Skip to main content
SpringerLink
Log in

Innovativeness of Micro and Small Enterprises – Are Their Innovation Drivers Different?

  • Conference paper
  • First Online:
Proceedings on 18th International Conference on Industrial Systems – IS’20 (IS 2020)

Part of the book series: Lecture Notes on Multidisciplinary Industrial Engineering ((LNMUINEN))

Included in the following conference series:

  • 735 Accesses

Abstract

In the second half of the 20th century the labor cost, along with the level of industrialization, was considered to be the fundamental competitiveness factor. In today’s competitive business environment, innovation is the vital ability and activity for firm’s sustainability. Although the innovation is widely examined in the literature, further research is needed in this field to address the factors which determine the innovativeness of micro and small enterprises. The purpose of this research was to fill in that gap through development and implementation of a methodology for modelling of the innovativeness of micro and small enterprises. The first step is the analysis of the relevant literature and mapping two types of factors that are widely discussed: influencing factors – supporting innovation and influenced factors. The conceptual model that was developed based on these findings is refined through structured interviews of 18 experts from different stakeholders in the innovation ecosystem, and from different regions. The refined model was validated through 150 quantitative interviews with micro and small companies in the Northeast region of North Macedonia. The following factors were validated as most influential in the analyzed region: the openness of the company, the identification of the employees with the company, communication, owner’s profile, educational diversification of employees and encouraging employees to propose innovation. The methodology and the models offer significant input into future research, in the development of analytical tools on macro level, as well as for modelling of innovativeness on company level.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 299.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 379.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 379.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Baumol, W.J.: Innovations and growth: two common misapprehensions. J. Policy Model. 25(5), 435–444 (2003). https://doi.org/10.1016/S0161-8938(03)00038-3

    Article  Google Scholar 

  2. Bhaskaran, S.: Incremental innovation and business performance: small and medium-size food enterprises in a concentrated industry environment. J. Small Bus. Manag. 44(1), 64–80 (2006). https://doi.org/10.1111/j.1540-627X.2006.00154.x

    Article  MathSciNet  Google Scholar 

  3. DiPietro, W.R., Anoruo, E.: Creativity, innovation, and export performance. J. Policy Model. 28, 133–139 (2006). https://doi.org/10.1016/j.jpolmod.2005.10.001

    Article  Google Scholar 

  4. Huggins, R., Strakova, L.: Knowledge-based economic development in emerging regions: policy issues and implications in the Balkan Peninsula. Reg. Stud. 46(7), 961–975 (2012)

    Article  Google Scholar 

  5. Polenakovik, R., Stankovska, I., Jovanovski, B.R.: Macedonian national innovation system - main challenges. Econ. Rev. J. Econ. Bus. 12(2), 21–34 (2014)

    Google Scholar 

  6. Sukhov, A., Sihvonen, A., Olsson, L.E., Magnusson, P.R.: That makes sense to me: openness to change and sensemaking in idea screening. Int. J. Innov. Manag. 22(08), 1840009 (2018). https://doi.org/10.1142/S1363919618400091

    Article  Google Scholar 

  7. Aloulou, W., Fayolle, A.: A conceptual approach of entrepreneurial orientation within small business context. J. Enterp. Cult. 13(1), 24–45 (2005)

    Article  Google Scholar 

  8. Chesbrough, H.W.: Open Business Models: How to Thrive in the New Innovation Landscape, p. 1. Harvard Business School Press, Boston (2006)

    Google Scholar 

  9. Adams, R., Bessant, J., Phelps, R.: Innovation management measurement: a review. Int. J. Manag. Rev. 8(1), 21–47 (2006)

    Article  Google Scholar 

  10. Robertson, P.L., Casali, G.L., Jacobson, D.: Managing open incremental process innovation: absorptive capacity and distributed learning. Res. Policy 41(5), 822–832 (2012)

    Article  Google Scholar 

  11. Teece, D.J.: Explicating dynamic capabilities: the nature and micro foundations of (sustainable) enterprise performance. Strateg. Manag. J. 28(13), 1319–1350 (2007)

    Article  Google Scholar 

  12. Hewitt-Dundas, N.: Resource and capability constraints to innovation in small and large plants. Small Bus. Econ. 26(3), 257–277 (2006)

    Article  Google Scholar 

  13. Wynarczyk, P., Piperopoulos, P., McAdam, M.: Open innovation in small and medium-sized enterprises: an overview. Int. Small Bus. J. 31(3), 240–255 (2013)

    Article  Google Scholar 

  14. Lee, S., Park, G., Yoon, B., Park, J.: Open innovation in SMEs – an intermediated network model. Res. Policy 39(2), 290–300 (2010)

    Article  Google Scholar 

  15. Vahter, P., Love, J.H., Roper, S.: Openness and innovation performance: are small firms different? Ind. Innov. 21(7/8), 553–573 (2014)

    Article  Google Scholar 

  16. Kleinschmidt, E.J., Cooper, R.G.: The impact of product innovativeness on performance. J. Prod. Innov. Manag. 8(4), 240–251 (1991)

    Article  Google Scholar 

  17. Erickson, G., Jacobson, R.: Gaining competitive advantage through discretionary expenditures: the returns to R&D and advertising. Manag. Sci. 38(9), 1264–1279 (1992)

    Article  Google Scholar 

  18. Hurley, R., Hult, G.T.M.: Innovation, market orientation and organizational learning: an integration and empirical examination. J. Mark. 62, 42–54 (1998)

    Article  Google Scholar 

  19. Subramanian, A.: Innovativeness: redefining the concept. J. Eng. Tech. Manag. 13(3/4), 223–243 (1996)

    Article  Google Scholar 

  20. Damanpour, F.: Organizational innovation: a meta-analysis of effects of determinants and moderators. Acad. Manag. J. 34, 555–590 (1991)

    Google Scholar 

  21. Stankovska, I., Josimovski, S., Edwards, C.: Digital channels diminish SME barriers: the case of the UK. Econ. Res.-Economska Istraživanja 29(1), 217–232 (2016)

    Article  Google Scholar 

  22. Colombelli, A., Haned, N., Le Bas, C.: On firm growth and innovation: some new empirical perspectives using French CIS (1992–2004). Struct. Chang. Econ. Dyn. 26, 14–26 (2013)

    Article  Google Scholar 

  23. Mansfield, E.: Entry, Gibrat’s law, innovation and the growth offirms. Am. Econ. Rev. 52, 1023–1051 (1962)

    Google Scholar 

  24. Del Monte, A., Papagni, E.: R&D and the growth of firms: empirical analysis of a panel of Italian firm. Res. Policy 32, 1003–1014 (2003)

    Article  Google Scholar 

  25. Cassia, L., Colombelli, A., Paleari, S.: Firms’growth: does the innovation system matter? Struct. Chang. Econ. Dyn. 20, 211–220 (2009)

    Article  Google Scholar 

  26. Corsino, M., Gabriele, R.: Product innovation and firm growth: evidence from the integrated circuits industry. Ind. Corp. Chang. 20, 29–56 (2010)

    Article  Google Scholar 

  27. Jovanovski B., Polenakovik R., Stankovska I., Kochov A., Minovski R.: Modelling the innovativeness of micro and small enterprises. In: ETHAC 2019 – The European Triple Helix Congress - Responsible Innovation & Entrepreneurship, Thessaloniki (2019)

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. FH JOANNEUM University of Applied Sciences, Alte Poststraße 149, 8020, Graz, Austria

    Bojan Jovanovski

  2. Faculty of Mechanical Engineering, Ss. Cyril and Methodius University in Skopje, Ruger Boskovikj 18, 1000, Skopje, North Macedonia

    Radmil Polenakovik, Trajce Velkovski & Bojan Jovanoski

  3. National Center for Development of Innovation and Entrepreneurial Learning, Bul. 8-mi Septemvri 2-9, 1000, Skopje, North Macedonia

    Ivana Stankovska

Authors
  1. Bojan Jovanovski
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Radmil Polenakovik
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Ivana Stankovska
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Trajce Velkovski
    View author publications

    You can also search for this author in PubMed Google Scholar

  5. Bojan Jovanoski
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Bojan Jovanovski .

Editor information

Editors and Affiliations

  1. Faculty of Technical Sciences, University of Novi Sad, Novi Sad, Serbia

    Bojan Lalic

  2. Faculty of Technical Sciences, University of Novi Sad, Novi Sad, Serbia

    Danijela Gracanin

  3. Faculty of Technical Sciences, University of Novi Sad, Novi Sad, Serbia

    Nemanja Tasic

  4. Faculty of Technical Sciences, University of Novi Sad, Novi Sad, Serbia

    Nenad Simeunović

Rights and permissions

Reprints and permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Jovanovski, B., Polenakovik, R., Stankovska, I., Velkovski, T., Jovanoski, B. (2022). Innovativeness of Micro and Small Enterprises – Are Their Innovation Drivers Different?. In: Lalic, B., Gracanin, D., Tasic, N., Simeunović, N. (eds) Proceedings on 18th International Conference on Industrial Systems – IS’20. IS 2020. Lecture Notes on Multidisciplinary Industrial Engineering. Springer, Cham. https://doi.org/10.1007/978-3-030-97947-8_54

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-97947-8_54

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-97946-1

  • Online ISBN: 978-3-030-97947-8

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics

Search

Navigation