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Competitiveness of small and medium sized enterprises: towards a two dimensional model of innovation and business clusters

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  • Panagiotis Piperopoulos
  • Richard Scase

Abstract

There is a well-established literature on innovation, entrepreneurship and business clusters and how each of these concepts affects small and medium sized enterprises (SMEs) competitiveness and growth. There is also an impetus by government agencies around the globe to encourage the creation of business clusters as a means of improving competitive advantages of SMEs and promoting regional economic growth. This article explores the relation between innovation and business collaborations and how these affect competitiveness and growth of SMEs, in less developed regions of Europe, through an analysis of four SMEs in an industrial cluster. On the basis of this, it presents a hypothetical, descriptive two-dimensional model of innovation and business clusters. SMEs that develop strategic partnerships are more likely to innovate and grow, than those SMEs that adopt a more 'traditional' go-it-alone approach. The article concludes with a discussion of policy implications of these findings for generating economic growth in less developed regions of Europe.

Suggested Citation

  • Panagiotis Piperopoulos & Richard Scase, 2009. "Competitiveness of small and medium sized enterprises: towards a two dimensional model of innovation and business clusters," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 3(5), pages 479-499.
    • Handle: RePEc:ids:ijbire:v:3:y:2009:i:5:p:479-499
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    Citations

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    Cited by:

    1. Rubio-Andrés, Mercedes & Ramos-González, Mª del Mar & Sastre-Castillo, Miguel Ángel & Gutiérrez-Broncano, Santiago, 2023. "Stakeholder pressure and innovation capacity of SMEs in the COVID-19 pandemic: Mediating and multigroup analysis," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    2. Matveeva, L. G. & Chernova, O. A., 2017. "Increasing territorial capitalization by incorporation of small enterprises into clusters," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 3(2), pages 103-111.
    3. Mercedes Rubio-Andrés & Mª Ramos-González & Miguel Ángel Sastre-Castillo, 2022. "Driving innovation management to create shared value and sustainable growth," Review of Managerial Science, Springer, vol. 16(7), pages 2181-2211, October.
    4. María del Mar Ramos-González & Mercedes Rubio-Andrés & Miguel Ángel Sastre-Castillo, 2022. "Effects of socially responsible human resource management (SR-HRM) on innovation and reputation in entrepreneurial SMEs," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1205-1233, September.
    5. M. D. Rozaida* & Mahanum Daim, 2018. "The Role of Process Innovation between Organizational Capability and Software Project Success in Malaysian Public Sector," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 112-124:4.
    6. Huwei Wen & Yutong Liu & Fengxiu Zhou, 2023. "Promoting the International Competitiveness of Small and Medium-Sized Enterprises Through Cross-Border E-Commerce Development," SAGE Open, , vol. 13(4), pages 21582440231, November.

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