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INFLUENCE OF THE BUSINESS ENVIRONMENT IN THE DYNAMICS OF INNOVATION AND IN THE PERFORMANCE OF SMEs

Author

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  • DOMINGO GARCÍA PÉREZ-DE-LEMA

    (Accounting and Finance Department, Universidad Politécnica de Cartagena (UPCT), Murcia, Spain)

  • PETER BENT HANSEN

    (Escola de Administraçao, Universidade Federal do Rio Grande do Sul, Porto Alegre, Brazil)

  • ANTONIA MADRID-GUJJARRO

    (Accounting and Finance Department, Universidad Politécnica de Cartagena (UPCT), Murcia, Spain)

  • JANE LUCIA SILVA-SANTOS

    (PUCRS’ Science and Technology Park, Pontifical Catholic University of Rio Grande do Sul (PUCRS), Porto Alegre, Brazil)

Abstract

The main aim of this paper is to study the influence of the business environment on innovation strategy, innovative activity and performance in the SMEs. Business environment has been considered, taking into account its dynamism and its hostility. An empirical study is carried out on a sample composed by 302 Spanish firms. Results show that SMEs react in hostile and dynamic business environment by means of strengthening their innovation strategy. Innovation strategy allows firms to carry out higher levels of product and process innovations, which turn out into a positive effect on performance. Results offer important implications for SMEs, as such the relevance to reinforce the importance of developing an innovation strategy in the framework of their formal strategic planning.

Suggested Citation

  • Domingo García Pérez-De-Lema & Peter Bent Hansen & Antonia Madrid-Gujjarro & Jane Lucia Silva-Santos, 2019. "INFLUENCE OF THE BUSINESS ENVIRONMENT IN THE DYNAMICS OF INNOVATION AND IN THE PERFORMANCE OF SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-25, June.
    • Handle: RePEc:wsi:ijimxx:v:23:y:2019:i:05:n:s1363919619500440
    DOI: 10.1142/S1363919619500440
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