Firms as source of variety in innovation: influence of size and sector

Abstract

This article seeks to fulfill two main objectives. It firstly seeks to identify and quantify characteristics and behaviors of firms that are associated with what, in the evolutionary stream, is known as variety in innovation. A factor analysis is applied with a view to establishing, from a sizeable group of variables related to business innovation, the main factors or sources of variety in innovation in firms. The second goal is to estimate the influence of two variables that have been traditionally related to innovative firm activity on each of these sources: size and sector. The results of the analysis show seven important sources of variability in innovation for firms and that the influence of size and sector of activity on innovation occurs, at different levels of intensity, through these sources. The empirical analysis is based on the responses given for managers of a representative sample of enterprises in a personal interview.

Regional Importance of Mittelstand Firms and Innovation Performance

“…In line with the existing literature, firms' expenditures for research and development are expected to have a positive impact on innovation activity (CÁCERES et al, 2011;JAFFE, 1986;FRANKE and FRITSCH, 2004). Therefore, internal investments in research and development per enterprise by NUTS-3-regions are used as control variable.…”

Does incremental and radical innovation performance depend on different types of knowledge accumulation capabilities and organizational size?

“…Larger versus smaller firms possess more financial and human resources (Arias-Aranda et al, 2001) with better formation and training (Cáceres et al, 2011). The availability of a broad, diverse team of people allows large firms to create new scientific and technological knowledge (Cáceres et al, 2011).…”

“…The availability of a broad, diverse team of people allows large firms to create new scientific and technological knowledge (Cáceres et al, 2011). On the other hand, in order to overcome the problems deriving from greater organizational complexity, large firms must create new organizational models that give them the flexibility and adaptability to deal with changes in the environment.…”

“…However, the effect of this variable on innovation performance is not altogether clear. While a number of studies have analyzed the direct effect of size on the degree of innovation (e.g., Arias-Aranda et al, 2001), and on innovation in terms of R&D, new products and processes or patents (e.g., Cáceres et al, 2011;Laforet, 2008), less attention has been paid to controlling for this effect on different types of innovation performance. Moreover, the evidence of size on incremental and radical innovation performance reports contradictory results; although knowledge accumulation is one of the antecedents of innovation performance that, along with size, has been most widely studied, relatively little empirical research has been reported on the effect of size on internal knowledge creation capability and absorptive capability.…”

Efficiency analysis of small franchise enterprises through a DEA metafrontier model

“…An understanding of the efficiency level of companies that operate in any economy is a management reference for taking decisions, an aid to any firm that wants to optimise its own resources, and an orientation for entrepreneurs who want start new and innovative businesses (Cáceres, Guzmán, & Rekowski, 2011;Cavalcante, Kesting, & Ulhøi, 2011;Goktan & Miles, 2011;Hotho & Champion, 2011;Huang, Chou, & Lee, 2010;Huarng & Yu, 2011;Naranjo-Valencia, Jiménez-Jiménez, & Sanz-Valle, 2011;Zhang & Duan, 2010). In particular, this paper analyses the techno-economic efficiency of small franchise firms in the main Spanish economic sectors by applying the metafrontier model based on DEA methodology to obtain comparable efficiency scores -while taking into account the heterogeneity and differences between these sectors.…”