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Firm-level innovation in sub-Saharan Africa remains under-researched. To address this gap, this paper examines the obstacles to innovation faced by small, micro, and medium-sized enterprises (SMMEs) in South Africa. Using the 2018 Business Innovation Survey, we apply the double-hurdle model to investigate factors determining a firm's decision to invest, and the intensity of innovation. Our results show that cost and institutional obstacles were significantly more important as disincentive factors for medium-sized enterprises while knowledge obstacles were significant disincentive factors for large enterprises. In addition, market obstacles hampered investment among large enterprises. Interestingly, none of these factors was found to deter innovation intensity among small and micro enterprises. The study findings suggest that there is no one-size-fits-all approach to innovation policy and intervention programmes to support innovation within firms of different sizes. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to investigate the impact of innovation on productivity in the services sector firms in South Africa. Using a three-stage econometric model we find that service sector firms are innovative. We show that firm size, public financial support, patent protection and market sources of information have a positive impact on the decision to innovate. The level of investment in innovation significantly influences the success of both technological and non-technological innovations in service sector firms. The results find that both technological and non-technological innovations have a positive impact on labour productivity, with a greater impact from non-technological innovation. [ABSTRACT FROM AUTHOR]

This article aims to investigate the relationship between cluster organisation membership and the performance of companies in terms of their technological maturity. The article introduces and operationalises a new concept of technological maturity which reflects competitiveness, innovativeness, and market reputation of a company in a particular sector. To compare the technological maturity between cluster organisation members and non-members a composite index was created. The study is based on theoretical and empirical analyses. The empirical part is based on firm-level data collected in the survey from 464 companies identified in the technological fields covered by the National Smart Specializations in Poland. A set of statistical tests has been employed to assess whether (a) the indicators differ significantly between cluster organisation members and non-members (b) the composite index differs significantly between cluster organisation members and non-members. Results of the analysis show a positive relationship between being a member of the cluster organisation and the technological maturity of the company. The regression analysis proved that the relationship remains significant when controlling for the industry, geographical location, and size of a company. The article contributes to the discussion about the role of cluster organisations and their economic impact. [ABSTRACT FROM AUTHOR]

Purpose: Our understanding of the influence of institutional conditions on process innovation is still limited, despite managers' need to know which factors should be considered in decision-making and governments should be aware of how to foster process innovation through the provision of attractive institutions. Therefore, this paper aims to examine how institutional dimensions such as workforce, political instability, labor regulation, corruption, tax administration and transportation influence process innovation in smaller firms located in emerging countries other than the BRICS (Brazil, Russia, India, China and South Africa). Design/methodology/approach: A data set from the World Bank Enterprise Surveys questioning over 20,000 companies from 41 emerging countries supplemented by the gross domestic product (GDP) per capita for each country was used and analyzed by the means of general linear mixed models. The analysis emphasized small- and medium-sized enterprises (SMEs) and excluded BRICS countries. Findings: The findings demonstrate which institutional factors matter for process innovation depending on company size and GDP. Research limitations/implications: This paper advances research on the influence of institutions on firm innovation – the institution–process innovation relationship in emerging countries other than the BRICS in particular. By considering the role of company size and GDP per capita on the institution–process innovation relationship, the paper offers more nuanced insights compared with prior studies and thus makes a strong contribution to the innovation theory. The data used are not suitable for a longitudinal study the same refers to capturing the variety found in the countries even those coming from the same geographic area. Practical implications: The results provide practitioners, e.g. managers of SMEs, with concrete ideas on how to improve process innovation in their companies. Other actors such as policymakers too can benefit from the results as they will allow the design of more target group-oriented measures, aspects that can ultimately lead to more sustainable businesses. Originality/value: By focusing on process innovation and emerging countries, the paper contributes to growing research efforts in emerging countries beyond the BRICS. Thus, the results add more diversity to the study of process innovation and its influencing external (institutional) factors. The emphasis on SMEs also allows us to highlight differences between different categories of SMEs. [ABSTRACT FROM AUTHOR]

We have examined whether institutional ownership and family control in Malaysia are linked to capital spending. Using panel data from 220 listed companies in Malaysia, we showed that institutional ownership is positively associated with capital expenditure (CAPEX). Consistent with institutional investors' monitoring role in corporate governance, the results indicate that this relationship was driven by the presence of growth opportunities. However, we found that family control was negatively associated with CAPEX. Additional analyses showed that this relationship was moderated by company size. While larger family firms invest less in CAPEX, smaller family firms invest more in CAPEX, indicating that the benefits of lower agency conflicts in family firms hold only for smaller firms. Our results are robust to alternative empirical measurements that account for firm characteristics and the endogeneity of institutional shareholding. [ABSTRACT FROM AUTHOR]

We investigate four contributors to crisis readiness: market turbulence, innovative capacity, perceived likelihood of a crisis (PLC) and firm size. Results from a PLS‐SEM assessment of 284 managers in the United States suggest that market turbulence is not only a precursor to crisis readiness but also affects PLC and innovative capacity in firms. We conclude that managers in SMEs were more likely to expect a crisis but less prepared to address one when it strikes. [ABSTRACT FROM AUTHOR]

The purpose of this study is to examine the interrelationships among the variables of the entrepreneurial orientation (EO) of agrarian management, innovative work behaviour (IWB) of employees, knowledge-based dynamic capabilities (KBDC) and innovative performance (IP) of agrarian enterprises. We analysed not only direct effects but also the possibilities of mediating these effects to increase the overall effect on IP. A questionnaire survey was used to collect data from managers of agribusinesses in Slovakia (175 respondents). We used the partial least squares structural equation modelling method and the appropriate software to test the theoretical research model and the proposed hypotheses to examine the relationships among the individual selected constructs in more depth. The findings point to the existence of a statistically significant relationship between EO and IP, which, however, is weaker than the overall effect of the involvement of mediation variables. Each mediation variable (IWB and KBDC) increases the overall effect separately, but their joint mediation action is of the greatest importance, when full mediation takes place. The strength of the relationship between the two main variables is also influenced by the size of the agrarian enterprise such that being larger has a negative moderation effect. Significant differences were also identified in the legal forms of business in favour of companies over agricultural co-operatives (ACs). [ABSTRACT FROM AUTHOR]

Most of the evidence that has been documented on the impact of demographic factors on innovation has primarily focused on large businesses, and there has been little focus on small businesses. The literature continues to confirm that innovation is a key success factor for any type and size of business, especially for small businesses in emerging economies. This current research focuses on exploring the topic of small accommodation businesses (SABs) with evidence from two developing economies, the Free State province in South Africa and Manicaland in Zimbabwe. The research adopted a survey design where primary data were retrieved from a sample of 278 randomly selected individuals with origins in the two economies. The results of the study showed: (i) innovativeness in SABs is influenced by the age and experience of the managers or owners in one of the countries and when the scores of the two countries are aggregated; (ii) Younger owner and managers were found to be more creative and innovative than their older counterparts who were more experienced. It is, therefore, necessary that owners of SABs continue to employ and invest in young people. Their energy, education, and ability to innovate make them an invaluable investment to ensure the competitive advantage and long-term sustainability of SABs. [ABSTRACT FROM AUTHOR]

The paper discusses scientific arguments and counterarguments about companies’ innovative activity, size, and geographic location of the sales market. The study’s foremost purpose is to empirically check if theoretical statements about a company’s size, export, and innovative activity are associated. Therefore, the questions discussed in this paper are a) Does an enterprise-size matter an enterprise innovation activity? b) Is there is a difference in innovation activity by Classification of Economic Activities (NACE groups)? c) Does the geographic location of the sales market matter the company's innovation activity? The research questions are discussed based on Armenian firm-level data. The findings could be applied mainly to the microeconomic environment of Armenia. The study involved R programming language Wilcoxon test, ANOVA, Tukey test, and Chi-square test are applied. The obtained results showed that the enterprise’s size does not matter an enterprise’s innovative activity. Even though larger companies have more resources to innovate, smaller companies are more flexible and agile. Therefore, the enterprise size is not a limiting factor. The results showed that the companies in some fields of the economy are more prone to innovate than others. In Armenia, most innovative enterprises operate in the group MProfessional, scientific and technical activities and the group C-Manufacturing. The research empirically confirms that when considering a company’s innovative activity, the sphere of the economy in which it operates has statistically significant importance in contrast with the company’s size. The findings by the Chi-Square test showed that a significantly higher number of EU exporting companies had made innovations. In contrast, companies selling their products/services in the local market have made significantly fewer innovations than expected if there would be no association between innovations and the geographic location of the sales market. Therefore, the exporting companies are more innovative than those that sell their products in the local market. Besides, the most innovative firms are EU exporting enterprises. In empiric studies, export is used as a proxy of international competitiveness due to its ability to show a country’s capacity in producing and selling in the international market. Therefore, the analysis of Armenian firm-level data showed the association between innovation and international competitiveness. [ABSTRACT FROM AUTHOR]

Purpose: Building on the resource-based view theory, this paper aims to evaluate the role of innovation on competitiveness and competitive efficiency among Costa Rican small and medium-size enterprises (SMEs). Design/methodology/approach: The study uses a sample of 231 Costa Rican small and medium-size firms for 2019. The authors compute a competitiveness index that includes four pillars: innovation, strategy, markets and human capital. To estimate competitive efficiency, the authors use a non-parametric model, namely, data envelopment analysis, with a single constant input. Findings: The results confirm that competitive and efficient SMEs present a more homogenous distribution of resources and capabilities. The innovation pillar is positively correlated with competitive efficiency. A positive correlation exists between market experience (business age) and innovation and between innovation and business size in terms of the number of employees. Practical implications: The study contributes to the understanding on how SME managers' decision-making processes affect resource allocation within the business, and on how SMEs can introduce strategic actions based on improvements of those resources that will likely have a greater impact on competitive efficiency. Originality/value: This study contributes to better grasping how the configuration of resources and capabilities, in which innovation plays a decisive role, and contributes to shape the competitive efficiency of small and medium-sized businesses in a developing economy. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to show the interaction effects between clusters and cluster-specific attributes and the industrial internet of things (IoT) knowledge of a firm on the innovativeness of firms. Cluster theory and the concept of key enabling technologies are linked to test their effect on a firm's incremental and radical knowledge generation. Design/methodology/approach: Quantitative approach at the firm-level. By combining several data sources (e.g. ORBIS, PATSTAT and German subsidy catalogue) the paper relies on a unique database encompassing 8,347 firms in Germany. Ordinary least squares (OLS)-regression techniques are used for data analysis. Findings: Industrial IoT is an important driver of radical patents, mediated positively by firm size. For incremental knowledge, a substitution effect occurs between a cluster and IoT effects, which is bigger for larger firms and dependent on cluster attributes and firms' outside connections. Research limitations/implications: The paper opens up new research paths considering long-term disruptive effects of the industrial IoT compared to short-term effects on the innovativeness of firms within clusters. Additionally, it enables further research enriching the discussion about cluster attributes and how these affect ongoing processes. Practical implications: Linking cluster theory and policy with Industry 4.0 raises awareness for being considerate in terms of funding and scrutinising one-size-fits-all approaches. Originality/value: Connecting the concepts of a cluster and advanced manufacturing technologies as a proxy for industrial IoT, specifically focussing on both radical and incremental innovations is a new approach. Especially, taking into account the interaction effects between cluster attributes and the influence of industrial IoT on the innovativeness of firms. [ABSTRACT FROM AUTHOR]

In times of crisis, innovation and entrepreneurship can be considered as a path out of valuation uncertainty of firms. All types of innovation output, however, may not have a similar impact across different firm size and sectors during bad times. Specifically, financially less-constrained (high leverage) innovative firms could be valued higher or experience less uncertainty in their performance. By considering the innovation intensity and leverage in pre- and post-2008 financial crisis periods, and using firm-level quarterly data from listed firms in the UK during 2000–2014, we find that leveraged firms can achieve greater valuation and mitigate any valuation uncertainty in the post-crisis period if they are knowledge- or high-technology intensive. In terms of size effect, although leverage distorts market valuation of large UK firms, the impact is positive for SMEs that are innovation intensive. Finally, in terms of sectoral effect, firms within manufacturing and services with leverage have benefitted from R&D and patenting activities during the post-crisis period, but not in the pre-crisis period. This also gets revealed when we classify all firms into high-tech and low-tech sectors, implying that firms in the high-tech sectors with debt dependence have benefitted favorably in terms of higher valuation and lower uncertainty in the post-crisis period, not firms in the low-technology sectors, reflecting further the role of technological intensity in firm valuation. [ABSTRACT FROM AUTHOR]

Information and communication technology (ICT) has become increasingly important in public service provision (e-services). Although most studies conclude that large organizations have higher quality e-service systems, few have studied if the effect of size persist over time. Empirically, this article reports how organizational size affects adoption and development of e-services in all Norwegian municipalities over a 13 year period (2001–2013). Seven different studies, conducted by four independent institutions, mapped the existence and quality of municipal web-sites. Controlling for several system characteristics, the study indicates that size has ambiguous effects concerning adoption, but a strong and positive effect on the quality of e-services. [ABSTRACT FROM AUTHOR]

This article presents an understanding of innovation in the Indian context by considering the relationship between firm size and innovation. This is based on a major study on innovation where survey of Indian firms was undertaken by the research team to understand the process in the Indian context. In this article the focus is on the relationship between firm size and propensity to innovate. The interesting observation is that the small-sized firms focus mostly on minor or marginal innovations which are either not recognized or go unnoticed in the market. The purpose behind such initiatives is to enable them to sustain in the market. This brings in an interesting dimension of the process of innovation where the firms innovate not to create market, but to sustain themselves in the market. The article presents variation in the innovation activities amongst the firms depending upon their size. [ABSTRACT FROM AUTHOR]

In this paper we study the effect of financial constraints on innovation using data from a 2007 survey of more than 10,000 Chilean firms. In contrast with other surveys, this dataset allows for the construction of a direct indicator of constraints on credit for investment in innovation and sheds light on how these restrictions affect firm's innovation outcomes heterogeneously. In our empirical approach, we deal with several econometric problems associated with the endogeneity of the credit constraint indicator and the binary nature of the innovation variable. We find that financial constraints are quantitatively important barriers for innovation in Chile. These constraints are particularly severe in the case of small firms and firms operating in the service sectors. We also find that these constraints are specific to innovation-related investments and particularly with regard to the accumulation of intangible assets. [ABSTRACT FROM AUTHOR]

It is imperative that public procurement opportunities are made equally accessible to all size businesses to ensure a fair and level competitive playing field. “Innovation,” as the creative process of exploiting new ideas, has become widely recognized as playing a central role in the economic recovery of Europe and so too are the small and medium size enterprises (SMEs) who are considered as major promoters of innovation and innovative solutions. At a national level, the implementation of European Union (EU) policies on SMEs and innovation inclusion in public procurement, while of paramount importance to Irish policy-makers to ensure alignment and compliance, seems, however, to have a significant lack of monitoring and reporting mechanisms. It is found that a lack of commitment and drive from the top, a lack of robust measurements and monitoring mechanisms combined with contrasting political agendas, and a very risk averse culture have collectively added to government intentions being ignored in many instances. [ABSTRACT FROM PUBLISHER]

From the inclusion of Mexico in the OECD, this research paper attempts to answer the question of technological innovation for increasing the competitiveness of the four largest firms in the state of Quintana Roo, Mexico economically and socially based on their size and characteristics. The research was part of a study conducted in the southeast of Mexico and it was sponsored by the FORDECyT. The current model of the OECD (2009-2010) with standards on the appropriation of knowledge, adapted to the direct interview method was used for the analysis.Although the results showed a noticeable backwardness in the four companies analyzed regarding the appropriation of knowledge, they also show ethnic and cultural differences in the Maya peoples living in this region when it comes to social businesses. They adopt complete technological packages and / or globalizing market models. When facing the impossibility of adopting or appropriating socially the knowledge, they are dependent on their workforce or their ancestral patterns of production and exploitation of the main resource. [ABSTRACT FROM AUTHOR]

In this study, we aim to find the determinants of innovation in the agrifood industry in an inland region in southeast Spain, which depends upon and specializes in this sector. The determinants we propose are firm and environmental factors. From the empirical analyses based on Box–Cox models, we deduce that a firm's internal factors or characteristics are those that have the greatest influence on its propensity to innovate. Among them, firm size has the greatest effect. Innovation culture has the potential for exerting a multiplying effect via mechanisms such as knowledge spillovers or learning by doing. [ABSTRACT FROM AUTHOR]