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The relationship between types of innovation and SMEs’ performance: a multi-dimensional empirical assessment

Author

Listed:
  • Alfonso Expósito

    () (Universidad de Sevilla)

  • Juan A. Sanchis-Llopis

    (Universidad de Valencia and ERICES)

Abstract

Abstract This paper examines the impact of different types of innovation on the business performance of small and medium-sized enterprises (SMEs) using a multi-dimensional analytical approach. Based on a wide sample of Spanish SMEs, our results highlight the existence of positive impacts of innovation on financial and operational dimensions of business performance, and the significant differences in these impacts depending on the type of innovation and the performance indicator considered. Our findings are relevant for managers and innovation decision-makers when designing innovation strategies to foster the business performance of SMEs. Additionally, the multi-faceted nature of the link between innovation and business outcomes in SMEs reveals that making the right innovation decision is crucial in securing the desired performance outcomes in a context of limited resources for innovation.

Suggested Citation

  • Alfonso Expósito & Juan A. Sanchis-Llopis, 2019. "The relationship between types of innovation and SMEs’ performance: a multi-dimensional empirical assessment," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(2), pages 115-135, June.
  • Handle: RePEc:spr:eurasi:v:9:y:2019:i:2:d:10.1007_s40821-018-00116-3
    DOI: 10.1007/s40821-018-00116-3
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    Keywords

    Innovation; Business performance; Multi-dimensional analysis; SMEs;

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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