Home Business & Economics 14 Modelling the Collaborative Advantage of SMEs in Pursuit of Competitiveness: An Emerging Economy Case
Chapter
Licensed
Unlicensed Requires Authentication

14 Modelling the Collaborative Advantage of SMEs in Pursuit of Competitiveness: An Emerging Economy Case

  • Agus Syarip Hidayat and Wee Ching Pok
Become an author with De Gruyter Brill
Explore this Subject How to publish with us
De Gruyter Handbook of SME Entrepreneurship
This chapter is in the book De Gruyter Handbook of SME Entrepreneurship

Abstract

This paper examines the effect of collaborative advantage (CA) on the performance of small-and-medium-sized enterprises (SMEs). It also explains the mediation effect of a firm’s capability in this relationship. Prior to examining this effect, the conceptualization of the CA model is investigated. Based on a questionnaire survey from the Indonesian SMEs, the analysis is conducted using PLS-SEM two-stage reflective- formative Hierarchical Component Model (HCM). By taking into account the unique features of SMEs, CA is conceptualized in eight constructs (collaborative commitment, collaborative efficiency agreement, collaborative risk-sharing, collaborative planning, collaborative resource sharing, collaborative relational capital, collaborative information-knowledge sharing, collaborative synchronized response) and further re-categorized into three pillars (inter-firm trust, dynamic synchronization, and resources investment). The empirical findings show that CA is positively affecting SMEs’ performance, and the effect is stronger when the firm’s capability is taken into account. This study contributes to the theory of CA by reformulating the constructs that fit for SMEs to strengthen inter-firm trust building and to synchronize the firm’s response to changing external factors. In addition, this study also brings a new insight by incorporating relational capital as a non-price factor in motivating firms to share wider access to resources. This study also has a managerial implication that could help firm owners and/or managers to design a framework of collaboration with their peers that provides mutual benefits for all members.

Abstract

This paper examines the effect of collaborative advantage (CA) on the performance of small-and-medium-sized enterprises (SMEs). It also explains the mediation effect of a firm’s capability in this relationship. Prior to examining this effect, the conceptualization of the CA model is investigated. Based on a questionnaire survey from the Indonesian SMEs, the analysis is conducted using PLS-SEM two-stage reflective- formative Hierarchical Component Model (HCM). By taking into account the unique features of SMEs, CA is conceptualized in eight constructs (collaborative commitment, collaborative efficiency agreement, collaborative risk-sharing, collaborative planning, collaborative resource sharing, collaborative relational capital, collaborative information-knowledge sharing, collaborative synchronized response) and further re-categorized into three pillars (inter-firm trust, dynamic synchronization, and resources investment). The empirical findings show that CA is positively affecting SMEs’ performance, and the effect is stronger when the firm’s capability is taken into account. This study contributes to the theory of CA by reformulating the constructs that fit for SMEs to strengthen inter-firm trust building and to synchronize the firm’s response to changing external factors. In addition, this study also brings a new insight by incorporating relational capital as a non-price factor in motivating firms to share wider access to resources. This study also has a managerial implication that could help firm owners and/or managers to design a framework of collaboration with their peers that provides mutual benefits for all members.

Chapters in this book

  1. Frontmatter I
  2. Contents V
  3. About the Editors IX
  4. List of Contributors XI
  5. An Introduction to a Theory of SME Entrepreneurship 1
  6. Part 1: Novel Theories of Entrepreneurship in SMEs
  7. 1 SME Entrepreneurship and Entrepreneurship Theory: A Systematic Literature Analysis in the Light of Entrepreneurial Functions 21
  8. 2 Formal but Illegitimate? Examining the Mongrel Economy 41
  9. 3 SME Internationalization and Strategy Tripod Perspective – Evidence from an Emerging Economy 57
  10. 4 Internationalization of Small-sized Game Development Firms – A Born Global Theory Perspective 79
  11. 5 Entrepreneurial Investment Cycle – A Large-scale Longitudinal Study 97
  12. Part 2: SMEs from the Perspective of Different Levels of Analysis (Macro, Meso, and Micro)
  13. 6 Antecedents of Individual Ambidexterity at Three Hierarchical Levels: A Literature Review 115
  14. 7 Life Science Companies’ Engagement with their University-based Entrepreneurship Ecosystem: A Multi-Layered Approach 141
  15. 8 Linking Young SME Entrepreneurial Activity and Economic Development 163
  16. 9 Governance of Innovation in SMEs: No Place Like Home? 179
  17. 10 Lean Social Media Communication Strategies for SMEs 201
  18. 11 Challenges for Expatriate SMEs Entrepreneurs in a Rentier State Entrepreneurial Ecosystem 241
  19. 12 A Typology of Internet Functionalities to Develop Market Orientation in SMEs 255
  20. 13 Mimetic Isomorphism, Pluralistic Ignorance, and Entrepreneurial Decision-making in SMEs: A Socio-psychological Approach Explaining the Collective Diffusion of “Bad Practices” in an Organizational Field 281
  21. 14 Modelling the Collaborative Advantage of SMEs in Pursuit of Competitiveness: An Emerging Economy Case 301
  22. 15 Sustainable Collaborative Business Models for Energy Efficient Solutions – An Exploratory Analysis of Danish and German SMEs 327
  23. Part 3: Processes and Performance of SMEs
  24. 16 The Digital Transformation of SMEs 359
  25. 17 Are the “Guys who Play Games” Shaping our Economic Future? The Croatian Economy’s Potential for Digital Transformation 383
  26. 18 Should Entrepreneurs Effectuate? A Conceptual Examination on the Effects of Effectuation on Firm Performance 405
  27. 19 How do SMEs Perform in Developing Countries? The Case of Indonesia 421
  28. 20 The Role of Culture and Entrepreneurial Opportunities in SME Entrepreneurship: A Systematic Literature Review 445
  29. 21 Emerging Artificial Intelligence Methods for Predicting SME Growth: Opportunities and Challenges 467
  30. Part 4: Entrepreneurial Capital, Gender, and SMEs
  31. 22 Entrepreneurial Teams and Collective Dynamics: Toward an Eco(systemic) Perspective 495
  32. 23 The Impact of Entrepreneurial Capital on Preferences for External Financing: An Empirical Study of Ethnic Minority Business Owners in the UK 519
  33. 24 Internalizing Gender Equality: Narratives of Family Business Entrepreneurs 543
  34. 25 Success Factors of Digital Start-ups 559
  35. Part 5: SMEs and their Stakeholders: The Role of Customers, Investors, Employees, Suppliers, Communities, Governments, Trade Associations, etc.
  36. 26 The Multiple Responsibilities of SMEs and Entrepreneurs 579
  37. 27 Exploring Early Customer Portfolios of Start-ups: Capturing Patterns of Relationship Development States 599
  38. 28 The Role of Research Universities in Catalyzing Value Creation 619
  39. 29 Entrepreneurial Culture Creation through Employee Effectuation 643
  40. List of Figures 669
  41. List of Tables 671
  42. Index 675
https://doi.org/10.1515/9783110747652-015

Chapters in this book

  1. Frontmatter I
  2. Contents V
  3. About the Editors IX
  4. List of Contributors XI
  5. An Introduction to a Theory of SME Entrepreneurship 1
  6. Part 1: Novel Theories of Entrepreneurship in SMEs
  7. 1 SME Entrepreneurship and Entrepreneurship Theory: A Systematic Literature Analysis in the Light of Entrepreneurial Functions 21
  8. 2 Formal but Illegitimate? Examining the Mongrel Economy 41
  9. 3 SME Internationalization and Strategy Tripod Perspective – Evidence from an Emerging Economy 57
  10. 4 Internationalization of Small-sized Game Development Firms – A Born Global Theory Perspective 79
  11. 5 Entrepreneurial Investment Cycle – A Large-scale Longitudinal Study 97
  12. Part 2: SMEs from the Perspective of Different Levels of Analysis (Macro, Meso, and Micro)
  13. 6 Antecedents of Individual Ambidexterity at Three Hierarchical Levels: A Literature Review 115
  14. 7 Life Science Companies’ Engagement with their University-based Entrepreneurship Ecosystem: A Multi-Layered Approach 141
  15. 8 Linking Young SME Entrepreneurial Activity and Economic Development 163
  16. 9 Governance of Innovation in SMEs: No Place Like Home? 179
  17. 10 Lean Social Media Communication Strategies for SMEs 201
  18. 11 Challenges for Expatriate SMEs Entrepreneurs in a Rentier State Entrepreneurial Ecosystem 241
  19. 12 A Typology of Internet Functionalities to Develop Market Orientation in SMEs 255
  20. 13 Mimetic Isomorphism, Pluralistic Ignorance, and Entrepreneurial Decision-making in SMEs: A Socio-psychological Approach Explaining the Collective Diffusion of “Bad Practices” in an Organizational Field 281
  21. 14 Modelling the Collaborative Advantage of SMEs in Pursuit of Competitiveness: An Emerging Economy Case 301
  22. 15 Sustainable Collaborative Business Models for Energy Efficient Solutions – An Exploratory Analysis of Danish and German SMEs 327
  23. Part 3: Processes and Performance of SMEs
  24. 16 The Digital Transformation of SMEs 359
  25. 17 Are the “Guys who Play Games” Shaping our Economic Future? The Croatian Economy’s Potential for Digital Transformation 383
  26. 18 Should Entrepreneurs Effectuate? A Conceptual Examination on the Effects of Effectuation on Firm Performance 405
  27. 19 How do SMEs Perform in Developing Countries? The Case of Indonesia 421
  28. 20 The Role of Culture and Entrepreneurial Opportunities in SME Entrepreneurship: A Systematic Literature Review 445
  29. 21 Emerging Artificial Intelligence Methods for Predicting SME Growth: Opportunities and Challenges 467
  30. Part 4: Entrepreneurial Capital, Gender, and SMEs
  31. 22 Entrepreneurial Teams and Collective Dynamics: Toward an Eco(systemic) Perspective 495
  32. 23 The Impact of Entrepreneurial Capital on Preferences for External Financing: An Empirical Study of Ethnic Minority Business Owners in the UK 519
  33. 24 Internalizing Gender Equality: Narratives of Family Business Entrepreneurs 543
  34. 25 Success Factors of Digital Start-ups 559
  35. Part 5: SMEs and their Stakeholders: The Role of Customers, Investors, Employees, Suppliers, Communities, Governments, Trade Associations, etc.
  36. 26 The Multiple Responsibilities of SMEs and Entrepreneurs 579
  37. 27 Exploring Early Customer Portfolios of Start-ups: Capturing Patterns of Relationship Development States 599
  38. 28 The Role of Research Universities in Catalyzing Value Creation 619
  39. 29 Entrepreneurial Culture Creation through Employee Effectuation 643
  40. List of Figures 669
  41. List of Tables 671
  42. Index 675
Sign up now to receive a 20% welcome discount
Institutional Access
How does access work?
Have an idea on how to improve our website?
Please write us.
© 2025 De Gruyter Brill
Downloaded on 1.10.2025 from https://www.degruyterbrill.com/document/doi/10.1515/9783110747652-015/html
Scroll to top button