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Identifying key determinants for new product introductions and firm performance in small service firms

Author

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  • Patrick A.M. Vermeulen
  • Jeroen P.J. De Jong
  • K.C. O'shaughnessy

Abstract

Small firms have gained increasing attention in the innovation literature. Focusing mainly on manufacturing based literature we identified several key factors that contribute to the innovative potential of small firms. However, we do not know if these factors are recognised and used in small service firms. Distinguishing various types of service industries, our goal with this paper is threefold. First, we describe to what extent service firms use the key factors to their advantage. Second, we try to establish if there is a relation between the key factors and new product introductions. Third, we want to see if new product introductions indeed contribute to firm performance. After a survey among 502 Dutch service firms, we reveal some major differences between various types of service industries.

Suggested Citation

  • Patrick A.M. Vermeulen & Jeroen P.J. De Jong & K.C. O'shaughnessy, 2005. "Identifying key determinants for new product introductions and firm performance in small service firms," The Service Industries Journal, Taylor & Francis Journals, vol. 25(5), pages 625-640, July.
    • Handle: RePEc:taf:servic:v:25:y:2005:i:5:p:625-640
    DOI: 10.1080/02642060500100783
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    References listed on IDEAS

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    1. Jan de Kok, 2003. "Human Resource Management within small and medium-sized enterprises," Scales Research Reports N200310, EIM Business and Policy Research.
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    Cited by:

    1. Antonio L. Leal-Rodríguez & Gema Albort-Morant & Silvia Martelo-Landroguez, 2017. "Links between entrepreneurial culture, innovation, and performance: The moderating role of family firms," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 819-835, September.
    2. Yu Mu & Bart Bossink & Tsvi Vinig, 2018. "Employee involvement in ideation and healthcare service innovation quality," The Service Industries Journal, Taylor & Francis Journals, vol. 38(1-2), pages 67-86, January.
    3. Lilian Santos & Aurora A.C. Teixeira, 2013. "Determinants of innovation performance of Portuguese companies: an econometric analysis by type of innovation and sector with a particular focus on Services," FEP Working Papers 494, Universidade do Porto, Faculdade de Economia do Porto.
    4. Muhammad Zubair Alam & Nadia Nasir & Ch. Abdul Rehman, 2020. "Intrapreneurship concepts for engineers: a systematic review of the literature on its theoretical foundations and agenda for future research," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-21, December.
    5. Anh Ngoc Mai & Huong Van Vu & Bien Xuan Bui & Tuyen Quang Tran, 2019. "The lasting effects of innovation on firm profitability: panel evidence from a transitional economy," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 3417-3436, January.
    6. Jamel Chouaibi, 2021. "Innovation and Financial Performance in Manufacturing Companies: an Empirical Study Tunisian," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(4), pages 1870-1890, December.
    7. Jaime Guerrero‐Villegas & Laura Sierra‐García & Beatriz Palacios‐Florencio, 2018. "The role of sustainable development and innovation on firm performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1350-1362, November.
    8. Alfonso Expósito & Juan A. Sanchis-Llopis, 2019. "The relationship between types of innovation and SMEs’ performance: a multi-dimensional empirical assessment," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(2), pages 115-135, June.
    9. Veronika Bumberová & František Milichovský, 2020. "Influence of Determinants on Innovations in Small KIBS Firms in the Czech Republic before COVID-19," Sustainability, MDPI, vol. 12(19), pages 1-21, September.
    10. Rosenbusch, Nina & Brinckmann, Jan & Bausch, Andreas, 2011. "Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs," Journal of Business Venturing, Elsevier, vol. 26(4), pages 441-457, July.
    11. Antonio L. Leal-Rodríguez & Gema Albort-Morant & Silvia Martelo-Landroguez, 0. "Links between entrepreneurial culture, innovation, and performance: The moderating role of family firms," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-17.
    12. Muller, Emmanuel & Doloreux, David, 2009. "What we should know about knowledge-intensive business services," Technology in Society, Elsevier, vol. 31(1), pages 64-72.
    13. Alfonso Expósito & Juan A. Sanchis-Llopis, 2018. "Innovation and business performance for Spanish SMEs: new evidence from a multi-dimensional approach," Working Papers 1805, Department of Applied Economics II, Universidad de Valencia.
    14. H. T. Tran & E. Santarelli, 2013. "Determinants and Effects of Innovative Activities in Vietnam. A Firm-level Analysis," Working Papers wp909, Dipartimento Scienze Economiche, Universita' di Bologna.
    15. Santos-Vijande, María Leticia & López-Sánchez, Jose Ángel & Pascual-Fernández, Primitiva & Rudd, John M., 2021. "Service innovation management in a modern economy: Insights on the interplay between firms’ innovative culture and project-level success factors," Technological Forecasting and Social Change, Elsevier, vol. 165(C).
    16. Lu Lin Zhou & James Onuche Ayegba & Emmanuel Onu Ayegba & Peace Maina Ayegba & Zhang Xin Jie, 2021. "Impact of dynamic capacities on the performance of food and beverage enterprises in Lagos, Nigeria," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-24, December.
    17. Adli Abouzeedan & Magnus Klofsten & Thomas Hedner, 2013. "Internetization Management as a Facilitator for Managing Innovation in High-Technology Smaller Firms," Global Business Review, International Management Institute, vol. 14(1), pages 121-136, February.

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