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Perceived Competition And Innovative Intentions In Dutch Small And Medium-Sized Enterprises

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

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  • Jeroen P. J. De Jong

Abstract

This paper explores the complex relationship between competition and innovation by analyzing survey data of 2,281 small and medium-sized enterprises (SMEs) in the Netherlands. We develop and test hypotheses on the relationships between three dimensions of perceived competition (internal rivalry, supplier power and buyer power) and firms’ intentions to engage in product and process innovation. Moreover, we analyze if firms’ strategic attention for innovation is a moderating variable. We find that specific innovative intentions relate to different perceptions of competitive forces. Intentions to engage in process innovation correlate with the perceived bargaining power of suppliers, while intended product innovation correlates with perceived buyer power and internal rivalry between incumbent firms in the market — but the correlation with internal rivalry is significant only when firms report no strategic attention for innovation.

Suggested Citation

  • Jeroen P. J. De Jong, 2017. "Perceived Competition And Innovative Intentions In Dutch Small And Medium-Sized Enterprises," World Scientific Book Chapters, in: Joe Tidd (ed.), Promoting Innovation in New Ventures and Small- and Medium-Sized Enterprises, chapter 6, pages 127-149, World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9781786343482_0006
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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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