Journal of Economics Finance and Administrative Science (Jun 2019)

Determinants of innovation: A multivariate analysis in Colombian micro, small and medium-sized enterprises

  • Jorge Aníbal Restrepo-Morales,
  • Osmar Leandro Loaiza,
  • Juan Gabriel Vanegas

DOI
https://doi.org/10.1108/JEFAS-09-2018-0095
Journal volume & issue
Vol. 24, no. 47
pp. 97 – 112

Abstract

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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 self-reported 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.

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