2014
DOI: 10.1002/kpm.1442
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Does Innovation Capability Really Matter for the Profitability of SMEs?

Abstract: The study examines the relationship between innovation capability and firm profitability. The study has been executed by conducting a web‐based survey in Finnish small‐sized and medium‐sized enterprises (SMEs). Previous research has studied the effect of innovativeness on performance. This study went thus a one step further by providing a comprehensive description of the effects of the determinants of innovation capability on profitability of SMEs. According to the results, there is only a minor effect of the … Show more

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Cited by 37 publications
(43 citation statements)
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“…This research believes innovation capability is a great ability to provide innovative services and products continuously through the organizational capabilities, capacities and competencies. This definition is utilized by some other researches (Saunila et al, 2014;Saunila & Ukko, 2012;Sáenz et al, 2009;Lawson & Samson, 2001). Innovation capability completes as the result of several relationships and communication among organizational, resources, qualifications, and connections with other organizations (Hii & Neely, 2000) so the innovation capability increases the competitive advantage of the firms (Tidd et al, 2005).…”
Section: Innovation Capabilitymentioning
confidence: 99%
See 1 more Smart Citation
“…This research believes innovation capability is a great ability to provide innovative services and products continuously through the organizational capabilities, capacities and competencies. This definition is utilized by some other researches (Saunila et al, 2014;Saunila & Ukko, 2012;Sáenz et al, 2009;Lawson & Samson, 2001). Innovation capability completes as the result of several relationships and communication among organizational, resources, qualifications, and connections with other organizations (Hii & Neely, 2000) so the innovation capability increases the competitive advantage of the firms (Tidd et al, 2005).…”
Section: Innovation Capabilitymentioning
confidence: 99%
“…Also, many theorists have focused on the need to identify organizational capabilities and resources or strengths in relation to external opportunities and threats according to inside-out view of resource based approach in the firms (Bryson et al, 2007). So, capability translates to dynamic capability for Interaction of internal resources of organization with environmental opportunities (Teece et al, 1997(Teece et al, -2009 and the innovation capability is one of most important dynamic capabilities that orientates the organization to adapting with environmental opportunities (Saunila et al, 2014). The innovation capability can be either a new product, a new service, a new technology, or a new administrative practice (Hage, 1999).…”
Section: Introductionmentioning
confidence: 99%
“…Organization must be able to develop the creative competency in order to have sustainable innovation capability. Different types of competitive advantage require different determinants when building innovation capability [9]. Thus, innovation capability varies from firm to firm and is determined by multiple factors [10].…”
Section: Introductionmentioning
confidence: 99%
“…Thus, external knowledge can be quite difficult to obtain. Even when exposed to external knowledge, absorbing it can be problematic for some organizations (Saunila et al, 2014). One issue is the reliance on historically evolved but obsolete knowledge by organizations.…”
Section: Introductionmentioning
confidence: 99%