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Perceived Environmental Uncertainty and Innovation in Small Firms

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  • Mark Freel

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    Abstract

    Employing data, from a recent survey of Scottish and Northern English Small- and Medium-sized Enterprises (SMEs), the current paper provides new evidence of the extent to which perceptions of environmental uncertainty (dynamism, complexity and hostility), along a number of dimensions, discriminate between small firms engaged in various levels of product innovation. Drawing, broadly, upon an extended version of the classic Miles and Snow schema, novel innovators appear to be marked by perceptions of uncertainty in market and technological environments, but by perceptions of a relatively certain or benign competitive environment. Moreover, the paper observes some dissimilarities between manufacturing and service firms. For instance, higher levels of innovation in manufacturing firms are associated with higher perceptions of supplier uncertainty, whilst, higher levels of innovation in service firms are associated with higher perceptions of human resource uncertainty. Copyright Springer 2005

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    File URL: http://hdl.handle.net/10.1007/s11187-005-4257-9
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    Bibliographic Info

    Article provided by Springer in its journal Small Business Economics.

    Volume (Year): 25 (2005)
    Issue (Month): 1 (08)
    Pages: 49-64

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    Handle: RePEc:kap:sbusec:v:25:y:2005:i:1:p:49-64

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    Web page: http://www.springerlink.com/link.asp?id=100338

    Related research

    Keywords: environmental uncertainty; innovation; small firms; D81; L21; O32; M13;

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    References

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    1. Oerlemans, L. A.G. & Buys, A.J. & Pretorius, M.W., 2001. "Research Design for the South African Innovation Survey 2001," Eindhoven Center for Innovation Studies (ECIS) working paper series 01.02, Eindhoven Center for Innovation Studies (ECIS).
    2. Oerlemans, L. A.G. & Buys, A.J. & Pretorius, M.W., 2001. "Research Design for the South African Innovation Survey 2001," Working Papers 01.02, Eindhoven Center for Innovation Studies.
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    Cited by:
    1. Lorraine Uhlaner & André Stel & Valérie Duplat & Haibo Zhou, 2013. "Disentangling the effects of organizational capabilities, innovation and firm size on SME sales growth," Small Business Economics, Springer, vol. 41(3), pages 581-607, October.
    2. André van Stel & Lorraine Uhlaner & Haibo Zhou & Valerie Duplat, 2012. "Disentangling the effects of organizational capabilities, innovation and firm size on SME sales growth," Scales Research Reports H201211, EIM Business and Policy Research.
    3. González-Benito, Javier & Reis da Rocha, Duilio & Queiruga, Dolores, 2010. "The environment as a determining factor of purchasing and supply strategy: An empirical analysis of Brazilian firms," International Journal of Production Economics, Elsevier, vol. 124(1), pages 1-10, March.
    4. Patrick Kreiser & Louis Marino & Donald Kuratko & K. Weaver, 2013. "Disaggregating entrepreneurial orientation: the non-linear impact of innovativeness, proactiveness and risk-taking on SME performance," Small Business Economics, Springer, vol. 40(2), pages 273-291, February.

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