Modeling the impact of service innovation for small and medium enterprises: A system dynamics approach

Purpose The present study focuses on two basic determinants of company innovation, namely quality practices of top management and process quality management. The purpose of the study is to explore the impact of these determinants on product and process innovation. Determining the impact of these dimensions of innovation on the market performance of a company is also an aim of the present study. Design/methodology/approach A research study was carried out on a sample of 433 Greek manufacturing and service companies. Data was obtained through a structured questionnaire from the Chief Executive Officers of the companies. Exploratory and Confirmatory Factor Analysis is applied to extract and validate all the latent factors considered in the suggested model, while their relationships are determined through Structural Equation Modelling. Findings The analysis of the empirical data shows that both the dimensions of company innovation examined in the present study (product and process innovation) are positively i...

Determinants of company innovation and market performance

The purpose of this study is to provide new practical and theoretical insights on how SMEs adjust and further develop business competencies, innovations and performance by utilizing market orientation, learning orientation behaviors, and financial literacy. The data was collected from manufacturing small and medium enterprises (SMEs) of textile products that had several employees between 5 and 99 people in the province of Bali and Jawa, Indonesia, in 2016. Central Java as one of the provinces that has various types of creative centers has a role big as a reference model for other provinces in the development of MSMEs. The results of the study confirm the influence of financial literacy on the performance and innovation of creative MSMEs in Central Java. This has implications that with good financial literacy, it is expected that MSMEs will be able to make the right management and financial decisions to improve performance and innovation. With this finding, it is expected that significant support will emerge from the government as a regulator, academics as educators, the private sector as a catalyst, and the community as a driver for the development of financial literacy at MSMEs in Central Java. The lack of studies in the existing literature underscores the potential contribution of this subsequent study.

The relationships between market orientation, learning orientation, financial literacy, on the knowledge competence, innovation, and performance of small and medium textile industries in Java and Bali

The purpose of this study is to provide new practical and theoretical insights into how small and medium-sized enterprises (SMEs) adjust and further develop business competencies, innovations and performance by using market orientation, learning orientation behaviors and entrepreneurial orientation.,The data was collected from manufacturing SMEs of textile products that had a number of employees between 5 and 99 people in the province of Bali, Indonesia, in 2016. Bali province was chosen as a research location because Bali was one of the tourism centers in Indonesia and even in the world was considered suitable for this research. It was because it had textile product industries that contributed in the fulfillment of the needs of tourism clothing, national economy, the fulfillment of fashion needs and foreign exchange contributors from non-oil exports (Industry and Trade Service of Bali).,Based on the results of descriptive and inferential analysis that has been conducted, it can be concluded that the answer to the problems and objectives that have been determined is market orientation, learning orientation and entrepreneurial orientation affect business performance through knowledge competence and innovation directly and its influence is significantly positive. But market orientation, learning orientation and entrepreneurial orientation do not directly have a significant positive effect on innovation through knowledge competence. Market orientation, learning orientation and entrepreneurship orientation indirectly have a significant positive effect on business performance through knowledge and innovation competencies.,The lack of studies in the existing literature underscores the potential contribution of this subsequent study. The novelty of the research is first to develop a concept of learning orientation that is linked to competence of knowledge, which this link has not been much expressed in the context of industry SMEs; second, to build the concept of innovation development of small and medium-sized industry of textile industry based on market orientation by strengthening the mediation role of competence of knowledge.

The effect of entrepreneurial orientation variables on business performance in the SME industry context

The purpose of this paper is to investigate the impact of different forms of innovation on firm growth, in terms of sales. A total of 278 samples were collected from SMEs in the manufacturing, service and trade industries throughout Kosovo. The data were analysed using a logistic regression analysis. The findings confirm the hypotheses that marketing innovation is positively associated with firm growth, while new to the firm products is negatively associated with firm growth. Other innovation attributes have resulted with non-significance value. The findings in this study can be useful for theoretical discussion, as well as for policy formulation related to introduction of innovation and SMEs development considering that innovation is critical factor in today’s market and competition. Further studies should look into how SMEs could investigate over time from the initial stage to the full development of innovation.

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Innovation types and sales growth in small firms evidence from kosovo

Purpose




This paper aims to identify the dimensions of a firm’s service innovation competence. This paper also aims to establish the relationship between a firm’s service innovation competence dimensions and customer-oriented service innovation configurations and customer adoption. This study probes the supply side of service innovation to assess the key drivers or capabilities that influence the service innovation process at the firm level.




Design/methodology/approach




This study uses the triangulation method using existing theoretical concept supplemented by 18 in-depth interviews of senior level managers from service firms from three sectors – hospitality, mobile telecommunication services and financial services. The interview findings were supplemented by 12 service innovation case studies (four from each sector). Content analysis of in-depth interviews was performed using three raters, and inter-rater reliability was tested. Case studies were categorized in terms of the strength of the innovation competence dimension observed.




Findings




Based on the content analysis of the interviews and categorization of case study observations, six distinct dimensions of the firm’s service innovation competence were identified. Four attributes of each dimension were also identified. Based on the interview insights and case observations, seven propositions are suggested, and a conceptual framework is presented to establish the relationship between the firm’s service innovation competence dimensions and service innovation configurations and customer adoption.




Research limitations/implications




This study was conducted in the Indian context and remains to be tested using quantitative research. Therefore, researchers are encouraged to test the proposed framework in a different geographical context to ascertain its validity.




Practical implications




The conceptual framework presented in the paper may help managers of service firms in building innovation capabilities that are relevant to development of customer-oriented innovations. This would lead to better customer adoption of their new services.




Originality/value




This paper fills an important knowledge gap regarding the dimensions of a critical supply-side component of service innovation, that is, innovation competence. Clear identification of competence dimensions and their relationship with customer adoption extends the current knowledge on service innovation.

Navneet Bhatnagar

Papers

The role of a firm’s innovation competence on customer adoption of service innovation