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Performance measurement approach for innovation capability in SMEs

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  • Minna Saunila

Abstract

Purpose - – The purpose of this paper is to present a framework for improving innovation capability through performance measurement in small- and medium-sized enterprises (SMEs). The development of an organisation’s innovation capability is considered increasingly important in the current literature. Developing such capability is essential, as innovation plays a key role in the survival and growth of organisations. A review of current literature highlights the need for a framework on the development of innovation capability, especially in SMEs. Design/methodology/approach - – A literature review was used to form an understanding of previous work in the research area. Previous literature was used to define the key concepts and further to build the conceptual framework. Findings - – As a result of the study, a framework for improving innovation capability through performance measurement in SMEs is presented. Key issues that must be addressed are highlighted and discussed. Practical/implications - – The paper contains suggestions for improving innovation capability through performance measurement. Using the results of this study, practitioners can enhance their innovation capability by measurement and by taking better account of different situations regarding the development of innovation capability. The framework clarifies the issue of how innovation capability and its determinants can be managed through measurement, and therefore it assists especially SMEs in their attempts to cope with the increasing need for innovation as an asset of their business performance. Originality/value - – There are very few examples in the current literature of frameworks for the issue, especially for SMEs. The role of performance measurement in developing innovation capability is also ignored in the current literature. The paper is relevant for academics, as it clarifies the existing body of knowledge and provides a platform for future research.

Suggested Citation

  • Minna Saunila, 2016. "Performance measurement approach for innovation capability in SMEs," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 65(2), pages 162-176, February.
    • Handle: RePEc:eme:ijppmp:v:65:y:2016:i:2:p:162-176
    DOI: 10.1108/IJPPM-08-2014-0123
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    Citations

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    Cited by:

    1. Handyanto Widjojo & Avanti Fontana & Gita Gayatri & Agus W. Soehadi, 2019. "Value Co-Creation For Marketing Innovation: Comparative Study In The Sme Community," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(03), pages 1-31, May.
    2. Aksoy, Hasan, 2017. "How do innovation culture, marketing innovation and product innovation affect the market performance of small and medium-sized enterprises (SMEs)?," Technology in Society, Elsevier, vol. 51(C), pages 133-141.
    3. Mai, Nhat Chi, 2021. "Determinants of successful adoption of the Balanced Scorecard in Vietnamese small and medium-sized enterprises," OSF Preprints 5hx2r, Center for Open Science.
    4. Erkut Altındağ & Hande Bilaloğlu Aktürk, 2020. "The Impact of New Generation Management Approaches on the Firm Performance: The Moderating Role of Strategic Human Resource Management Applications," SAGE Open, , vol. 10(3), pages 21582440209, September.
    5. Syamsari Syamsari & Muhammad Ramaditya & Irma Andriani & Ayu Puspitasari, 2022. "Selecting Priority Policy Strategies for Sustainability of Micro, Small, and Medium Enterprises in Takalar Regency," Sustainability, MDPI, vol. 14(23), pages 1-12, November.
    6. Cristiane Drebes Pedron & Winnie Ng Picoto & Miguel Colaco & Cintia Cristina Araújo, 2018. "CRM System: the Role of Dynamic Capabilities in creating Innovation Capability," Brazilian Business Review, Fucape Business School, vol. 15(5), pages 494-511, September.
    7. Sylvia Novillo-Villegas & Patricia Acosta-Vargas & Christian Cruz-Boada & Mateo Garzon & Andre Marin-Dett & Wendy Anzules-Falcones, 2022. "Sustaining the Path for Innovation Capability from a Developing Country Perspective: A Conceptual Framework," Sustainability, MDPI, vol. 14(19), pages 1-26, October.
    8. Marlenne G. Velazquez-Cazares & Anna M. Gil-Lafuente & Ernesto Leon-Castro & Fabio Blanco-Mesa, 2021. "Innovation capabilities measurement using fuzzy methodologies: a Colombian SMEs case," Computational and Mathematical Organization Theory, Springer, vol. 27(4), pages 384-413, December.
    9. Inków Monika, 2020. "Organizational innovation capability as a result of knowledge management processes - a literature review," Management, Sciendo, vol. 24(1), pages 143-156, June.
    10. Pirozzi Maria Grazia & Agliata Francesco & Tuccillo Danilo & Pirozzi Francesco, 2021. "Defining the Integrated Performance Measurement Systems in Small and Medium Enterprises: An Advanced Model," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(12), pages 203-203, July.
    11. Hannu Littunen & Timo Tohmo & Esa Storhammar, 2021. "Innovation among SMEs in Finland: The impact of stakeholder engagement and firm-level characteristics," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 17(4), pages 157-196.
    12. 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.
    13. Mulaa, Josephine K. & Kilika, James M. & Namusonge, Mary J. & Institute of Research, Asian, 2021. "Conceptualizing Strategic Innovation in a Firm Context: A Theoretical Review and Research Agenda," OSF Preprints 8ckts, Center for Open Science.
    14. Jana Hornungová & Kateřina Petrová & František Milichovský, 2020. "Modeling Cause and Effect Relationships of Strategy Map Using Economic and Social Performance Factors in the Organizational Culture," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(3), pages 613-624.
    15. Wendy Anzules-Falcones & Sylvia Novillo-Villegas, 2023. "Innovation Capacity, Entrepreneurial Orientation, and Flexibility: An Analysis from Industrial SMEs in Ecuador," Sustainability, MDPI, vol. 15(13), pages 1-24, June.
    16. Ju Han Yeon & Seung-hwan Jang, 2023. "The Relation between Bio-Industry Performance and Innovation Capacity—Focusing on the Korean Bio-Industry," Sustainability, MDPI, vol. 15(9), pages 1-17, April.
    17. Isaac Mabhungu & Breggie Van Der Poll, 2017. "A Review of Critical Success Factors Which Drives the Performance of Micro, Small and Medium Enterprises," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(6), pages 151-151, May.

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