Innovation types and performance in growing UK SMEs

Abstract

PurposeThe objective of this study is to explore the types of innovation that are predominant in UK SMEs, whether they are predominantly radical or incremental, and to investigate the impact of these innovations on performance.Design/methodology/approachA web‐based survey instrument was used to administer survey questionnaires to a sample of UK SMEs in manufacturing, engineering, electronics, information technology and telecommunications industries. The response rate was 13.8 percent. Relevant statistical analytical techniques including regression for analysis was then used.FindingsIt is found that the SMEs tend to focus more on incremental than radical innovations and that this focus is related to growth in sales turnover.Practical implicationsIt is not such a bad idea for SMEs, particularly those operating in high technological industries, to focus on incremental innovations as these are actually related positively to sales turnover growth.Originality/valueAn investigation of the types of innovation that SMEs pursue is pioneering in the field as previous studies of this type have been based on large firms. The contention that the raison d'etre of SMEs is to develop radical innovations is not supported empirically, at least for the sample of SMEs. In addition, it is found that the age of an SME is not related to its focus on either incremental or radical innovation. These are the contributions of this paper.

Why companies go positive marketing innovations: a new theoretical prototype for 4Ps of innovation

“…Binary model innovation typologies suggested in 1970s and 1980s categorize innovation as product/process, administrative/technical and radical/incremental. Oke et al (2007) offer three types of innovation -process, product and service -distinguishing product innovation and service innovation. Within the framework of this study, we focus on the taxonomy proposed by Tidd et al (2005), which examines innovation in four Ps: product, process, position and paradigm.…”

Estructura organizativa e innovación en la Economía Social de Andalucía

“…Con carácter general, las tipologías de innovación más consideradas en la literatura son producto y proceso (Gunday et al, 2011); siendo, según Piening y Salge (2015), la gestión de innovación de producto la que recibe una mayor atención. En la misma línea, Mosey (2005) y Oke et al (2007), afirman que no se ha investigado empíricamente las innovaciones radicales e incrementales en las pymes; unido, a que los factores determinantes de la innovación conviven y compiten en conceptualizaciones diversas (Fagerberg y Verspagen, 2009). …”

“…Conforme a las debilidades de los métodos de captación de datos, resaltar que los objetos materiales prioritarios se refieren a la innovación en las grandes empresas (Teece, 2016), y existe, en palabras de Oke et al (2007), una insuficiencia de estudios relacionados con los tipos de innovación en las pymes. Comparten premisa Del Águila y Padilla (2010) cuando aseveran que se ha estudiado, relativamente poco, la innovación en el sector de la «Economía Social».…”

THE EFFECT OF COMPETITIVE ADVANTAGE AND HUMAN ADVANTAGE ON INDUSTRIAL COMPETITIVE STRATEGY (Case Study: SMIs in Gorontalo Province)

“…Based on the study by Oke et al (2007), an innovation positively correlates with the performance of industrial companies. The results of a measurement by Rosenbusch et al (2011) show similar results.…”