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Determinants of Innovation Activities in Small Enterprises: A Model Approach

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  • Dorota Grego-Planer
  • Agnieszka Kus

Abstract

Purpose: The article aims to develop a model explaining the undertaking of Polish small enterprises' innovation activities. Design/Methodology/Approach: There are many classifications of the factors that stimulate or inhibit small enterprises' innovation activity. Generally, they are considered in two domains – as external and internal determinants. Empirical studies were conducted in 2015 on a representative sample of 202 Polish small enterprises using the CAPI method. Analysis of the significance of the impact of key internal and external factors on small enterprises' innovation activity was based on a logit regression model. Findings: The results indicate the significance of seven of the 25 key factors included in the model. These statistically significant determinants of Polish small enterprises' innovation activity exhibited both positive and negative impacts on undertaking innovative undertakings. Practical Implications: The identified determinants of innovation activity may guide managers of such companies. The presented model shows which factors stimulate the process of implementing innovations and which inhibit it. Originality/value: The research identifies the external and internal determinants of innovation activity in Polish small companies. These results can be compared with results in other countries, where the conditions for conducting innovation activities are often completely different.

Suggested Citation

  • Dorota Grego-Planer & Agnieszka Kus, 2020. "Determinants of Innovation Activities in Small Enterprises: A Model Approach," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 137-148.
    • Handle: RePEc:ers:journl:v:xxiii:y:2020:i:special1:p:137-148
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    References listed on IDEAS

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    1. Karel HavlÃ­Ä ek & Eleftherios Thalassinos & Liliana Berezkinova, 2013. "Innovation Management and Controlling in SMEs," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 57-70.
    2. Romijn, Henny & Albaladejo, Manuel, 2002. "Determinants of innovation capability in small electronics and software firms in southeast England," Research Policy, Elsevier, vol. 31(7), pages 1053-1067, September.
    3. Maciej Zastempowski & Waldemar Glabiszewski & Krzysztof Krukowski & Szymon Cyfert, 2020. "Technological Innovation Capabilities of Small and Medium-Sized Enterprises," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 460-474.
    4. repec:ers:journl:v:xvi:y:2013:i:sisme:p:57-70 is not listed on IDEAS
    5. Romero, Isidoro & Martínez-Román, Juan A., 2012. "Self-employment and innovation. Exploring the determinants of innovative behavior in small businesses," Research Policy, Elsevier, vol. 41(1), pages 178-189.
    6. Rosa M. Mariz-Pérez & M.Mercedes Teijeiro-Alvarez & M.Teresa García-Alvarez, 2012. "The relevance of human capital as a driver for innovation," Cuadernos de Economía - Spanish Journal of Economics and Finance, Asociación Cuadernos de Economía, vol. 35(98), pages 68-76, Agosto.
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    Cited by:

    1. Agnieszka Kuś & Dorota Grego-Planer, 2021. "A Model of Innovation Activity in Small Enterprises in the Context of Selected Financial Factors: The Example of the Renewable Energy Sector," Energies, MDPI, vol. 14(10), pages 1-17, May.
    2. Adisu Fanta Bate & Esther Wanjiru Wachira & Sándor Danka, 2023. "The determinants of innovation performance: an income-based cross-country comparative analysis using the Global Innovation Index (GII)," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-27, December.
    3. Kamila Urbanska & Agnieszka Parkitna & Joanna Kubicka, 2021. "Success of SMEs in the Era of Pandemics," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 407-423.
    4. Daniel López & Miquel Oliver, 2023. "Integrating Innovation into Business Strategy: Perspectives from Innovation Managers," Sustainability, MDPI, vol. 15(8), pages 1-28, April.
    5. Umut Akdugan & Nilhun Dogan, 2022. "Factors Affecting Innovation in OECD Countries," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 0(36), pages 111-136, June.

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    More about this item

    Keywords

    Innovation; determinants of innovation; small business.;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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