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Innovation and the growth of service companies: the variety of firm activities and industry effects

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  • Krzysztof Szczygielski
  • Wojciech Grabowski
  • Richard Woodward

Abstract

This paper examines the relationship between innovation performance and employment growth in firms by taking a closer look at specific innovation activities and industry effects in the context of the services sector. Firm-level CIS data on Polish services firms in 2004–2009 are analysed using robust M-estimation. The results indicate that the effects of product, process and organisational innovations depend strongly on the level of technological opportunities in the industry in question. Given the widely acknowledged role of marketing innovations in services, possible synergies between innovations in the form of new products and new marketing techniques are also analysed. We demonstrate that marketing innovations are conducive to firm growth if they complement product innovations, but they are less likely to foster growth when applied in isolation.

Suggested Citation

  • Krzysztof Szczygielski & Wojciech Grabowski & Richard Woodward, 2017. "Innovation and the growth of service companies: the variety of firm activities and industry effects," Industry and Innovation, Taylor & Francis Journals, vol. 24(3), pages 249-262, April.
    • Handle: RePEc:taf:indinn:v:24:y:2017:i:3:p:249-262
    DOI: 10.1080/13662716.2016.1232191
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    References listed on IDEAS

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    1. Subodh Kandamuthan, 2002. "Market Concentration, Firm Size and Innovative Activity: A Firm-level Economic Analysis of Selected Indian Industries under Economic Liberalization," WIDER Working Paper Series DP2002-108, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Rubio-Andrés, Mercedes & Ramos-González, Mª del Mar & Sastre-Castillo, Miguel Ángel & Gutiérrez-Broncano, Santiago, 2023. "Stakeholder pressure and innovation capacity of SMEs in the COVID-19 pandemic: Mediating and multigroup analysis," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    2. Lukasz Arendt & Wojciech Grabowski, 2017. "Innovations, ICT and ICT-driven labour productivity in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 25(4), pages 723-758, October.
    3. Mercedes Rubio-Andrés & Mª Ramos-González & Miguel Ángel Sastre-Castillo, 2022. "Driving innovation management to create shared value and sustainable growth," Review of Managerial Science, Springer, vol. 16(7), pages 2181-2211, October.
    4. María del Mar Ramos-González & Mercedes Rubio-Andrés & Miguel Ángel Sastre-Castillo, 2022. "Effects of socially responsible human resource management (SR-HRM) on innovation and reputation in entrepreneurial SMEs," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1205-1233, September.

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