Title: Mediating Effect of Inbound open Innovation and Social media adoption on Entrepreneurial Orientation and Performance of Micro and Small Enterprises in Ethiopia
Authors: Belachew Abeje Workneh, Mu Renyan
Volume: 8
Issue: 8
Pages: 285-300
Publication Date: 2024/08/28
Abstract:
Innovation, creativity, and entrepreneurship are essential skills for entrepreneurs to seize opportunities in today's highly competitive global era. Combining these skills has given rise to a novel framework called open innovation. Social media has brought about significant changes in how daily business operations are conducted, leading to a growing interest among academics, professionals, and scholars in researching the impact of social media and open innovation on micro and small enterprises. This research explores the mediating effect of inbound open innovation and social media adoption on the relationship between entrepreneurial orientation and the performance of micro and small enterprises in Ethiopia. Data from 254 MSEs in Ethiopia was collected through a closed-ended questionnaire and analyzed using structural equation modeling with AMOS software. The results have demonstrated a direct positive relationship between entrepreneurial orientation and micro and small enterprises performance. Furthermore, a direct positive relationship has been observed between EO and social media adoption, EO and inbound open innovation, social media adoption and MSEs Performance, and inbound open innovation and MSEs Performance. The findings also indicated a significant partial mediation effect of open inbound innovation and social media adoption in the relationship between EO and MSE's performance. This paper has significant implications for practitioners and researchers studying social media adoption in micro and small enterprises. It introduces a multi-dimensional model that includes mediating factors, offering valuable insights for open strategic management and advancing entrepreneurial theory in open innovation. The reliable findings of this study provide trustworthy guidelines for practitioners in different industries.