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On why some firms are more innovative than others: a firm-level study of heterogeneity in innovation performance

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  • Hnn-Hui Hii

Abstract

In this paper, a study into innovative capacities of SMEs in the UK is reported. The ability of a firm to develop successful innovations is a function of their innovative capacities. The resource-based perspective suggests that performance advantage accrues to firms with imitable resources and capabilities. This paper suggests a framework for managing capacity building for innovation. The model discussed herein explains heterogeneity in innovation performance. Four major dimensions of capacity to innovate are discussed: culture, resources, competence, and networking. A firm's innovation performance is related to the ability of its management to nurture innovative capacity.

Suggested Citation

  • Hnn-Hui Hii, 2004. "On why some firms are more innovative than others: a firm-level study of heterogeneity in innovation performance," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 4(2/3), pages 159-177.
    • Handle: RePEc:ids:ijeima:v:4:y:2004:i:2/3:p:159-177
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