IMPACT OF INNOVATION PRACTICES ON SUSTAINABLE PERFORMANCE SMEs (original) (raw)
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2015
The business environment is currently characterized by intensified competition at both the national and firm levels. Many studies have shown that innovation positively affect firms in enhancing their competitiveness. Innovation is a dynamic process that requires a continuous, evolving, and mastered management. Evaluating the sustainability of overall innovation capability of a business is a major means of determining how well this firm effectively and efficiently manages its innovation process. A psychometrically valid scale of evaluating the sustainability of overall innovation capability of a firm is still insufficient in the current innovation literature. Thus, this study developed a reliable and valid scale of measuring the sustainability of overall innovation capability construct. The unidimensionality, reliability, and several validity components of the developed scale were tested using the data collected from 175 small and medium-sized enterprises in Iran. A series of systematic statistical analyses were performed. Results of the reliability measures, exploratory and confirmatory factor analyses, and several components of validity tests strongly supported an eight-dimensional (8D) scale of measuring the sustainability of overall innovation capability construct. The dimensions of the scale were strategic management, supportive culture and
Sustainability, 2015
The business environment is currently characterized by intensified competition at both the national and firm levels. Many studies have shown that innovation positively affect firms in enhancing their competitiveness. Innovation is a dynamic process that requires a continuous, evolving, and mastered management. Evaluating the sustainability of overall innovation capability of a business is a major means of determining how well this firm effectively and efficiently manages its innovation process. A psychometrically valid scale of evaluating the sustainability of overall innovation capability of a firm is still insufficient in the current innovation literature. Thus, this study developed a reliable and valid scale of measuring the sustainability of overall innovation capability construct. The unidimensionality, reliability, and several validity components of the developed scale were tested using the data collected from 175 small and medium-sized enterprises in Iran. A series of systematic statistical analyses were performed. Results of the reliability measures, exploratory and confirmatory factor analyses, and several components of validity tests strongly supported an eight-dimensional (8D) scale of measuring the sustainability of overall innovation capability construct. The dimensions of the scale were strategic management, supportive culture and
Innovation and Sustainability in SMEs
Handbook of Research on Intrapreneurship and Organizational Sustainability in SMEs, 2018
Small and Medium Enterprises (SMEs) are the engines of economic growth, promote equitable development and create more opportunities for being innovative in providing sustainable solutions. They also play a crucial role in providing employment opportunities, aid industrialization in rural backward areas, reduce regional imbalances and assure equitable distribution of national income and wealth. But survival in the new global market calls not only for improved productivity but sustainability and growth through innovation on incessant basis. Business sustainability involves self-assessment to identify improvement opportunities, strengths and ideas for future organizational development. In India, though SME is an important contributor to economy, yet many face lot of difficulties and end winding up or becoming unsustainable. Several studies have shown that factors related to poor management, less innovative approaches, short short-termism are the causes of failure or closure. Hence, the...
When the SME competitive advantage is based on the knowledge as is the case in the knowledge economy, innovation and creativity becomes a decisive factor in the economic activity because knowledge tends to be developed in the actual contexts. Technical progress leads to innovation waves and creativity stands in the door way of these phenomena, although it is not usually explicitly associated with it. With this in mind therefore the study is designed to assess the role played by innovation in Small and Medium Enterprises (SMEs) operations sustainability in the manufacturing sector of Chinhoyi. To achieve this, objectives of the study were outlined as follows: to examine types of innovation being conducted in manufacturing SMEs; to identify the factors that influenced innovation in manufacturing SMEs operations sustainability; determine the link between innovation and SMEs operations sustainability; establishing whether SMEs in the manufacturing sector have the capabilities required to execute innovation processes and suggesting innovation processes and activities that SMEs should put into practice. A descriptive survey was used as the research design. SMEs in manufacturing were grouped into sectorial strata and a sample of 30 SMEs across all sectors was selected. Questionnaires and interviews were used to solicit for relevant data. Collected data was presented and analysed using tables, bar charts and pie charts as extracted from Statistical Packages for Social Sciences (SPSS). The hypothesis test was conducted using the SPSS package. On the findings, innovation was found as one of the major attributes which aid SMEs to remain competitive. Findings also points to a strong link between innovation and SMEs operations sustainability. Other research findings reveal managerial characteristics as the most factor which affect SMEs operations positively. However, environmental factors such as government support were considered to be inadequate for the operations of SMEs. These factors if attended to are considered to further boost the operation performance of SMEs. In light of the findings it is recommended that structures, capabilities, culture and entrepreneurial spirit should be developed and cultivated amongst SMEs so as to effectively harness the benefits that come with innovation (operations sustainability and competitive advantage).
PLOS ONE
Innovative performance is a fundamental asset for building competitive advantage of micro, small and medium enterprises MSMEs. This research empirically examines the direct and indirect relationship between eco-innovation and business performance in Jordanian MSMEs enterprises working in the food processing sector. This research draws on the resource-based view theory to investigate the inter-relationships among three types of eco-innovation (process, product, organizational) and their relative impact on business performance. Furthermore, the researchers used structural equation modelling of 86 samples collected from Jordanian MSMEs operating in the food processing sector. The major contribution of this research is providing a holistic view that explains the inter-relationship among eco-process, eco-product, and eco-organizational innovation. The research reveals the impact of eco-innovation variables on business performance. The greatest is the impact of eco-process on business per...
2013
When the SME competitive advantage is based on the knowledge as is the case in the knowledge economy, innovation and creativity becomes a decisive factor in the economic activity because knowledge tends to be developed in the actual contexts. Technical progress leads to innovation waves and creativity stands in the door way of these phenomena, although it is not usually explicitly associated with it. With this in mind therefore the study is designed to assess the role played by innovation in Small and Medium Enterprises (SMEs) operations sustainability in the manufacturing sector of Chinhoyi. To achieve this, objectives of the study were outlined as follows: to examine types of innovation being conducted in manufacturing SMEs; to identify the factors that influenced innovation in manufacturing SMEs operations sustainability; determine the link between innovation and SMEs operations sustainability; establishing whether SMEs in the manufacturing sector have the capabilities required t...
Sustainability
Small and Medium Enterprises’ (SMEs) impact on economic growth is widely acknowledged. Nevertheless, the literature lacks empirical evidence as to how the sustainable performance of manufacturing SMEs in developing countries with unstable and turbulent business environments, such as Palestine, could be enhanced. Relying on the Triple Bottom Line (TBL), Resource-based View (RBV) theory, and sustainable performance literature, this study explores the influence of systematic strategic planning (SSP) and strategic business innovation (SBI) on the sustainable performance (SP) of Palestinian manufacturing SMEs. Based on a sample of 377 manufacturing SMEs in Palestine, 245 valid surveys have been subjected to Partial Least Squares Structural Equation Modeling for analysis using Smart PLS 3.0 software. The results show that various factors can enhance manufacturing SMEs’ sustainability performance, such as adopting a supporting national policy to enhance the concept of sustainability at the...
The Impact of Innovation on the Performance of SMEs in Oman
International Journal of Innovation, Creativity and Change. 13(9). 961-975, 2020
One of the national priorities of Oman Vision 2040, is the Private Sector, Investment, and International Cooperation. The strategic direction of 2040 focuses on enabling the private sector competitive economy which integrates with the world economy. To inspire Omani citizens on the entrepreneurial path and to improve the SMEs performance, the government has been conducting workshops and seminars on small and medium-sized businesses in different regions in Oman. The purpose of this paper is to contribute to the knowledge of entrepreneurship in Oman; hence it studies the impact of innovation on the business performance of SMEs in Oman. The research employed a quantitative approach in gathering and analysing data, using a self-administered questionnaire. The findings of this study concluded that innovation is positively and significantly related to business performance of SMEs in Oman.
Innovation and firm performance: Evidence from Malaysian SMEs
Management Research Journal, 2020
ABSTRAK Kajian ini direka untuk mengkaji dan menganalisis kesan inovasi produk dan proses inovasi terhadap prestasi firma Perusahaan Kecil Sederhana (PKS) dalam industri perkhidmatan di Malaysia. Populasi responden adalah pengurus pemilik 150 firma PKS, yang membentuk kadar tindak balas 18%. Untuk menguji hubungan pemboleh ubah, Pemodelan Persamaan Struktur Secara Separa Separa (PLS-SEM) digunakan. Hasil analisa menunjukkan bahawa, inovasi produk dan proses mempunyai kesan positif sebanyak 43% terhadap prestasi keseluruhan firma. Syarikat PKS yang menekankan inovasi produk dan proses terbukti dapat meningkatkan prestasi. Kajian ini menekankan bahawa inovasi adalah aspek penting dalam semua aktiviti keusahawanan yang seterusnya memastikan peningkatan prestasi syarikat. Kata kunci: innovasi produk, innovasi proses, penutupan syarikat, prestasi firm PKS, Malaysia. Abstract The study is designed to examine and analyze the effects of product innovation and process innovation on firm performance of Small Medium Enterprises (SMEs) within the service industry in Malaysia. The populations of the respondents are owner managers of 150 SME firms, constituting 18% response rate. To test the relationship of the variables, Partial Least Squares Structural Equation Modeling (PLS-SEM) is utilized. Results of the analysis indicate that, product and process innovation positively impact as much as, 43% on overall firm's performance. SME firms' that emphasizes product and process innovation are proven to improve the performance. The study highlights that innovation is important aspect in all entrepreneurial activities that further ensure improved firm performance.
Sustainability
Small and Medium-Sized Enterprises (SMEs) play a crucial part in a country’s economic growth and sustainable development. The purpose of this study is to investigate the relationship between innovation and the performance of SMEs. An external environmental factor acts as a moderating variable between the exogenous and endogenous variables. Data were collected from 350 textile SMEs operating in Pakistan using a cross-sectional study design through self-administered questionnaires. Of these, only 335 surveys were valid for further analysis. The structural equational modeling technique was used for analyzing the data and testing the hypotheses that innovation and the external environment affect an SME’s performance. The results indicate a significant association between innovation and SME performance, and the external environment has a moderating impact on innovation and SME performance. This paper offers valuable recommendations to senior managers and owners of SMEs to consider the in...