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Pathways to superior product innovation through co-innovation collaborations and digitalization processes: evidence from Latin American SMEs

Margie Faith & José Martínez

Management Research2026https://doi.org/10.1108/mrjiam-05-2025-1734article
AJG 1ABDC C
Weight
0.50

What the paper says

Purpose This study aims to evaluate how co-innovation collaborations (both horizontal and vertical) and digitalization processes influence product innovation, while acknowledging that the development of a formal digital strategy might impact product innovation through the mediating effect of digitalization processes. Design/methodology/approach To test the proposed hypotheses, the study’s empirical exercise uses seemingly unrelated (SUR) biprobit regression models on a unique sample that includes information for 572 small and medium-sized enterprises (SMEs) from five Latin American countries for 2021. Findings The results of the biprobit SUR model suggest that both horizontal and vertical co-innovation collaborations as well as digitalization processes positively impact product innovation. In addition, it was found that digitalization processes play a key role in mediating the effect of adopting a formal digital strategy on product innovation. Research limitations/implications The authors highlight the strategic implications of developing co-innovation collaborations for successful product innovation. In addition, the authors show how a structured, planned digital transformation process in SMEs supports innovation efforts by improving coordination between agents collaborating with the firm. Practical implications In practical terms, the results provide actionable insights into how to configure co-innovation collaborations to support product innovation. By highlighting the significance of the fit between internal structures and technology adoption, the study establishes critical pathways to strategize digital technologies’ implementation processes. Originality/value By analyzing the role over innovation outcomes of both horizontal and vertical co-innovation collaborations, this study adds evidence to the growing stock of work on co-innovation in SMEs, responding to calls for more research on how inter-firm collaborations drive innovation in these firms. Also, this research advances the understanding of the potentially beneficial effects of the alignment between digital transformation processes and digital strategy implementation, particularly in resource-constrained settings.

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https://doi.org/https://doi.org/10.1108/mrjiam-05-2025-1734

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@article{margie2026,
  title        = {{Pathways to superior product innovation through co-innovation collaborations and digitalization processes: evidence from Latin American SMEs}},
  author       = {Margie Faith & José Martínez},
  journal      = {Management Research},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1108/mrjiam-05-2025-1734},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.