Innovation and firm size: an empirical study for Spanish engineering consulting companies

Abstract

This paper studies the influence of firm size over degree of innovation in a service sector, specifically in engineering consulting and technology services in Spain. A multiple regression analysis was used to test hypothesis about firm size positive influence over degree of innovation in services. To avoid distortions in this main relationship, three control variables were introduced (degree of standardisation, degree of customisation, and number of firm's activities). Results seem to indicate that firm size, measured by turnover, is related positively with degree of innovation, independently of moderate influence of control variables.

Does incremental and radical innovation performance depend on different types of knowledge accumulation capabilities and organizational size?

“…However, the effect of this variable on innovation performance is not altogether clear. While a number of studies have analyzed the direct effect of size on the degree of innovation (e.g., Arias-Aranda et al, 2001), and on innovation in terms of R&D, new products and processes or patents (e.g., Cáceres et al, 2011;Laforet, 2008), less attention has been paid to controlling for this effect on different types of innovation performance. Moreover, the evidence of size on incremental and radical innovation performance reports contradictory results; although knowledge accumulation is one of the antecedents of innovation performance that, along with size, has been most widely studied, relatively little empirical research has been reported on the effect of size on internal knowledge creation capability and absorptive capability.…”

Evaluating innovation diffusion readiness among architectural and engineering design firms: Empirical evidence from Australia

“…In fact, firm size and firm type have been identified in past research as one of the determinants of innovation. For example, Arias-Aranda et al [48] found that the degree of innovation is positively associated with firm size according to their research conducted with engineering consulting firms in Spain. With respect to firm type, a study by Ankrah and Langford [49] on the comparison of organisational culture between contractors and architects seem to shed some light on certain organisational aspects that may relate to the understanding of IDR within the context of this study.…”

Innovation in Realizing Quality of Production in Malaysia

“…Innovation can be described as the creative process through which new products, services or production processes are developed for business unit (Arias-Aranda, Minguela-Rata & Rodriguez-Duarte, 2001). Szeto (2000) define innovation as any newly established idea, practice or material artefact that is professed to be new by the early units of adoption within the appropriate environment or as adapting new ideas and artefacts that are relevant to product development for a particular market.…”

“…In the same paper, he also provides personality traits for innovative individuals, which consist of high valuation of aesthetic qualities in experience; broad interests; attraction to complexity; high energy; independence of judgment; intuition; self-confidence; ability to accommodate opposites; firm sense of self as creative; persistence; curiosity; energy; intellectual honesty, and internal locus of control (reflective/introspective). Most successful innovations are based either on the collective result of incremental changes of products and production processes or on creative blends of already existing techniques, ideas and methods (Arias-Aranda et al, 2001). Bodewes (2002) affirms that organic systems appear to be a more appropriate organizational context for innovation rather than mechanistic systems.…”