IDEAS home Printed from https://ideas.repec.org/p/stc/stcp3e/1997102e.html
   My bibliography  Save this paper

Differences in Strategies and Performances of Different Types of Innovators

Author

Listed:
  • Johnson, Joanne
  • Baldwin, John R.

Abstract

The strategies and competencies of small and medium-sized firms are explored here using the responses to the Survey of Growing Small and Medium Size Enterprises, conducted by Statistics Canada. The paper classifies small and medium-sized firms by innovator type and explores the complementary strategies in management, marketing, human resources and financing that are adopted by each innovator type and the success of each type of innovator. A taxonomy of innovative types is developed that is based on the product/process development orientation of the firm. Differences in competencies in the area of human resources, management, marketing and finance that are possessed by firms in each group are examined. Firms are classified into one of four groups-product innovators, comprehensive (product and process) innovators, process innovators, or non-innovators-based on their responses to 22 innovation-related questions on the survey. These groups correspond to different stages in the development of a product market. Product innovators occupy the first stage, the time when the product is initially introduced. Comprehensive innovators represent the second stage, when the product demand is still growing, and firms in addition to producing new products, have begun to make dramatic improvements in their production efficiencies, by concentrating on process innovations as well as product innovations. Process innovators represent the third phase in the development of a product market, when the product characteristics have become established, and firms seek to improve their market share mainly by improving their production efficiencies. Finally, the last phase is characterized by a relatively stable product line, with a mature production technology. The competencies of firms differ across these innovative types. Comprehensive innovators tend to develop greater capabilities than the other innovators in a wide range of areas. Comprehensive innovators also tend to outperform the other innovators in terms of growth in sales, market share, and employment size. Innovators also tailor their financial strategies to their innovator type. Product innovators focus on a low debt/asset strategy with non-standard sources like venture capital. In later stages of the innovation life cycle-comprehensive and process innovators place great emphasis on higher debt/asset ratios and make greater use of long-term debt and equity capital.

Suggested Citation

  • Johnson, Joanne & Baldwin, John R., 1998. "Differences in Strategies and Performances of Different Types of Innovators," Analytical Studies Branch Research Paper Series 1997102e, Statistics Canada, Analytical Studies Branch.
    • Handle: RePEc:stc:stcp3e:1997102e
    as

    Download full text from publisher

    File URL: https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M1997102
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Baldwin, John R. & Johnson, Joanne, 1996. "Business strategies in more- and less-innovative firms in Canada," Research Policy, Elsevier, vol. 25(5), pages 785-804, August.
    2. Johnson, Joanne & Baldwin, John R., 1995. "Business Strategies in Innovative and Non-innovative Firms in Canada," Analytical Studies Branch Research Paper Series 1995073e, Statistics Canada, Analytical Studies Branch.
    3. Klepper, Steven, 1996. "Entry, Exit, Growth, and Innovation over the Product Life Cycle," American Economic Review, American Economic Association, vol. 86(3), pages 562-583, June.
    4. Baldwin,John R. & Gorecki,Paul With contributions by-Name:Caves,Richard E. With contributions by-Name:Dunne,Tim With contributions by-Name:Haltiwanger,John, 1998. "The Dynamics of Industrial Competition," Cambridge Books, Cambridge University Press, number 9780521633574, December.
      • Baldwin,John R. & Gorecki,Paul With contributions by-Name:Caves,Richard E. With contributions by-Name:Dunne,Tim With contributions by-Name:Haltiwanger,John, 1995. "The Dynamics of Industrial Competition," Cambridge Books, Cambridge University Press, number 9780521465618, December.
    5. Gort, Michael & Klepper, Steven, 1982. "Time Paths in the Diffusion of Product Innovations," Economic Journal, Royal Economic Society, vol. 92(367), pages 630-653, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paul Diederen & Hans van Meijl & Arjan Wolters, 2003. "Modernisation in agriculture: what makes a farmer adopt an innovation?," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 2(3/4), pages 328-342.
    2. Rouvinen, Petri, 1999. "Characteristics of Product and Process Innovators among Finnish Manufacturing Firms," Discussion Papers 690, The Research Institute of the Finnish Economy.
    3. Baldwin, John R. & Yates, Janice, 1999. "Innovation, Training and Success," Analytical Studies Branch Research Paper Series 1999137e, Statistics Canada, Analytical Studies Branch.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Baldwin, John R. & Yates, Janice, 1999. "Innovation, Training and Success," Analytical Studies Branch Research Paper Series 1999137e, Statistics Canada, Analytical Studies Branch.
    2. Johnson, Joanne & Baldwin, John R., 1998. "Differences dans les strategies et le rendement de divers types d'innovateurs," Direction des études analytiques : documents de recherche 1997102f, Statistics Canada, Direction des études analytiques.
    3. Baldwin, John R., 1999. "Un portrait des entrees et des sorties," Direction des études analytiques : documents de recherche 1999121f, Statistics Canada, Direction des études analytiques.
    4. Baldwin, John R., 1999. "A Portrait of Entrants and Exits," Analytical Studies Branch Research Paper Series 1999121e, Statistics Canada, Analytical Studies Branch.
    5. Baldwin, John R. & Diverty, Brent, 1995. "Advanced Technology Use in Canadian Manufacturing Establishments," Analytical Studies Branch Research Paper Series 1995085e, Statistics Canada, Analytical Studies Branch.
    6. Baldwin, John R., 2000. "Innovation and Training in New Firms," Analytical Studies Branch Research Paper Series 2000123e, Statistics Canada, Analytical Studies Branch.
    7. Gellatly, Guy & Baldwin, John R., 1998. "La haute technologie est-elle l'exclusivite des entreprises ou peut-elle s'appliquer a l'ensemble d'un secteur d'activite? Donnees recueillies aupres des nouvelles entreprises axees sur la technologie," Direction des études analytiques : documents de recherche 1998120f, Statistics Canada, Direction des études analytiques.
    8. Gaudreault, Valerie & Gellatly, Guy & Baldwin, John R., 2002. "Financing Innovation in New Small Firms: New Evidence from Canada," Analytical Studies Branch Research Paper Series 2002190e, Statistics Canada, Analytical Studies Branch.
    9. Sabourin, David & Baldwin, John R., 2001. "Impact of the Adoption of Advanced Information and Communication Technologies on Firm Performance in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 2001174e, Statistics Canada, Analytical Studies Branch.
    10. Rui Baptista & Murat Karaöz, 2011. "Turbulence in growing and declining industries," Small Business Economics, Springer, vol. 36(3), pages 249-270, April.
    11. Michele Cincera, 2004. "Impact of market entry and exit on EU productivity and growth performance," ULB Institutional Repository 2013/921, ULB -- Universite Libre de Bruxelles.
    12. Gellatly, Guy & Baldwin, John R., 1998. "Are There High-tech Industries or Only High-tech Firms? Evidence from New Technology-based Firms," Analytical Studies Branch Research Paper Series 1998120e, Statistics Canada, Analytical Studies Branch.
    13. Sabourin, David & Baldwin, John R., 2001. "Impact de l'adoption des technologies de l'information et des communications de pointe sur la performance des entreprises du secteur de la fabrication au Canada," Direction des études analytiques : documents de recherche 2001174f, Statistics Canada, Direction des études analytiques.
    14. Sabourin, David & Baldwin, John R. & Hanel, Peter, 2000. "Determinants of Innovative Activity in Canadian Manufacturing Firms: The Role of Intellectual Property Rights," Analytical Studies Branch Research Paper Series 2000122e, Statistics Canada, Analytical Studies Branch.
    15. Baldwin, John R. Sabourin, David, 2004. "The Effect of Changing Technology Use on Plant Performance in the Canadian Manufacturing Sector," Economic Analysis (EA) Research Paper Series 2004020e, Statistics Canada, Analytical Studies Branch.
    16. Diego Comin & Ramana Nanda, 2019. "Financial Development and Technology Diffusion," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 67(2), pages 395-419, June.
    17. Rajshree Agarwal & Barry L. Bayus, 2002. "The Market Evolution and Sales Takeoff of Product Innovations," Management Science, INFORMS, vol. 48(8), pages 1024-1041, August.
    18. Baldwin, John R. Gu, Wulong, 2004. "Innovation, Survival and Performance of Canadian Manufacturing Plants," Economic Analysis (EA) Research Paper Series 2004022e, Statistics Canada, Analytical Studies Branch.
    19. Javier Garcia-Sanchez & Luiz F. Mesquita & Roberto S. Vassolo, 2014. "What doesn't kill you makes you stronger: The evolution of competition and entry-order advantages in economically turbulent contexts," Strategic Management Journal, Wiley Blackwell, vol. 35(13), pages 1972-1992, December.
    20. Suma Athreye, 1999. "The Determinants of Firm Innovative Behaviour: The Roles of Rivalry and Persistence," Working Papers wp131, Centre for Business Research, University of Cambridge.

    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:stc:stcp3e:1997102e. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Brown (email available below). General contact details of provider: https://edirc.repec.org/data/stagvca.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.