., 2018. Local horizontal network membership for accelerated global market reach. International Marketing Review, [e-journal] 36(1), pp.6-30. DOI: 10.1108/IMR-03-2017-0061.
Ryan, P., Geoghegan, W. and Hilliard, R., 2018. The microfoundations of firms' explorative innovation capabilities within the triple helix framework. Technovation, [e-journal] 76, pp.15-27. DOI: 10.1016/j.technovation.2018.02.016.
Schroth, F. and Häußermann, J.J., 2018. Collaboration strategies in innovation ecosystems: An empirical study of the German microelectronics and photonics industries. Technology Innovation Management Review, [e-journal] 8(11), pp.4-12. DOI: 10.22215/timreview/1195.
Sholihin, M. and Ratmono, D., 2013. SEM-PLS Analysis with WarpPLS 3.0 for Nonlinear Relationships in Social and Business Research. Yogyakarta: Penerbit ANDI.
Sun, Y., Li, L., Chen, Y. and Kataev, M.Y., 2021. An empirical study on innovation ecosystem, technological trajectory transition, and innovation performance. Journal of Global Information Management (JGIM), [e-journal] 29(4), pp.148-171. DOI: 10.4018/JGIM.20210701.oa7.
Taneo, S.Y.M, Noya, S., Melany, M. and Setiyati, E.A., 2020. Disruptive Innovation: Strategies to Win Business. Yogyakarta: Penerbit ANDI.
Taneo, S.Y.M., Noya, S., Melany, M. and Setiyati, E.A., 2022. The Role of Local Government in Improving Resilience and Performance of Small and Medium-Sized Enterprises in Indonesia. The Journal of Asian Finance, Economics and Business, [e-journal] 9(3), pp.245-256. DOI: 10.13106/jafeb.2022.vol9.no3.0245.
Thornhill, J. 2019. Prizes are a powerful spur to innovation and breakthroughs. Financial Times. [online] Available at:
Tubagus, I., 2018. Building innovation capability through triple helix model sinergy to improve SME's marketing performance. International Journal of Civil Engineering and Technology, 9(7), pp.1403-1412.
Ueasangkomsate, P. and Jangkot, A., 2017. Enhancing the innovation of small and medium enterprises in food manufacturing through Triple Helix Agents. Kasetsart Journal of Social Sciences, [e-journal] 40(2), pp.380-388. DOI: 10.1016/j.kjss.2017.12.007.
Wang, G., Dou, W., Zhu, W., and Zhou, N., 2015. The effects of firm capabilities on external collaboration and performance: The moderating role of market turbulence. Journal of Business Research, [e-journal] 68(9), pp.1928-1936. DOI: 10.1016/j.jbusres.2015.01.002.
Wood, E.H., 2006. The internal predictors of business performance in small firms: A logistic regression analysis. Journal of Small Business and Enterprise Development, [e-journal] 13(3), pp.441-453. DOI: 10.1108/14626000610680299.
Yıldız, S., Baştürk, F. and Boz, İ.T., 2014. The Effect of Leadership and Innovativeness on Business Performance. Procedia - Social and Behavioral Sciences, [e-journal] 150, pp.785-793. DOI: 10.1016/j.sbspro.2014.09.064.
Yoon, J. and Park, H.W., 2017. Triple helix dynamics of South Korea's innovation system: a network analysis of inter-regional technological collaborations. Quality & Quantity, [e-journal] 51(3), pp.989-1007. DOI: 10.1007/s11135-016-0346-x.
Zhang, Y., Chen, K. and Fu, X., 2019. Scientific effects of Triple Helix interactions among research institutes, industries and universities. Technovation, [e-journal] 86, pp.33-47. DOI: 10.1016/j.technovation.2019.05.003.
Zulu-Chisanga, S., Chabala, M. and Mandawa-Bray, B., 2021. The differential effects of government support, inter-firm collaboration, and firm resources on SME performance in a developing economy. Journal of Entrepreneurship in Emerging Economies, [e-journal] 13(2), pp.175-195. DOI: 10.1108/JEEE-07-2019-0105.
Authors
Noya, S., Taneo, S. Y., & Melany, M. (2023). Triple Helix Innovation Ecosystem: The Role of Small and Medium Enterprises Community in Enhancing Performance. Quality Innovation Prosperity, 27(1), 46–61. https://doi.org/10.12776/qip.v27i1.1759
This work is licensed under a Creative Commons Attribution 4.0 International License.