Triple Helix Innovation Ecosystem: The Role of Small and Medium Enterprises Community in Enhancing Performance

Abstract

Purpose: This study seeks to reveal the relationship between the triple helix innovation ecosystem and Small and Medium Enterprises (SMEs’) performance and the role of the SME community as the mediator between the triple helix innovation ecosystem and SMEs’ performance. Methodology/Approach: This study uses a quantitative approach. Data were collected using an online questionnaire from 386 SME managers who are members of the SME community in Malang Regency, East Java, Indonesia. SEM-PLS was used to analyse the data to examine the relationship of three latent variables: triple helix ecosystem, SME community, and SMEs’ performance. Findings: The triple helix ecosystem in this study was the collaboration of three agents, namely the government, large companies, and universities. This study proves that the triple helix ecosystem innovation is positively and significantly related to the performance of SMEs. Another important finding is that the SME community partially mediates the triple helix innovation ecosystem relationship and SME performance. The SME community has a strategic role in the triple helix agents intervention process to improve the performance of SMEs. Research Limitation/Implication: The data were collected through an online questionnaire so that it could not reveal the process of operational interventions of triple helix agents to improve SMEs’ performance. The performance of SMEs did not measure internal business processes, such as the presence of technology in processes, product development, and time savings. Originality/Value of paper: This research contributes to the literature through triple helix analysis as an ecosystem in improving the performance of SMEs.