Open strategies and innovation performance

Scholarly interest in the relationship between open strategies and innovation performance has been unfailing, and in recent years has even increased. The present paper focuses on inbound open strategies and reviews various approaches (transaction costs, competences, open innovation) dealing with firms´ decisions about these strategies. The different approaches result in different conclusions about the optimum level of openness. The different approaches are tested empirically taking account of the different degrees of openness (closed, semiopen, open, ultraopen) and their effects on sales of new–to-the-market products, and using a panel of Spanish firms from a CIS-type survey for 2004-2008. Our results show that closed and semiopen strategies are the most common among Spanish firms and that open strategies produce the best performance, while semiopen strategies are more effective than closed ones. These results hold across different subsamples based on firm size and industry, and are robust to different ways of defining the indicators and to different estimation methods.open innovation strategies, collaboration, transaction costs, competences, CIS surveys, R&D, technology policy

The impact of the economic conditions on the innovation activity of the companies from selected Balkan states

The literature review reveals diverging views on the influence of economic cycles on the innovation activity of companies. This article is a voice in this discussion. It provides, empirically verified arguments, allowing one to support or reject the accepted research hypotheses. These assume that: (1) The expectations with respect to income dynamics play a more important role in stimulating innovation activity than the dynamics of (actual) income levels; and (2) Different economic structures and levels of technological development in the chosen Balkan states, despite the geographic proximity of these states and similarity in economic situation, influence the geographic differentiation in terms of the innovation activity. The obtained research results show a greater differentiation in terms of actions of companies than previously thought. It has been confirmed that when the companies sense an improvement in economic situation, their innovation activity increases, this is, however, accompanied by a noticeable anticipatory element. It turned out that the expectations regarding an improvement in economic conditions have an additional stimulating effect on such an activity, whereas the recession itself, as well as the expectations in that respect, have a de-stimulating effect. It turned out that the expectations with regard to the future economic situation are the most important here, a factor that has been neglected so far

An Examination of the determinants of entrepreneurship in Thai high technology start-ups

This study advances understanding of the complexity of sustaining growth in high technology-based businesses. The study builds on the conceptual and applied insights on business growth from the entrepreneurship literatures to develop a model. The model is developed to investigate the impact of determinants subsumed under the three key-based factors, entrepreneurship, innovation and firm growth dynamics on the firms’ innovative entrepreneurial activities that might lead to enhanced economic growth This thesis uses both qualitative and quantitative methods to describe the determinants and test the relationships. The quantitative survey collected data from 521 young Thai start-ups. The qualitative study involved interviews with the CEO/owners of seven high-tech firms in Thailand. The quantitative and qualitative evidence from these firms led to a much stronger explanation of the performance of the high-tech sample. This thesis has significant theoretical and practical implications. From a theoretical viewpoint, this study provides detailed evaluation on the growth determinants from a developing country perspective. The results shown that the young high-technology firms in Thailand were similar to firms that had been examined in the literature with regard to their characteristics, innovation and firm growth dynamics but differed with regard to the utilisation of the key firm based factors subsumed under the three key-based factors, entrepreneurship, innovation and firm growth dynamics. From a practical viewpoint, these findings indicate that the competitiveness of young technology-based firms can be enhanced by developing critical capabilities to assist the right strategies for better performance. The thesis provides important new insights into this group of firms in a developing country. The analysis of the empirical and qualitative results showed the role and impacts of the determinants on the firms’ sustainable growth and highlighted the importance of the managerial ability to dynamically manipulate these key firm based determinants to sustain growth

The Rapid Internationalisation Of High Tech Young Firms In Germany And The United Kingdom

A Summary Report for the Anglo-German Foundation for the Study of Industrial SocietyAnglo-German Foundation for the Study of Industrial Societ

Obstacles on the internationalization process for the "Born Global" SMEs in China

With China’s deeper and wider integration into the world economy, Chinese small and medium sized enterprises (SMEs) have to face the global not just domestic competition. In 2016, the turnover of foreign trade of SMEs occupied over 60% of the China’s total volume of imports and exports. Thus, it is important to find out how SMEs may enhance their competitiveness in the world market especially how they can internationalise in their early entry stage. Two internationalisation models have been widely used by those firms engaging in international business, which are traditional stage model and born global model. The traditional stage mode considers internationalisation as a gradual process. In contrast, firms adopting born global mode are the small, technology-oriented companies that operate in international markets from the earliest days of their establishment. They are business organisation that, from inception, seeking to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries. Unlike traditional stage model, internal factors as entrepreneurship, innovation and network play more important roles in firm’s internationalisation process. In many developed countries, born global model is a better strategic choice for SMEs, which pursue international development nowadays. This research conducts a series of quantitative analyses. First, a unique panel dataset: China Industry Business Performance Database covering the period of 2003 and 2014 is used to examine whether there is difference in performance between born global firms and firms adopting the traditional stage. Second, the impact of the role influential factors inducing firms to follow the born global path on the selected SMEs are investigated. Logit panel regressions are performed for this purpose. Finally, using the primary data collected through questionnaires and a Structural Model Equation model analysis, the role of entrepreneurship played in the performance of Born Global firms are examined. The main findings of this research generally support the hypotheses derived from our theoretical framework. It shows positive a positive relationship between born global mode and firm’s performance. And the choice to be a born global firm is affected by the location and R&D investment but not its size. In addition, it also indicates that the entrepreneurs in born global firms are aware that international knowledge is significantly related to firm’s performance. The study contributes in offering new insights into the internationalisation of Chinese SMEs by investigating the difference in firm performance between two internationalisation models and influential factors of born global firms in the context of China in particular

Ettevõtete innovatsioonistrateegiate dünaamika ja seosed avaliku sektori toetustega

Innovatsiooni peetakse õigustatult majandusarengu võtmeks. Innovaatilisuse suurendamiseks toetatakse eraettevõtlust riikliku abiga, millest tulenevalt tekib küsimus – kas toetused tõepoolest muudavad ettevõtete käitumist? Doktoritöö keskendub ettevõtete innovatsioonistrateegiate dünaamikale ning seostele ettevõtlustoetustega. Viimased võivad olla näiteks investeeringute tegemiseks, teadus- ja arendustegevuseks, innovatsioonide turule toomiseks, turundusplaanideks, jne. Eesti näitel on hinnatud ettevõtete innovatsioonistrateegiaid, mis toetuvad ühistele sisenditele. Olgu selleks koostööpartnerite valik, valikud investeeringute tegemisel või teadmiste allikad. Selgub, et ettevõtted on võimelised oma innovatsioonistrateegiat muutma tihti, vajadusel mõne aasta jooksul. Siiski on tegemist astmelise arenguga, kõigepealt tulevad lihtsamad strateegiad ja alles seejärel keerulisemad. Seosed ettevõtlustoetustega ei ole ühtsed. Näiteks investeeringutoetustega ettevõtted võtavad suurema tõenäosusega kasutusele lihtsamad innovatsioonistrateegiad. Teadus- ja arendustegevusele suunatud toetustega ettevõtted aga juba keerulisemad strateegiad. Töötajate oskuste arendamisele suunatud toetustega ettevõtted püsivad kauem innovaatilised. Siiski on mitmed toetuste tüübid, kus pole selge, et nad üldse oleks seotud innovatsioonistrateegiatega. Doktoritööst ilmneb, et ettevõtlustoetused peaksid olema disainitud täpsemaid tegevuspõhiseid sihtgruppe silmas pidades. Innovatsioonistrateegiates ei tasu oodata suuri hüppeid vaid järkjärgulist arengut. Kuid oma sihtgrupis peaksid nad olema piisavalt väljakutsuvad, et toetada strateegiaid mis on kogu majandusele kasulikud – avatud, koostööaltid ja teadmuspõhised.Innovation has been on the forefront of public policy as a panacea for economic ills for a long time. Governments on various levels support the creation and diffusion of innovations in private firms with public money. It is justified to ask – does it change firm behaviour? The thesis analyses whether firms change their innovation strategies if they have received business support. The support can be in various forms, such as financial aid to investments, training and skill development, developing marketing plans and exporting plans, innovation and R&D assistance, and so forth. Based on the Estonian example, some commonalities can be established about innovation strategies. Firms adopt different styles of creating innovations relying on diverse inputs, such as their cooperation partners, investment choices or information sources. Firms change between different strategies often and with a short time-frame, in less than two years. Meaning that with proper incentives, it is possible to influence firm behaviour without long lags. However, shifts between strategies show incremental evolution. Firms without any innovation strategies develop simple strategies first, followed by more complex strategies later. The relationship with business support is not uniform. Support for physical capital investments is positively related with simple innovation strategies. Support for innovation and R&D activities is more related with complex innovation strategies, based on open innovation strategies and cooperation with universities. Firms with training and skill development instruments are less likely to stop being innovative at all. Business support should adapt to the proper target audience. Leap-frogging might have limits if firms are very inexperienced. In addition, policy instruments ought to be demanding for firms. Innovation policy instruments should be challenging enough to create strategies that we wish to promote — cooperative, open and R&D intensive.https://www.ester.ee/record=b530632

The promotion and development of small and medium enterprises : an investigation of the effectiveness of assistance programmes and the participation of SMEs in the export sector in Swaziland : a thesis submitted in fulfilment of the requirements for the degree of Doctor pf Philosophy in Development Studies at Massey University, Palmerston North, New Zealand

Small and Medium Enterprises (SMEs) are increasingly occupying a prominent position in the policy agendas of both developed and developing countries, owing to the recognition of the significant potential contribution that these enterprises can make to national economic and social development. In addition, the exporting successes of SMEs in industrialised countries, in the last decade, have highlighted the critical role of SMEs in export- and private-sector-led economic growth, consequently many developing countries are refocusing their attention on the search for strategies and the design of policies and assistance programmes aimed at the promotion and development of their SME sectors. Sound policies to assist more SMEs to export, however, must be informed by a clear understanding of any systematic differences between current exporters and non-exporters. This study employed a multi-method approach, making use of both qualitative and quantitative methods, to investigate the nature and extent of SMEs' export involvement and the effectiveness of SME promotion and development programmes in Swaziland. In particular various firm-specific and managerial characteristics believed to shape the export behaviour of SMEs were utilised to investigate why some SMEs are exporters and some are not. The results of this study revealed that for many SMEs in Swaziland the export orientation is zero. The few that are exporting are mostly found in the manufacturing, agriculture and forestry industries. Foreign language proficiency and the frequency of business-related foreign trips are amongst the significant variables in explaining export propensity amongst SMEs in Swaziland. On the effectiveness of assistance programmes, this investigation showed that awareness levels and usage rates differ among assistance programmes and by the firms' market orientation. Generally, managers of SMEs are more aware of (and have accessed more) domestically oriented programmes than export oriented ones, which to some extent explains SMEs' poor export involvement. A policy recommendation that arises instinctively from this study is that official support, financial or otherwise, is likely to bear more fruit in exporting if targeted towards currently non-exporting SMEs and aimed at upgrading the language skills of managers, and assisting with bona fide business-related functions outside the country

Entrepreneurial Experience and Science Parks and Business Performance in Beijing, China

China is the second largest economic entity in the world. It is well acknowledged that small businesses have made significant contributions to Chinese economic development in terms of employment generation, income generation and poverty reduction. Entrepreneurs are the key people who are driving small businesses forward, and the Chinese Government has invested substantially in science parks. However, our understanding of entrepreneurship activities, science parks and especially prior business experience and business performance in China remains under researched. Therefore, to fill this gap, this research explores entrepreneurs’ business performance of those who were on science parks against those whose businesses were off-park in Beijing China. Human capital theory experience and the RBV provide the theoretical framework which were used to test the entrepreneur’s prior business ownership experience against the performance of the businesses in terms of innovation, exporting activity, employment growth, profitability and the usage of e-commerce. This research adopted a quantitative methodology to analyse a new data set gathered by the researcher. In the year of 2009, 462 valid questionnaires were received from the firms located on and off ZhongGuanCun Science Park (ZSP), and that represented a 12% response rate. The results show that prior business ownership experiences and science park location have strong associations with business performances. In particular, firstly habitual entrepreneurs are more likely than novice entrepreneurs to be innovators, and in general to have a better business performance; secondly, business located on science parks generally performed better than off-park businesses and lastly, interestingly, there is no clear evidence showing that habitual entrepreneurs have better usage of e-commerce than novice entrepreneurs. According to these key research findings, implications are elucidated for Chinese practitioners and policy makers