How and when domestic and international collaboration networks influence innovation performance of SMEs: evidence from China

PurposeThis study aims to explore the effect of collaboration networks (domestic and international collaboration networks) on the innovation performance of small and medium-sized enterprises (SMEs). It also investigates the mediating role of business model innovation, the moderating role of entrepreneurial orientation and government institutional support between them.Design/methodology/approachHierarchical regression analysis is adopted to test the hypotheses based on survey data provided by 223 manufacturing SMEs in China.FindingsThe results reveal that domestic and international collaboration networks positively affect SMEs' innovation performance. Business model innovation mediates domestic and international collaboration networks-SMEs' innovation performance relationships. Entrepreneurial orientation positively moderates international collaboration networks-SMEs' innovation performance relationship, and government institutional support positively moderates domestic and international collaboration networks-SMEs' innovation performance relationships.Practical implicationsThe findings indicate that managers of SMEs should invest in domestic and international collaboration networks and business model innovation to enhance SMEs' innovation performance. Moreover, entrepreneurial orientation and government institutional support should be valued when SMEs try to enhance their innovation performance by embedding in domestic and international collaboration networks.Originality/valueThis study broadens the authors' understanding of the relationship between collaboration networks and firms' innovation performance by classifying collaboration networks into domestic and international dimensions and investigating their direct impacts on SMEs' innovation performance. Besides, this study reveals how and when domestic and international collaboration networks influence the innovation performance of SMEs.