The idiosyncrasy of research and development efficiency across types of small‐ and medium‐sized enterprises: evidence from Korea

Small‐ and medium‐sized enterprises (SMEs) are considered to be the main driving force behind economic and employment growth. However, the low productivity levels of SMEs cannot be explained by lower levels of R&D investment, but are instead a consequence of a lack of research and development (R&D) efficiency that would have been adequate for making firms more competitive. To investigate any differences in R&D efficiency that impact the company overall performance in economic and employment performance, we analyze various types of SMEs in Korea. This paper applies two estimation methods: data envelopment analysis and regression analysis. This study takes three relevant factors of output: (1) the number of patents, (2) the number of success in terms of technology development, and (3) the level of profit attained through new products. Additionally, the study's model incorporates three parts of input: (1) human resources, (2) development periods, and (3) R&D budget. In the context of this paper, a comparison of the factors regarding efficiency is performed based upon the following criteria: the level of novelty, the length of a product's life cycle, and the time period of a competitor emulation of the product created by original enterprise. Comparing the factors that influence the efficiency of types within each criterion is meaningful in analyzing the differences in efficiency outcome on the various types among SMEs. Our findings indicate that SMEs vary among types in terms of efficiency and that there are also differences causing factors according to types.     

Profitability of small‐ and medium‐sized enterprises in high‐tech industries: the case of the biotechnology industry

This paper investigates the profitability determinants of small‐ and medium‐sized enterprises in high‐tech industries. Literature review suggests that innovator position, market awareness, niche operation, and internationalization should have positive impacts on SMTEs' profitability. However, the empirical results partially agree with, and partially dissent from, the propositions. Copyright © 2003 John Wiley & Sons, Ltd.     

The effects of stakeholder integration on firm‐level product innovativeness: insights from small and medium‐sized enterprises in Ghana

In spite of growing research on the influence of external stakeholders on firm outcomes, there is a paucity of research on how they influence innovation in emerging economies. In addition, the specific environmental factors that may influence the effect of stakeholder integration (SI) on firm innovation is less understood. Using data collected from 248 small‐ and medium‐sized enterprises in Ghana, this paper develops and tests a model that examines the relationship between SI and firm‐level product innovativeness. The findings from the study indicate SI positively relates to product innovativeness. Moreover, under conditions of higher competitor pressure and greater customer expectations, the effect of SI on product innovativeness is amplified. Contributions for theory and practice are discussed.