The mediating role of innovativeness and the moderating effects of strategic choice on SME performance

Abstract

This study investigated the moderating role of strategic choices on the relationship between organizational innovativeness and performance. Previous literature has not fully investigated which strategy among market development (international expansion) and technology development (investment in research and development) will result in a higher performance outcome for a highly innovative organization. Thus, a second-stage moderated mediation model was used to analyze data gathered from a survey of 237 small and medium-sized enterprises from several industrial sectors in South Korea, including high-tech firms. The results suggest that a market development strategy is more important than a technology development strategy for an innovative organization to achieve high business performance.