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Determinants of innovativeness in SMEs: disentangling core innovation and technology adoption capabilities

Author

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  • Juan A. Martínez-Román

    (University of Seville)

  • Isidoro Romero

    (University of Seville)

Abstract

This paper studies innovativeness in SMEs from a set of innovation indicators at the firm level, capturing various types of innovation (product, process, organisational, and marketing innovations) and the level of innovativeness in these firm’s developments. The article identifies two separate dimensions in the innovativeness of Spanish SMEs, using factor analysis techniques. One dimension is associated with the capabilities for core/internal innovation and the other with the capabilities for the adoption of technology. The paper shows that significant differences exist in the personal and organisational factors that favour these two dimensions. The entrepreneur’s motivation, business planning, and cooperation in R&D activities constitute significant factors when considering the core dimension of a firechnology adoption. However, the use of external consultancy services seems to have no significant effect on the core dimension of the innovativeness of an SME, whereas it is a relevant factor for its technology adoption. Furthermore, it is shown that the entrepreneur’s education plays a more significant role in the core dimension of a firm’s innovativeness than in its capabilities for technology adoption. Depending on the policy objectives, these differences should lead to the application of specific policy approaches when an attempt to stimulate innovation in SMEs is made.

Suggested Citation

  • Juan A. Martínez-Román & Isidoro Romero, 2017. "Determinants of innovativeness in SMEs: disentangling core innovation and technology adoption capabilities," Review of Managerial Science, Springer, vol. 11(3), pages 543-569, July.
    • Handle: RePEc:spr:rvmgts:v:11:y:2017:i:3:d:10.1007_s11846-016-0196-x
    DOI: 10.1007/s11846-016-0196-x
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    More about this item

    Keywords

    Innovation; Innovativeness; SMEs; Entrepreneur; Spain;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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