Daniel Prajogo is associate professor in the Department of Management, Monash University.
Antecedents of Service Innovation in SMEs: Comparing the Effects of External and Internal Factors
Article first published online: 6 AUG 2013
© 2013 International Council for Small Business
Journal of Small Business Management
Volume 52, Issue 3, pages 521–540, July 2014
How to Cite
Prajogo, D. and McDermott, C. M. (2014), Antecedents of Service Innovation in SMEs: Comparing the Effects of External and Internal Factors. Journal of Small Business Management, 52: 521–540. doi: 10.1111/jsbm.12047
- Issue published online: 10 JUN 2014
- Article first published online: 6 AUG 2013
Increasing attention has been paid of late to the importance of effectively developing both exploratory and exploitative innovation in firms. Small and medium-sized enterprises (SMEs) play a significant role in the growth of economies and in job creation, yet at the same time they can differ significantly from larger firms with respect to effective management. Recent research has examined the effects of environmental and organizational characteristics on the effective development of exploratory and exploitative innovation. SMEs differ from larger firms in many ways, such as the availability of resources, and it is unclear whether findings based on studies in larger firms will also hold true for SMEs. As such, it is important to explore and understand the extent to which SMEs differ from large firms in this important area. Specifically, this paper empirically examines the extent to which organizational factors (connectedness, centralization, formalization) and business environment (dynamism and hostility) are associated with different types of innovation orientations (exploratory and exploitative) among SMEs.