Understanding the combined effects of organisational isomorphism in resource obtainment on innovation and sustainable growth of small enterprises

Abstract

Purpose This article examined the combined effects of organisational isomorphism in resource obtainment on the sustainable growth of small enterprises in an emerging economy and the mediating role of innovation. Design/methodology/approach Based on institutional isomorphism and the diffusion of innovation theories, this study develops and empirically tests a conceptual model using survey data from 319 small enterprises in Ghana. The data analysis employed a covariance-based structural equation modelling. Findings The findings show that organisational isomorphism in resource obtainment has a positive and significant effect on the sustainable growth of small enterprises, and innovation fully mediates this relationship. In addition, mimetic and normative dimensions of organisational isomorphism in resource obtainment have positive and significant effects on sustainable growth, but coercive isomorphism dimension does not. Furthermore, the paths from mimetic and normative isomorphisms in resource obtainment to sustainable growth are fully mediated by innovation. Practical implications The findings underscore the need for small enterprises to embrace homogeneity as a networking strategy to obtain critical complementary resources to drive internal innovation for sustainable growth. Originality/value This study integrates institutional and innovation-based theories to offer a unique “organisational isomorphism framework” beyond the resource-based view (RBV). By testing the framework, the empirical findings address critical research gaps and provide novel insights into organisational isomorphism as an institutional mechanism that facilitates access to complementary resources for internal innovation and the sustainable growth of small enterprises.