The complementary effect of network capability and learning orientation on firm performance: Evidence from SMEs in Ankara

It is widely accepted that strong network capability (hereinafter NC) and learning orientation (hereinafter LO) directly enhance small and medium-sized enterprises' (SMEs) performance. Yet, relatively less attention has been paid to the study of the complementary effects of internal and external capabilities on innovation and firm performance, especially in small business management literature. Drawing on the dynamic capabilities theory, this study investigates the complementary effect of NC and LO on firm performance of small and medium-sized enterprises (SMEs). In this respect, this study examines how product and process innovation capability mediates the relationship between the complementary effect of NC and LO on SME performance. The hypotheses based on the proposed research model was tested on 309 high-technology manufacturing SMEs located in Ankara, Türkiye. The collected data were analyzed by using SPSS and Hayes' PROCESS macro. The empirical results revealed that NC and LO jointly influence product innovation capability. The results further suggested that process innovation capability performs a mediating role in the complementary effect of NC and LO on firm performance, but no support was found for the mediating role of product innovation capability. This study contributes to the literature by providing a comprehensive analysis of the relationships between NC, LO, innovation capabilities, and SME performance in an emergent economy. The managerial implications of our findings are discussed and directions for future research are offered.