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Predicting Innovation Activity In European Manufacturing Firms: A Multi-Country Empirical Study

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  • Avraam Papastathopoulos
  • Christina C. Beneki

Abstract

The purpose of this paper is to investigate the factors that influence the Internal Process Innovation (IPI) Activity of the European manufacturing firms. Moreover, a predictive model is developed that can be used to predict which manufacturing firms are more likely to introduce any new or significantly improve their internal processes. This survey is part of the e-Business Watch, a service launched in 2007 and provided by empirica GmbH to the European Commission, Enterprise and Industry Directorate General, in co-operation with renowned international partners. In the present study, 914 European manufacturing small, medium and large enterprises were examined and a set of hypotheses, regarding their innovation activity, were developed. The results showed that the adoption of Enterprise Resource Planning (ERP), Customer Relationship Management (CRM) and the electronic information exchange between business partners are positively related to firm’s process innovation activity. Moreover, the results revealed that the employment of ICT-qualified employees, investments in ICTs, firm size and longterm relationships with suppliers also played a major role for European manufacturing firms to conduct internal innovations. The paper highlights the fact that the innovation activity of the firms is deeply affected by a number of different factors, both internally and externally.

Suggested Citation

  • Avraam Papastathopoulos & Christina C. Beneki, 2011. "Predicting Innovation Activity In European Manufacturing Firms: A Multi-Country Empirical Study," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 4(2), pages 49-65.
    • Handle: RePEc:ibf:ijmmre:v:4:y:2011:i:2:p:49-65
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    References listed on IDEAS

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    More about this item

    Keywords

    Innovation activity; Processes improvement; ICT; Manufacturing firms;
    All these keywords.

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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