Interactive Effects of Network Capability, ICT Capability, and Financial Slack on Technology-Based Small Firm Innovation Performance

Abstract

This study examines the influence of network capability (the ability to use external relationships), information and communications technology (ICT) capability (the ability to strategically use ICT for business purposes), and financial slack (unused and uncommitted financial resources) on the innovation performance of small firms. This extends the current resource-based view and small firm innovation management literatures by proposing the direct and interactive effects of organizational capabilities and financial slack. The results of regression analysis based on survey data from technology-based Swedish small firms show that the three-way interaction involving network capability, ICT capability, and financial slack influences innovation performance.