Organizational innovation outcomes in SMEs: Effects of age,size, and sector |
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Authors: | Sylvie Laforet |
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Institution: | 1. Advance/CSG ISEG, Universidade de Lisboa, Rua do quelhas, 6, 1200-109 Lisboa, Portugal;2. IME/Department of Business Administration and Management, University of Salamanca, Campus Miguel de Unamuno, s/n, 37007, Salamanca, Spain |
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Abstract: | Innovation studies concentrate on factors contributing to innovation. However, governments seek clearer understanding of innovation outcomes in their appraisal of the costs and benefits of policies to promote innovation in small and medium-sized enterprises (SMEs). This study examines organizational innovation (OI) outcomes in SMEs. Based on company interviews and a mail survey, the findings reveal OI results in enhanced productivity, margin, market leadership, and working environments. However, OI does not lead to operational efficiency and employees’ retention. Organizational innovation leads to companies operating outside their core competency but does not have an adverse environmental impact. Organizational innovation has greater impact on small firms. The paper includes practical and theoretical implications. |
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