The Role of Institutional Trust in the Relationship Between SME Networks and Innovativeness: A Multi-Level Analysis

Authors : Ufuk Gür, Burak Özdoğan
Pages : 15-27
Doi:10.56203/iyd.1603572
View : 88 | Download : 193
Publication Date : 2025-07-31
Article Type : Research Paper
Abstract :The relationship between the innovativeness of SMEs and their academic researcher-inventor collaboration mechanisms have not yet been fully discovered. This study contributes to the literature by studying this relationship between SME researcher networks (manifesting on SME manager-owner and researcher relationship level) and SME innovativeness through multi-level hierarchical analysis on nested data. Its originality lies in applying institutional level (trust in institutions) and organizational level (SME network and SME innovativeness) data in the same model, so that we can elaborate more on the role of institutions in innovative economies. We used the data from 20,512 SMEs across 20 countries. Results reveal that while researcher networks alone may not drive innovativeness, their effectiveness is significantly enhanced in higher institutional trust contexts. These findings contribute to open innovation theory by integrating trust as a critical contextual factor. We used the survey data from the World Values Survey for institutional trust scores in countries and annual Global Entrepreneurship Monitor survey conducted in 20 countries (where the survey item for researcher/inventor networks was used) between 2009 and 2013 with 20,512 valid SMEs (both traditional and technology SMEs) answers. The study adopted Hierarchical Linear Multi-Level Modelling with the fixed effects of independent and control variables and the random effect of higher-level interaction country variables. These findings provide new insights into the dynamics of open innovation in SMEs and the role of institutional trust in facilitating effective collaboration.
Keywords : yenilik yonetimi, KOBI yenilikciligi, acik yenilik, kurumlara guven

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