Determinants of innovation

Abstract

Purpose This paper aims to study the influence of innovation on micro, small and medium-sized enterprises (MSME) performance in Colombia through the 403 MSMES survey analysis. In particular, this paper measures the effect of participation in R&D alliances, product innovation and process innovation on it. Design/methodology/approach MSME performance is measured through a composite index, estimated through principal components analysis using polychoric correlations, which is based on eight self-reported assessments of MSME performance. Then, this measure of performance is related to MSME participation in R&D alliances and the product and process development stance of the MSME based on an adaptation of the Miles and Snow business classification scheme, by means of an ANOVA and a linear regression. Findings Colombian SMEs are not significantly benefitted from participation on R&D alliances. Instead, their performance appears to be dependent upon their internal innovation efforts directed to product development. Moreover, the results suggest that imitators get a performance almost as high as innovators. Originality/value Innovation activities in Colombian SMEs are carried out informally, as they are mostly uninterested to engage in R&D activities and to develop new products by own initiative. Moreover, few of them have an R&D department. In regard to technology, results suggest that almost half of SMEs are classified as followers, namely, they use the same technology as competitors.

Creation of shared value in cooperatives: informal institutions’ perspective of small-sized banana growers from Colombia

“…Networks can provide opportunities or create restrictions in the organisation's performance (Kilduff and Brass, 2010; Restrepo-Morales et al. , 2019).…”

The determinants of innovation performance: an income-based cross-country comparative analysis using the Global Innovation Index (GII)

“…(2018) argue that organizational structures, work climate, knowledge development, and human resource well-being are some factors that determine the innovation capacity of medium-sized firms. Additionally, Restrepo-Morales et al (2019) identified R&D activities and alliances as the determinants of the innovativeness of SMEs in Colombia. At the same time, Babuchowska and Marks-Bielska (2021) reveal that streamlining work, improvement in quality, and compliance with the requirements as some of the determinants of innovation in dairy farms in Poland.…”

Assessing the Business Ecosystem for Indian SMEs: A Resource-Based View

“…The growth of Indian MSMEs can be guided by the theory of production (TOP) and resource-based view (RBV). The theory of production states that the business firms decides how much of each commodity it sells (its 'outputs' or 'products'), it produces, and how much of each kind of labour, raw material, fixed capital good, and so on, it employs (its 'inputs' or 'factors of production') (Restrepo-Morales et al, 2019). The firm's focus is to determine the cheapest possible factors of production such as land, raw material, capital and labour which will produce the desired level of output.…”