Emergence of Product and Service Innovations of Different Level of Novelty in Knowledge Intensive SMEs: The Role of Open Innovation Patterns

Abstract

Purpose: The aim of the contribution is to evaluate the importance of domestic and foreign collaborative ties between knowledge-intensive SMEs and knowledge sources for the creation of product and service innovations which we differentiate according to the spatial level of novelty. Methodology/Approach: In order to test the validity of the hypotheses which were justified in the context of previous research we adopt an econometric approach and specifically, due to the nature of the dependent variable, the logistic regression. Findings: The results support the hypotheses that the determinants of innovation in SMEs vary in case of innovations with different level of novelty. Open innovation practices are crucial rather for SMEs delivering innovations of products and services novel on national and international markets. Research Limitation/Implication: The research does not reflect the frequency of innovative products and services at the enterprise level as well as the impact of new products and services on turnover. Originality/Value of paper: In particular, the study brings new insights into the determinants of product innovation of a lower degree of novelty applied in local and regional markets which can be an important source of development for low-density economies.

Effects of Product Innovation on the Performance of Women-led Micro and Small Enterprises in the Food Processing Industry, Tanzania.

“…The findings of the present study are consistent with Hrivnák (2022), who found that product innovativeness (new and significantly improved products) influences performance. Specifically, it was found that 35% of small-scale enterprises introduced new products and services.…”

Innovation and productivity in small and medium-sized enterprises: evidence from the Colombian manufacturing sector

“…Similarly, Hervas-Oliver et al (2021) have found limited use of external knowledge sources for process-oriented SMEs, whereas product-oriented SMEs develop internal capabilities through R&D and primarily access knowledge from the market. Spithoven et al (2013) discovered that SMEs seem to employ open innovation practices to a greater extent compared to larger firms, while Parida et al (2012) andHrivn ak (2022) found evidence that open innovation activities favor innovations with a higher degree of novelty. Gyamfi and Stejskal (2020) found that knowledge flows within members of corporate groups allows for the adoption of best practices and technologies, which in turn allows for more innovative outputs.…”