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Innovation Types and Sales Growth in Small Firms: Evidence from Kosovo

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  • Mahmutaj Lura Rexhepi

    (PhD, Teaching Assistant, Faculty of Economics, Department of Management and Informatics, University of Prishtina “Hasan Prishtina”)

  • Krasniqi Besnik

    (PhD, Associate Professor, Faculty of Economics, Department of Management and Informatics, University of Prishtina “Hasan Prishtina”)

Abstract

The purpose of this paper is to investigate the impact of different forms of innovation on firm growth, in terms of sales. A total of 278 samples were collected from SMEs in the manufacturing, service and trade industries throughout Kosovo. The data were analysed using a logistic regression analysis. The findings confirm the hypotheses that marketing innovation is positively associated with firm growth, while new to the firm products is negatively associated with firm growth. Other innovation attributes have resulted with non-significance value. The findings in this study can be useful for theoretical discussion, as well as for policy formulation related to introduction of innovation and SMEs development considering that innovation is critical factor in today’s market and competition. Further studies should look into how SMEs could investigate over time from the initial stage to the full development of innovation.

Suggested Citation

  • Mahmutaj Lura Rexhepi & Krasniqi Besnik, 2020. "Innovation Types and Sales Growth in Small Firms: Evidence from Kosovo," South East European Journal of Economics and Business, Sciendo, vol. 15(1), pages 27-43, June.
    • Handle: RePEc:vrs:seejeb:v:15:y:2020:i:1:p:27-43:n:3
    DOI: 10.2478/jeb-2020-0003
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    References listed on IDEAS

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    2. Alfonso Expósito & Amparo Sanchis-Llopis & Juan A. Sanchis-Llopis, 2023. "CEO gender and SMEs innovativeness: evidence for Spanish businesses," International Entrepreneurship and Management Journal, Springer, vol. 19(3), pages 1017-1054, September.
    3. Shaqir Elezaj & Vehbi Ramaj & Ramë Elezaj, 2023. "The Role of Innovation and Branding on Enterprise Sales Growth in Transition Countries," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 12, May.
    4. Isnurhadi & Sulastri & Yulia Saftiana & Ferry Jie, 2022. "Banking Industry Sustainable Growth Rate under Risk: Empirical Study of the Banking Industry in ASEAN Countries," Sustainability, MDPI, vol. 15(1), pages 1-21, December.
    5. Potts Mark D & Affholter Joseph A & Harless Sydney, 2021. "Entrepreneurship Factors Among Developed Countries and Emerging Regions," South East European Journal of Economics and Business, Sciendo, vol. 16(2), pages 82-100, December.
    6. Karbowski Adam & Prokop Jacek, 2020. "The Impact of Patents and R&D Cooperation on R&D Investments in a Differentiated Goods Industry," South East European Journal of Economics and Business, Sciendo, vol. 15(1), pages 122-133, June.
    7. Vehbi Ramaj & Anita Cucovic & Gezim Jusufi, 2022. "Innovation as a Success Key for Manufacturing SMEs: Empirical Insights from Kosovo," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 113-127.
    8. Gezim Jusufi & Donat Rexha & Besime Ziberi, 2024. "Innovations and Entreprises Performance in Transition Countries, with Special Emphasis on Kosovo: CDM Model Approach," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 77-91.

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    More about this item

    Keywords

    Small and Medium Enterprises; innovation; firm growth; Kosovo;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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