External knowledge inflows, absorptive capacity, innovations and performance: an integrative frame work for SMEs based on resource-based view (RBV).

Abstract

Given that small and medium-sized enterprises (SMEs) are central to the sustainability and viability of economies, researchers need to understand at a very basic level the elements that affect SME output. Three of SME Performance's most widely recognized precursors are external knowledge inflow (for both scientific and market knowledge), absorption of external knowledge, and innovation. However, regardless of broad consideration, the hypothetical and empirical status of the linkage between knowledge inflow, absorption capacity, and innovation, and SME's performance stay questionable. Some analysts note that cases concerning an immediate positive relation between external information inflows and efficiency do not get a full picture of the SMEs, It needs the mediator function of ability absorption (ACAP) and innovation in the relation between external information inflows and performance. Thus, this integrative framework will serve as a basic platform to examine the SMEs' performance.