The relationship between types of innovation and SMEs’ performance: a multi-dimensional empirical assessment

Expósito, Alfonso; Sanchís, Juan

doi:10.1007/s40821-018-00116-3

Cited by 80 publications

(56 citation statements)

References 44 publications

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“…Also, if the value of expenditures on innovation performed by all enterprises increases by one percent, turnover will increase by 0.26%. Consistent with Exposito and Sanchis-Llopis [39], the introduction of product innovation emphasizes a positive impact on the probability of sales intensification. Hence, Hypothesis 2b is confirmed.…”

Section: The Impact Of Innovation On Territorial Economic Growthmentioning

confidence: 56%

“…As such, a crucial role in shaping a competitive benefit is revealed by innovation [29]. Exposito and Sanchis-Llopis [39] noticed that innovation of any type (product, process and/or organizational) positively influences financial and operational extents of SME performance. As well, The Organisation for Economic Co-operation and Development (OECD) [60] reinforced that higher levels of firms' investment in innovation determine higher innovation sales and productivity.…”

Section: Previous Studies On Innovation In Smesmentioning

confidence: 99%

“…The turnover of all the micro-enterprises at the national level Consistent with prior studies [2,6,20,32,39,42,48,72], turnover was selected in order to catch the territorial economic growth, alongside investments [32], firm size [6,28,48,52,72], expenditures on innovation [47,72] and the number of enterprises.…”

Section: Y1bmentioning

confidence: 99%

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Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation

et al. 2020

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Small and medium-sized enterprises (SMEs) are crucial for local economic development, playing a noteworthy role in job creation, poverty alleviation and economic growth, but they encounter many funding barriers. The purpose of the current paper is to investigate the impact of investments and innovation on territorial economic growth, as measured by turnover, for Romanian active enterprises, especially SMEs, over the period 2009–2017. By estimating several log–log linear regressions, the quantitative outcomes provide support for a positive influence of investments on turnover. The association was confirmed both for all active enterprises at the national level, as well as for micro, small, middle-sized and big companies. As regards expenditures on innovation, a positive impact on turnover was acknowledged for all enterprises and particularly for big companies, but there was an absence of any statistically significant relation in the case of SMEs. The impact of firm size on turnover was positive for all active enterprises at the national level, along with active micro-units. Also, the estimation results show a positive impact of the number of active micro-units on territorial economic growth. The empirical findings are relevant to managers and policymakers in order to stimulate, encourage and offer support to SMEs’ development through their strategies.

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Section: The Impact Of Innovation On Territorial Economic Growthmentioning

confidence: 56%

Section: Previous Studies On Innovation In Smesmentioning

confidence: 99%

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Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation

et al. 2020

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“…Fortunately, innovations that create value for companies may not always be from formal R&D activities [5]. Further, the various types of innovation (e.g., product, process, and managerial innovation) exert different effects on financial and operational performance [6].…”

Section: Introductionmentioning

confidence: 99%

Does an Innovative Climate Help to Sustain Competitiveness? The Moderating Effect of Government Support and Market Competition

2020

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Innovation has become a key source of competitive advantage that supports companies in achieving sustainable development. Organizational innovations usually start from employees’ innovative ideas, irrespective of the company’s size. If there were no specific rules to restrain employees from generating novel ideas, innovation could happen anywhere in an organization. The quest for innovation calls for a broad range of management strategies that are far beyond the research and development (R&D) investment. How can managers integrate intra-organizational management and external factors to incentivize people for innovations? Drawing on the interactional theory of organizational innovation, this study adopted a systematic perspective and tested the effect of the innovative climate on sales and manufacturing department innovation while examining the moderating effects of government support and market competition. Our findings from a survey of 482 companies showed that: (1) an innovative climate has a positive effect on both sales and manufacturing department innovation, (2) government support strengthens the positive effect of an innovative climate on department innovations, and (3) market competition enhances the positive moderating effect of government support on the relationship between an innovative climate and department innovation, such that the innovative climate exerts a stronger influence on department employee-driven innovation when government support and market competition are both high. Our study provides companies with an effective and low-cost approach to enhance competitiveness. We discuss the theoretical contributions and practical implementations of this study.

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“…Regarding other innovation types, empirical evidence have shown a positive impact of service, process, organisational, and marketing innovations on SME performance (McDermott & Prajogo, 2012;Freel & Robson, 2004;Hall et al, 2009;Ar & Baki, 2011;Lin & Chen, 2007;Salim & Sulaiman, 2011;Expósito & Sanchis-Llopis, 2019;Aksoy, 2017). Empirical evidence have also captured the spectrum of innovation types (product, service, process, marketing, and organisational) and its positive impact on SME performance (Al-Ansari et al, 2013;Varis & Littunen, 2010;Oke et al, 2007).…”

Section: Innovation and Sme Performancementioning

confidence: 99%

Performance of Australian biotech SMEs: the impact of formal open innovation, absorptive capacity and innovation

Rosli¹

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The Australian biotechnology (biotech) industry is mostly comprised of small and medium-sized enterprises (SMEs), a global leader in innovation where interorganisational collaboration is common, and high performing. In the extant literature, formal open innovation, absorptive capacity, and innovation are established organisational practices and capabilities which enhance biotech firm performance. However, these performance drivers have not been statistically tested to determine their impact on Australian biotech SME performance, as is done in this thesis. Senior management surveys from 58 biotech SMEs were performed, representing approximately 16.9 per cent of the population. Multiple linear regressions show that absorptive capacity (ability to acquire, assimilate, transform, and exploit knowledge) positively impacts performance (sales and profit growth). This finding is expected, as biotech SMEs would have high levels of absorptive capacity. The regressions also provided mixed results for innovation types and novelty. New-to-Australia service innovation and new-to-world, new-to-Australia, and overall process innovations are associated with performance improvement, most likely due to increased effectiveness and efficiency of organisational actions. New-to-world product innovation negatively impacts profit growth and this finding may be as a consequence of the high costs involved. Contrary to findings in other contexts, formal open innovation (in-licensing, out-licensing, joint R&D, and joint commercialisation activities) is negatively associated with performance. However, formal open innovation is positively correlated with absorptive capacity. Thus, the cross-sectional research design of this thesis limits the long-term impact of formal open innovation on performance. As innovation is a longterm investment for biotech companies, perhaps the negative impact of formal open innovation on performance is short-term where these companies may only reap economic benefits in the long-term. Other factors may include formal innovation collaboration with competitors, increased costs of innovation development, the time lag associated with returns on innovations, asymmetrical partnerships in formal open innovation engagement, and disadvantages of licensing agreements. This thesis informs the literature of the importance of absorptive capacity as being more ideal than iii formal open innovation for Australian biotech SMEs to enhance performance. This thesis also informs the literature and managerial practice on the importance of formal open innovation in developing absorptive capacity, and cautions Australian biotech SMEs against reliance on formal open innovation to enhance innovation outputs and performance. Instead, biotech SMEs should direct their resources towards formal open innovation engagement to develop absorptive capacity, which in turn enhances performance. Biotech SMEs should also direct their resources to develop new-to-Australia service and new-to-world process innovations as opposed to new-to-world product inno...

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The relationship between types of innovation and SMEs’ performance: a multi-dimensional empirical assessment

Cited by 80 publications

References 44 publications

Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation

Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation

Does an Innovative Climate Help to Sustain Competitiveness? The Moderating Effect of Government Support and Market Competition

Performance of Australian biotech SMEs: the impact of formal open innovation, absorptive capacity and innovation

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