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External vs Internal Determinants of Firm Technology Strategy:Evidence from the Polish Services Sector

  • Krzysztof Szczygielski
  • Wojciech Grabowski
  • Richard Woodward

Differences in the growth of firms remain a major topic in economics and strategy research.In this paper we investigated the link between innovation performance and employment growth. First we discuss the problem from the theoretical point of view and then we analyze the relationship between innovation performance and the dynamics of employment in the Polish service firms in 2004-2009. Firms that introduced new services or marketing techniques experienced stronger growth. Process innovations contributed to employment reduction. Tellingly, this effect could only be observed in 2008-2009, a subperiod which saw the lowest levels of aggregate demand. This conclusion yields support to the presumption formulated by Pianta (2005) that the impact of innovation on employment growth depends on the macroeconomic situation.

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Paper provided by CASE-Center for Social and Economic Research in its series CASE Network Studies and Analyses with number 0454.

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Length: 38
Date of creation: Jun 2013
Date of revision:
Handle: RePEc:sec:cnstan:0454
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  1. Jan Fagerberg & Martin Srholec & Bart Verspagen, 2009. "Innovation and Economic Development," Working Papers on Innovation Studies 20090723, Centre for Technology, Innovation and Culture, University of Oslo, revised Oct 2009.
  2. Koson Sapprasert & Tommy Høyvarde Clausen, 2012. "Organizational innovation and its effects," Industrial and Corporate Change, Oxford University Press, vol. 21(5), pages 1283-1305, October.
  3. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
  4. Patel, Pari & Vega, Modesto, 1999. "Patterns of internationalisation of corporate technology: location vs. home country advantages1," Research Policy, Elsevier, vol. 28(2-3), pages 145-155, March.
  5. Castellacci, Fulvio, 2008. "Technological paradigms, regimes and trajectories: Manufacturing and service industries in a new taxonomy of sectoral patterns of innovation," Research Policy, Elsevier, vol. 37(6-7), pages 978-994, July.
  6. Tommy Clausen & Mikko Pohjola & Koson Sapprasert & Bart Verspagen, 2012. "Innovation strategies as a source of persistent innovation," Industrial and Corporate Change, Oxford University Press, vol. 21(3), pages 553-585, June.
  7. John C. Haltiwanger & Ron S. Jarmin & Javier Miranda, 2010. "Who Creates Jobs? Small vs. Large vs. Young," NBER Working Papers 16300, National Bureau of Economic Research, Inc.
  8. Subodh, Kandamuthan, 2002. "Market Concentration, Firm Size and Innovative Activity: A Firm-level Economic Analysis of Selected Indian Industries under Economic Liberalization," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  9. Auh, Seigyoung & Menguc, Bulent, 2005. "Balancing exploration and exploitation: The moderating role of competitive intensity," Journal of Business Research, Elsevier, vol. 58(12), pages 1652-1661, December.
  10. Zahra, Shaker A., 1996. "Technology strategy and financial performance: Examining the moderating role of the firm's competitive environment," Journal of Business Venturing, Elsevier, vol. 11(3), pages 189-219, May.
  11. Wojciech Grabowski & Krzysztof Szczygielski, 2012. "Innovation Strategies and Productivity in the Polish Services Sector in the light of CIS 2008," CASE Network Studies and Analyses 0448, CASE-Center for Social and Economic Research.
  12. Burgelman, Robert A., 2002. "Strategy as Vector and the Inertia of Co-evolutionary Lock-in," Research Papers 1745, Stanford University, Graduate School of Business.
  13. Krzysztof Szczygielski, 2011. "What are service sector innovations and how do we measure them?," CASE Network Studies and Analyses 422, CASE-Center for Social and Economic Research.
  14. Ireland, R. Duane & Webb, Justin W., 2009. "Crossing the great divide of strategic entrepreneurship: Transitioning between exploration and exploitation," Business Horizons, Elsevier, vol. 52(5), pages 469-479, September.
  15. Martin Srholec & Bart Verspagen, 2012. "The Voyage of the Beagle into innovation: explorations on heterogeneity, selection, and sectors," Industrial and Corporate Change, Oxford University Press, vol. 21(5), pages 1221-1253, October.
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