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

In: Promoting Innovation in New Ventures and Small- and Medium-Sized Enterprises

Author

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  • Ana Cristina O. Siqueira
  • Andy D. Cosh

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, 2017. "Effects Of Product Innovation And Organisational Capabilities On Competitive Advantage: Evidence From Uk Small And Medium Manufacturing Enterprises," World Scientific Book Chapters, in: Joe Tidd (ed.), Promoting Innovation in New Ventures and Small- and Medium-Sized Enterprises, chapter 3, pages 51-77, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9781786343482_0003
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    More about this item

    Keywords

    Innovation; Enterprise; SMEs; Small and Medium-Sized Enterprises; SMBs; Small and Medium-Sized Businesses;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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