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FAST-GROWING SMEs AND THE ROLE OF INNOVATION

Author

Listed:
  • CHRISTINA GRUNDSTRÖM

    (Industrial Marketing, Department of Management and Engineering, SE-581 83 Linköping, Sweden)

  • ROLAND SJÖSTRÖM

    (Industrial Marketing, Department of Management and Engineering, SE-581 83 Linköping, Sweden)

  • ANDERS UDDENBERG

    (Industrial Marketing, Department of Management and Engineering, SE-581 83 Linköping, Sweden)

  • ANNA ÖHRWALL RÖNNBÄCK

    (Industrial Marketing, Department of Management and Engineering, SE-581 83 Linköping, Sweden)

Abstract

In a study of 409 Swedish SMEs, the difference between the highest growing, which can be characterized as gazelles, and the lowest growing companies were examined regarding performance change over a four year period and what contributed to the growth from an innovation perspective. It was concluded that, besides growing, the highest growing companies also showed high profitability,increased number of employees, and significantly higher markets shares locally, nationally and internationally than the lowest growing companies. Several traits were found to contribute to this. The highest growing companies had a significantly higher portion of new products as part of the turnover during the four years studied and they perceived themselves as differentiating from their competitors concerning: (1) offering better products, (2) understanding customer needs better, (3) having a higher pace or being more agile, and (4) keeping costs down. They also found it more important to take risks, reinvest any profit, and to focus on growth than the lowest growing companies, and this regardless of industry.

Suggested Citation

  • Christina Grundström & Roland Sjöström & Anders Uddenberg & Anna Öhrwall Rönnbäck, 2012. "FAST-GROWING SMEs AND THE ROLE OF INNOVATION," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 1-19.
    • Handle: RePEc:wsi:ijimxx:v:16:y:2012:i:03:n:s1363919612400038
    DOI: 10.1142/S1363919612400038
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    References listed on IDEAS

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    1. Alex Coad, 2009. "The Growth of Firms," Books, Edward Elgar Publishing, number 13424, March.
    2. van Damme, E.E.C., 2010. "Welzijn in perspectief," Other publications TiSEM 48b64718-2659-485e-bc2e-e, Tilburg University, School of Economics and Management.
    3. Okada, Akira, 2010. "Toshiji Kawagoe, Experimental Economics," Economic Review, Hitotsubashi University, vol. 61(1), pages 85-87, January.
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    Cited by:

    1. Shu, Jinhao, 2021. "The M&A Behavior of Family Firms," Junior Management Science (JUMS), Junior Management Science e. V., vol. 6(4), pages 673-699.
    2. Sohaib S. Hassan & Konrad Meisner & Kevin Krause & Levan Bzhalava & Petra Moog, 2024. "Is digitalization a source of innovation? Exploring the role of digital diffusion in SME innovation performance," Small Business Economics, Springer, vol. 62(4), pages 1469-1491, April.
    3. Robin Pesch & Ricarda B. Bouncken & Sascha Kraus, 2015. "Effects of Communication Style and Age Diversity in Innovation Teams," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 12(06), pages 1-20, December.
    4. Šarlija, Nataša & Bilandžić, Ana, 2018. "Does Innovation Matter for SMEs' growth in Croatia?," 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disruptive Change (Dubrovnik, 2018), in: 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disrupt, pages 356-375, Governance Research and Development Centre (CIRU), Zagreb.

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