Triple Helix Model and Firm Performance: A Case of Pakistani SMEs

Abstract

Small and medium enterprises (SMEs) in developing countries are striving to achieve better performance. Several external agents play their role by helping firms to achieve improved performance by implementing innovation in the firm. In this stance, the present study aims to investigate the role government, university, and industry play in achieving the enhanced firm performance. The study considered marketing innovation and organizational innovation as the pillars of the firm’s performance. The study hypothesized that the players of triple helix model (government, industry, and university) have direct influence on the organizational and marketing innovation of the firm which further helps in achieving better firm performance. The research collected the data from the SMEs of Pakistan from different sectors and major cities. The study evaluates the data through structural equation modeling the results of the study reveal the significant relationship of all variables. The results of the study unveiled that external sources like government, universities and industries helped the organizations to improve their performance by collaborating with them. The study highlighted that Pakistani SMEs are lacking behind in bringing innovation in their organizational and marketing activities due to lack of resources, support, and proper R&D. On the ground of the findings the study concluded that SMEs in Pakistan could enhance their performance by collaborating with the agents of triple helix model.