Determinants of innovation

Jorge Aníbal Restrepo-Morales, Osmar Leandro Loaiza, Juan Gabriel Vanegas
2019 Journal of Economics Finance and Administrative Science  
Purpose -This paper aims to study the influence of innovation on micro, small and medium-sized enterprises (MSME) performance in Colombia through the 403 MSMES survey analysis. In particular, this paper measures the effect of participation in R&D alliances, product innovation and process innovation on it. Design/methodology/approach -MSME performance is measured through a composite index, estimated through principal components analysis using polychoric correlations, which is based on eight
more » ... based on eight selfreported assessments of MSME performance. Then, this measure of performance is related to MSME participation in R&D alliances and the product and process development stance of the MSME based on an adaptation of the Miles and Snow business classification scheme, by means of an ANOVA and a linear regression. Findings -Colombian SMEs are not significantly benefitted from participation on R&D alliances. Instead, their performance appears to be dependent upon their internal innovation efforts directed to product development. Moreover, the results suggest that imitators get a performance almost as high as innovators. Originality/value -Innovation activities in Colombian SMEs are carried out informally, as they are mostly uninterested to engage in R&D activities and to develop new products by own initiative. Moreover, few of them have an R&D department. In regard to technology, results suggest that almost half of SMEs are classified as followers, namely, they use the same technology as competitors.
doi:10.1108/jefas-09-2018-0095 fatcat:7r6wms7eerb7lixaz43k52kzzi