IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v35y1989i5p597-606.html
   My bibliography  Save this article

Innovative and Noninnovative Small Firms: Types and Characteristics

Author

Listed:
  • Arshad M. Khan

    (Industrial Engineering, University of Texas, Arlington, Texas 76019)

  • V. Manopichetwattana

    (C P Corporation, Bangkok, Thailand)

Abstract

This study addresses the proposition that the characteristics of innovative and noninnovative small firms have significant differences. It is based on a sample of 50 Texas manufacturers. Cluster analysis yielded five distinct groups---two innovative and three noninnovative. The two innovative groups were either young firms dubbed the "Young Turks," or, established, managerially competent firms headed by newcomers called the "Blue Chips." Among the three noninnovative groups, the "Silver Spoons" appeared to be surviving on past success; the "Striving Stoics" displayed continuing managerial effort but were led by executives who had been at the helm far longer than average; and the "Kismets" showed lesser competence and effort, were highly centralized, and were headed by executives tending more towards an external locus of control. Correlational analysis indicated a significant positive relationship between scanning and innovation. Challenges to the firm in the form of environmental dynamism and heterogeneity evoked positive innovatory responses but environmental hostility was a weak negative correlate inducing the firm to "pull in its horns." Finally, an abundance of resources encouraged proactiveness.

Suggested Citation

  • Arshad M. Khan & V. Manopichetwattana, 1989. "Innovative and Noninnovative Small Firms: Types and Characteristics," Management Science, INFORMS, vol. 35(5), pages 597-606, May.
  • Handle: RePEc:inm:ormnsc:v:35:y:1989:i:5:p:597-606
    DOI: 10.1287/mnsc.35.5.597
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.35.5.597
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:35:y:1989:i:5:p:597-606. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Matthew Walls). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.