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Effects Of Product Innovation And Organisational Capabilities On Competitive Advantage: Evidence From Uk Small And Medium Manufacturing Enterprises

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  • ANA CRISTINA O. SIQUEIRA

    (University of Cambridge Judge Business School, Trumpington Street, Cambridge CB2 1AG, UK)

  • ANDY D. COSH

    (University of Cambridge Judge Business School, Trumpington Street, Cambridge CB2 1AG, UK)

Abstract

We investigate the extent to which product innovation moderates the relationship between capabilities and competitive advantage among small and medium enterprises (SMEs). Using resource-based and capabilities theories, we examine capabilities as organisational routines, focusing on job rotation and multi-skilling. We examine competitive advantage by using logistic regression to assess the probability of top performance in productivity relative to most other firms in the same industry. Considering the path-dependence in developing capabilities and innovation, we use a longitudinal sample of 300 UK manufacturing SMEs in traditional and high-technology industries to evaluate the effects of innovating and using capabilities continuously over time. The results suggest that firms using job rotation or multi-skilling and introducing product innovations consistently from 2002 through 2004 are more likely to be top performers in 2004. The findings support a theoretical model according to which the association between capabilities and competitive advantage is moderated by innovation.

Suggested Citation

  • Ana Cristina O. Siqueira & Andy D. Cosh, 2008. "Effects Of Product Innovation And Organisational Capabilities On Competitive Advantage: Evidence From Uk Small And Medium Manufacturing Enterprises," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 12(02), pages 113-137.
    • Handle: RePEc:wsi:ijimxx:v:12:y:2008:i:02:n:s1363919608001972
    DOI: 10.1142/S1363919608001972
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    References listed on IDEAS

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    Cited by:

    1. Fascia, Michael & fascia, sonny, 2019. "Creativity as a Competitive Entrepreneurial Enabler," OSF Preprints wqtvh, Center for Open Science.
    2. Beldina Owalla & Cristian Gherhes & Tim Vorley & Chay Brooks, 2022. "Mapping SME productivity research: a systematic review of empirical evidence and future research agenda," Small Business Economics, Springer, vol. 58(3), pages 1285-1307, March.
    3. Stephanie E. Mansion & Andreas Bausch, 2020. "Intangible assets and SMEs’ export behavior: a meta-analytical perspective," Small Business Economics, Springer, vol. 55(3), pages 727-760, October.
    4. Giacomo Marzi & Lamberto Zollo & Andrea Boccardi & Cristiano Ciappei, 2018. "Additive Manufacturing in SMEs: Empirical Evidences from Italy," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 1-22, February.
    5. Seth Amoako & Elvis Boateng, 2022. "Considering factors that leads to sustainability of Small and Medium Enterprises in Ghana using PESTEL and theories of entrepreneurship as a measuring tool," Technium Social Sciences Journal, Technium Science, vol. 31(1), pages 594-653, May.
    6. Christian Corsi & Antonio Prencipe, 2019. "DOES CEO PROMOTE INNOVATION IN SMEs? A COMPARISON BETWEEN INTERNAL AND EXTERNAL CEO," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-19, June.

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