Organizational Innovation Promoters and Performance Effects in Small,Knowledge-Intensive Firms

Abstract

This paper investigates the impacts of organizational factors on innovation and performance in small, knowledge-intensive firms. The study focused on Norwegian firms with 5 to 30 employees. The findings indicate that differentiating between product, process and market innovation provides a better understanding of the factors that drive innovation. This strategy seems to influence innovation. For instance, low-cost strategy positively impacts on both process innovation and market innovation. Also, external relationships significantly influence innovation: for instance, market participation in a product development context has a significant influence on product development.

Keywords

innovation interorganizational innovation promoters small firms knowledge-intensive firms

References

Acs

Z. J.

Audretsch

D. B.

(2005), Entrepreneurship and Innovation, Institute of Entrepreneurship, Growth and Public Policy Division, Max Planck Institute of Economics, Jena, Germany.

Acs

Preston

(1997), ‘Small and medium-sized enterprises, technology and globalization: Introduction to a special issue on small and medium-sized enterprises in the global economy’, Small Business Economics, Vol 9, pp 1–6.

Beath

C. M.

(1991), ‘Supporting the information technology champion’, MIS Quarterly, Vol 15, No 3, pp 355–372.

Beatty

C. A.

Gordon

(1991), ‘Preaching the gospel: The evangelist of new technology’, California Management Review, Vol 33, No 3, pp 73–94.

Berry

M. M. J.

Taggart

J. H.

(1998), ‘Combining technology and corporate strategy in small high tech firms’, Research Policy, Vol 26, pp 883–895.

Booz

Allen

Hamilton

(1980), New Product Management for the 1980s, Booz-Allen and Hamilton, New York.

Bou-Wen

Chung-Jen

(2006), ‘Fostering product innovation in industry networks: The mediating role of knowledge integration’, International Journal of Human Resource Management, Vol 17, No 1, pp 155–173.

Bryman

Cramer

(2001), Quantitative Data Analysis. A Guide for Social Scientists, Taylor and Francis, Philadelphia, PA.

Burgleman

Sayles

(1986), Inside Corporate Venturing, Free Press, New York.

10.

Burt

(1992), Structural Holes. The Social Structure of Competition, Harvard University Press, Cambridge, MA.

11.

Cohen

W. M.

Levinthal

D. A.

(1989), ‘Empirical studies of innovation and market structure’, in Schmalensee

Willing

R. D.

, eds, Handbook of Industrial Organization, North-Holland, New York, pp 1059–1107.

12.

Cornwall

J. R.

Hartman

E. A.

(1988), ‘A model of organizational entrepreneurship’, paper presented at the World Conference of the International Council of Small Business, Boston, MA.

13.

Cosh

Hughes

(2005), Management Characteristics, Collaboration and Innovation Efficiency: Evidence from UK Survey Data, University of Cambridge, Cambridge.

14.

Damanpour

(1991), ‘Organizational innovation: A meta-analysis of effects of determinants and moderators’, Academy of Management Journal, Vol 34, No 3, pp 555–590.

15.

Drucker

P. F.

(1985), ‘The discipline of innovation’, The Innovative Enterprise, August, pp 95–103.

16.

Drucker

P. F.

(1993), Innovation and Entrepreneurship: Practice and Principles, Harper Business, New York, pp 149–157.

17.

Francis

Bessant

(2005), ‘Targeting innovation and implications for capability development’, Technovation, Vol 25, pp 171–183.

18.

Freeman

Soete

(1997), The Economics of Industrial Innovation, 3 ed, Pinter, London.

19.

Garson

(2006), Multiple Regression, Website: http://faculty.chass.ncsu.edu/garson/PA765/regress.htm (retrieved 17 May 2006).

20.

Geroski

Machin

(1992), ‘Do innovating firms outperform non-innovators?’ Business Strategy Review, Vol 3, No 2, pp 79–90.

21.

Granovetter

(1973), ‘The strength of weak ties’, American Journal of Sociology, Vol 78, No 6, pp 1360–1380.

22.

Hair

J. F.

Anderson

R. E.

Tatham

R. L.

Black

W. C.

(1992), Multivariate Data Analysis, 3 ed, Macmillan, New York.

23.

Hall

R. H.

(1982), Organizations and Process, Prentice Hall, Englewood Cliffs, NJ.

24.

Hoffman

Parejo

Bessant

Perren

(1998), ‘Small firms, R&D, technology and innovation in the UK: A literature review’, Technovation, Vol 18, No 1, pp 39–55.

25.

Holbek

(1990), ‘Lokale innovasjonstiltak: Pådrivers plass som ildsjel og integrator’, in Baldersheim

, ed, Ledelse og innovasjon i kommunene, Tano, Oslo.

26.

Houghton

Sheehan

(2000), A Primer on the Knowledge Economy, Centre for Strategic Economic Studies, Victoria University, Melbourne.

27.

Howell

J. M.

Higgins

C. A.

(1990), ‘Champions of technological innovation’, Administrative Science Quarterly, Vol 35, No 2, pp 317–341.

28.

Jelassi

Enders

(2005), Strategies for e-Business. Creating Value Through Electronic and Mobile Commerce, Pearson Education, Harlow.

29.

Jenssen

J. I.

(2001), ‘Social networks, resources and entrepreneurship’, International Journal of Entrepreneurship and Innovation, Vol 2, No 2, pp 103–109.

30.

Jenssen

J. I.

(2003), ‘Innovation, capabilities, and competitive advantage in Norwegian shipping’, Maritime Policy and Management. An International Journal of Shipping and Port Research, Vol 30, No 2, pp 93–106.

31.

Jenssen

J. I.

(2004), ‘How do corporate champions promote innovations? A literature review’, International Journal of Innovation Management, Vol 8, No 1, pp 63–86.

32.

Jenssen

J. I.

Randøy

(2002), ‘Factors that promote innovation in shipping companies’, Maritime Policy and Management. An International Journal of Shipping and Port Research, Vol 29, No 2.

33.

Jenssen

J. I.

Randøy

(2006), ‘The performance effect of innovation in shipping companies’, Maritime Policy and Management. An International Journal of Shipping and Port Research, Vol 33, No 4, pp 327–343.

34.

Kanter

R. M.

(1983), The Change Masters: Innovation & Entrepreneurship in the American Corporation, Simon and Schuster, New York.

35.

Knowles

Hansen

Shook

(2007), ‘Measuring innovativeness in the North American softwood sawmilling industry using three methods’, Canadian Journal of Forest Research, Vol 38, No 2, pp 363–375.

36.

Lieberman

Montgomery

(1988), ‘First mover advantages: A survey’, Strategic Management Journal, Vol 9, pp 41–58.

37.

Likert

(1932), A Technique for the Measurement of Attitudes, Columbia University, New York.

38.

Lind

M. R.

Zmud

R. W.

(1989), ‘Microcomputer adoption – the impact of organization size and structure’, Information and Management, Vol 16, No 3, pp 157–163.

39.

Littler

D. A.

Sweeting

R. C.

(1985), ‘Radical innovation in the mature company’, European Journal of Marketing, Vol 19, No 4, pp 33–53.

40.

Markside

(1997), ‘Strategic innovation’, Sloan Management Review, Vol 39, No 3, pp 9–15.

41.

Mazzarol

Reboud

(2008), ‘The role of complementary actors in the development of innovation in small firms’, International Journal of Innovation Management, Vol 12, No 2, pp 223–253.

42.

Minzberg

(1979), The Structure of Organizations, Prentice-Hall, Englewood Cliffs, NJ.

43.

Mohr

(1960), ‘Determinants of innovation in organizations’, American Political Science Review, Vol 63, pp 111–126.

44.

Monden

(1991), The Machine that Changed the World, Rawson Associates, New York.

45.

Nøs

S. O.

Sandven

Smith

(1994), Innovasjon og ny teknologi i norsk industri: En oversikt, STEP-gruppen, Oslo.

46.

Nunally

J. C.

(1978), Psychometric Theory, McGraw-Hill, New York.

47.

Nybakk

Crespell

Hansen

Lunnan

(2009), ‘Antecedents to forest owner innovativeness: An investigation of the non-timber forest products and services sector’, Forest Ecology and Management, Vol 257, pp 608–618.

48.

Oviatt

McDougall

(1994), ‘Toward a theory of international new ventures’, Journal of International Business Studies, Vol 25, pp 45–61.

49.

Parikh

(2001), ‘Knowledge management framework for high-tech research and development’, Engineering Management Journal, Vol 13, No 3.

50.

Pavitt

Robson

Townsend

(1987), ‘The size distribution of innovating firms in the UK: 1945–1983’, Journal of Industrial Economics, Vol 35, pp 297–316.

51.

Pearson

A. E.

(1988), ‘Tough-minded ways to get innovative’, Harvard Business Review, Vol 66, No 3, pp 99–106.

52.

Porter

(1990), Competitive Advantage of Nations, MacMillan, London.

53.

Schilling

M. A.

Hill

C. W. L.

(1998), ‘Managing the new product development process: Strategic imperatives’, Academy of Management Executive, Vol 12, No 3, pp 67–82.

54.

Schön

D. A.

(1963), ‘Champions of radical new inventions’, Harvard Business Review, Vol 41, March–April, pp 77–86.

55.

Schumpeter

(1942), Capitalism, Socalism, and Democracy, Harper Brothers, New York.

56.

Senge

P. M.

(1992), The Fifth Discipline: The Art and Practice of the Learning Organization, Random House, London.

57.

Sörebö

A. M.

(2003), En innføring i kvalitativ dataanalyse med SPSS-11.0, Buskerud University College, Kongsberg, Norway.

58.

SSB (2009), ‘Establishment and enterprises’, Statistics Norway, Website: http://www.ssb.no/naeringsliv_en/main.shtml (accessed 12 September).

59.

Stalk

Evans

Shulman

L. E.

(1992), ‘Competing on capabilities: The new rules of corporate strategy’, Harvard Business Review, March–April, pp 57–69.

60.

Thompson

(1969), Bureaucracy and Innovation, University of Alabama Press, Tuscaloosa, AL.

61.

Tidd

Bessant

Pavitt

(1997), Managing Innovation: Integrating Technological, Market and Organizational Change, John Wiley & Sons, Chichester.

62.

Tushman

M. L.

(1977), ‘Special boundary roles in the innovation process’, Administrative Science Quarterly, Vol 22, pp 587–605.

63.

Tushman

M. L.

Scanlan

T. J.

(1981), ‘Boundary spanning individuals: The role in information transfer and their antecedents’, Cybernetics and Systems, An International Journal, Vol 22, pp 109–123.

64.

Walsh

(1992), Winning by Design: Technology, Product Design and International Competitiveness, Basil Blackwell, Oxford.

65.

Wheelwright

S. C.

Clark

K. B.

(1992), Revolutionizing Product Development. Quantum Leaps in Speed, Efficiency, and Quality, Free Press, New York.

66.

Zahra

S. A.

(1993), ‘Environment and financial outcomes of corporate entrepreneurship’, Journal of Business Venturing, Vol 6, pp 319–340.

67.

Zaltman

Duncan

Holbek

(1973), Innovation and Organizations, John Wiley and Sons, New York.

68.

Zangwill

W. I.

(1993), Lightning Strategies for Innovation. How the World's Best Firms Create New Products, Lexington Books, New York.