Organisational_innovation

Organisational_innovation - The Emerald Research Register...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Organisational innovation in SMEs The importance of strategic orientation and competitive structure H. Salavou, G. Baltas and S. Lioukas Athens University of Economics and Business, Athens, Greece Keywords Organizational innovation, Small to medium-sized enterprises, Strategic alignment, Competitive strategy, Poisson distribution, Greece Abstract This study considers determinants of organisational innovation in small to medium-sized enterprises (SMEs), as expressed by the number of product innovation adoptions. Drawing upon data from 150 manufacturing firms in Greece, the study attempts to identify the importance of strategic orientation and competitive structure. First, strategy-driven characteristics, such as market orientation and learning, are shown to increase SMEs’ innovative performance. Second, competition-related characteristics, and in particular industry concentration and barriers to entry, appear to have significant effects on SMEs’ innovative activity. Overall, the empirical findings suggest that market- and learning-oriented SMEs facing strong competition tend to be more innovative. These results are discussed in the context of Greek SMEs in food, beverages and textile sectors, taking into account the specific conditions prevailing. Apart from providing some new evidence in the important area of SMEs, this study has also important implications for managers and policy makers while revealing considerable scope for further research. Introduction This paper focuses on the impact of important aspects of the strategic and competitive posture of small to medium-sized enterprises (SMEs) on organisational innovation. Much of existing research on the determinants of innovation was aimed at identifying the impact of firm-specific characteristics on innovation and/or the effect of external environment (Capon et al. , 1992; Fritz, 1989; Kraft, 1989; Wolfe, 1994). Most work on this research stream, however, placed emphasis on the effects of structural factors which are more appropriate for large firms (Damanpour, 1988, 1991; Kim, 1980; Kimberly and Evanisko, 1981). Fewer studies have considered the effects of strategic orientation such as closeness to customers, learning and flexibility, which are received as advantages of SMEs. Furthermore, empirical evidence in existing studies draws mainly from samples of large firms in advanced countries, such as the USA, Japan, UK, Germany, etc. Despite the increasing globalisation and the growing relevance of other economies, few studies have appeared in the literature utilising data from smaller countries in various stages of development. This raises important questions on the transferability of conclusions across national settings. Many researchers (Calvert et al. , 1996; Hofstede, 1991; Janssens et al. , 1995; Nejad, 1997; Porter, 1990; White, 1988) suggest that using the findings of innovation studies in advanced countries to explain the innovative behaviour in less developed countries is likely to be inappropriate. This line of thinking is supported by differences in national conditions that affect firm conduct and innovative performance.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern