Management characteristics, collaboration and innovative efficiency: evidence from UK survey data
This paper explores the impact of management characteristics and patterns of collaboration on a firmÕs innovation performance in transforming innovation resources into commercially successful outputs. These questions are investigated using a recent firm level survey database for 465 innovative British small and medium enterprises (SMEs) over the years 1998-2001. Both Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) are employed to benchmark a firmÕs innovative efficiency against best practice. Quality and the variety of innovations are taken into account by combining Principal Component Analysis (PCA) with DEA. We find evidence suggesting that the innovative efficiency of SMEs is significantly affected by their management characteristics and collaboration behaviour. Collaboration, organisational flexibility, formality in management systems and incentive schemes are found to contribute significantly to a firmÕs innovative efficiency. Managerial share-ownership also shows some positive effect. The importance of these effects, however, varies across different sectors. WE find that innovative efficiency in high-tech SMEs is significantly enhanced by collaboration, formal management structure and training; and that in medium- and low-tech SMEs is significantly associated with managerial ownership, incentive schemes and organisational flexibility.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jacques Mairesse & Bronwyn H. Hall, 1996. "Estimating the Productivity of Research and Development: An Exploration of GMM Methods Using Data on French & United States Manufacturing Firms," NBER Working Papers 5501, National Bureau of Economic Research, Inc.
- Segerstrom, Paul S, 1991.
"Innovation, Imitation, and Economic Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 99(4), pages 807-827, August.
- Segerstrom, P.S., 1990. "Innovation, Imitation And Economic Growth," Papers 8818, Michigan State - Econometrics and Economic Theory.
- Siegel, Donald S. & Westhead, Paul & Wright, Mike, 2003. "Assessing the impact of university science parks on research productivity: exploratory firm-level evidence from the United Kingdom," International Journal of Industrial Organization, Elsevier, vol. 21(9), pages 1357-1369, November.
- Andy Cosh & Alan Hughes & Melvyn Weeks, 2000. "The Relationship Between Training and Employment Growth in Small and Medium-Sized Enterprises," Working Papers wp188, Centre for Business Research, University of Cambridge.
- Symeonidis, George, 2001. "Price Competition, Innovation and Profitability: Theory and UK Evidence," Economics Discussion Papers 3694, University of Essex, Department of Economics.
- Symeonidis, George, 2001. "Price Competition, Innovation and Profitability: Theory and UK Evidence," CEPR Discussion Papers 2816, C.E.P.R. Discussion Papers.
- Galende, Jesus & de la Fuente, Juan Manuel, 2003. "Internal factors determining a firm's innovative behaviour," Research Policy, Elsevier, vol. 32(5), pages 715-736, May.
- Stephen Roper, 2001. "Benchmarking Regional Innovation: A Comparison of Bavaria, Northern Ireland and the Republic of Ireland," ERSA conference papers ersa01p39, European Regional Science Association.
- Keld Laursen & Nicolai J. Foss, 2003. "New human resource management practices, complementarities and the impact on innovation performance," Cambridge Journal of Economics, Oxford University Press, vol. 27(2), pages 243-263, March.
- Xiaolan Fu & V. N. Balasubramanyam, 2003. "Township and Village Enterprises in China," Journal of Development Studies, Taylor & Francis Journals, vol. 39(4), pages 27-46.
- V N Balasubramanyam & X Fu, 2002. "Township and village enterprises in China," Working Papers 539923, Lancaster University Management School, Economics Department.
- Bronwyn H. Hall & Albert N. Link & John T. Scott, 2003. "Universities as Research Partners," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 485-491, May.
- Hall, Browyn H. & Link, Albert N. & Scott, John T., 2000. "Universities as Research Partners," Department of Economics, Working Paper Series qt1np920r9, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Bronwyn H. Hall & Albert N. Link & John T. Scott, 2001. "Universities as Research Partners," Development and Comp Systems 0012001, EconWPA.
- Bronwyn H. Hall, Albert N. Link and John T. Scott., 2000. "Universities as Research Partners," Economics Working Papers E00-276, University of California at Berkeley.
- Hall, Bronwyn & Link, Albert & Scott, John, 2010. "Universities as Research Partners," Working Papers 10-9, University of North Carolina at Greensboro, Department of Economics.
- Bronwyn H. Hall & Albert N. Link & John T. Scott, 2000. "Universities as Research Partners," NBER Working Papers 7643, National Bureau of Economic Research, Inc.
- Leibenstein, Harvey, 1978. "On the Basic Proposition of X-Efficiency Theory," American Economic Review, American Economic Association, vol. 68(2), pages 328-332, May.
- Dirk Czarnitzki & Kornelius Kraft, 2004. "Firm Leadership and Innovative Performance: Evidence from Seven EU Countries," Small Business Economics, Springer, vol. 22(5), pages 325-332, 06.
- Kraft, Kornelius & Czarnitzki, Dirk, 2001. "Firm leadership and innovative performance: evidence from seven EU Countries," ZEW Discussion Papers 01-35, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- James Tobin, 1956. "Estimation of Relationships for Limited Dependent Variables," Cowles Foundation Discussion Papers 3R, Cowles Foundation for Research in Economics, Yale University.
- Geroski, P A, 1990. "Innovation, Technological Opportunity, and Market Structure," Oxford Economic Papers, Oxford University Press, vol. 42(3), pages 586-602, July.
- Danzon, Patricia M. & Nicholson, Sean & Pereira, Nuno Sousa, 2005. "Productivity in pharmaceutical-biotechnology R&D: the role of experience and alliances," Journal of Health Economics, Elsevier, vol. 24(2), pages 317-339, March.
- Patricia M. Danzon & Sean Nicholson & Nuno Sousa Pereira, 2003. "Productivity in Pharmaceutical Biotechnology R&D: The Role of Experience and Alliances," NBER Working Papers 9615, National Bureau of Economic Research, Inc.
- Alan Hughes, 2003. "Knowledge Transfer, Entrepreneurship and Economic Growth: Some Reflections and Implications for Policy in the Netherlands," Working Papers wp273, Centre for Business Research, University of Cambridge.
- Mark Rogers, 2004. "Networks, Firm Size and Innovation," Small Business Economics, Springer, vol. 22(2), pages 141-153, 03.
- Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
- C. H. Nam & C. B. Tatum, 1997. "Leaders and champions for construction innovation," Construction Management and Economics, Taylor & Francis Journals, vol. 15(3), pages 259-270.
- Michael R. Darby & Lynne G. Zucker & Andrew Wang, 2003. "Universities, Joint Ventures, and Success in the Advanced Technology Program," NBER Working Papers 9463, National Bureau of Economic Research, Inc.
- Kaoru Hosono & Masayo Tomiyama & Tsutomu Miyagawa, 2004. "Corporate governance and research and development: Evidence from Japan," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(2), pages 141-164.
- Danny Miller & Jean-Marie Toulouse, 1986. "Chief Executive Personality and Corporate Strategy and Structure in Small Firms," Management Science, INFORMS, vol. 32(11), pages 1389-1409, November.
- Jean O. Lanjouw & Mark Schankerman, 2004. "Patent Quality and Research Productivity: Measuring Innovation with Multiple Indicators," Economic Journal, Royal Economic Society, vol. 114(495), pages 441-465, 04.
- Furman, Jeffrey L. & Porter, Michael E. & Stern, Scott, 2002. "The determinants of national innovative capacity," Research Policy, Elsevier, vol. 31(6), pages 899-933, August.
- Negassi, S., 2004. "R&D co-operation and innovation a microeconometric study on French firms," Research Policy, Elsevier, vol. 33(3), pages 365-384, April.
- repec:esx:essedp:530 is not listed on IDEAS Full references (including those not matched with items on IDEAS)