A review on Innovation and its Strategic Importance to the Growth of Small and Medium Enterprises (SMEs)
Keywords:
innovation, competitiveness, Small and Medium-sized Enterprises (SMEs)
Abstract
This is a conceptual paper to review the innovation concept and determine the strategic importance of innovation towards the growth of Small and Medium-sized Enterprises (SMEs) globally. The study reviews the extant literature on the role of innovation in keeping SMEs competitive and sustainable in their business. This study’s findings show the evidence from past literature on the importance of innovation to SMEs’ growth, and its effect on SMEs if they failed to innovate. Another information that SMEs can gain when reading this paper is the definitions of innovation viewed from different perspectives and help SMEs get involved with relevant innovation activities.
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References
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Anggadwita, G. & Mustafid, Q.Y. (2013). The 5th Indonesia International Conference on Innovation, Entreprenuership, and Small Business (IICIES 2013).
Baregheh, A., Rowley, J., & Sambrook, S. (2009). Towards a multidisciplinary definition of innovation. Management Decision, 47(8), 1323–1339. doi: 10.1108/00251740910984578
Bernama. (2017, September 8). Press release: Ambank launches entrepreneurship challenge ‘AMBANK BIZRACE’. Bernama MREM. Retrieved from http://mrem.bernama.com/ viewsm.php?idm=29994
Bessant, J. & Tidd, J. (2007). Innovation and Entrepreneurship. Innovation and Entrepreneurship.
Bureau of Labor Statistics. (November 2017). Survival rates of establishments, by year started and number ofyears since starting, 1994-2015. Retrieved from https://data.bls.gov/cgi- bin/print.pl/bdm/entrepreneurship/bdm_chart3.htm
Chen, S. (2017). The relationship between innovation and firm performance: A literature review.
Chen, Y. C., Lee, C. S., Tsui, P. L., & Yu, T. H. (2012). Investigating organizational open innovation climate and relationships. Australian Journal of Business and Management Research, 2(5), 69-75
Cho, H., Pucik, V. 2005. Relationship between innovativeness, quality growth, profitability, and market value. Journal of Strategy Management, 24(26), 525.
Chong, W. Y. (2012). Critical success factors for small and medium enterprises: Perceptions of entrepreneurs in urban Malaysia. Journal of Business and Policy Research, 7(4), 204-215. Retrieved from http://wbiaus.org/14.%20Wei.pdf
Cohen, W. M., & Klepper, S. (1996). Firm Size and the Nature of Innovation within Industries: The Case of Process and Product R&D. The Review of Economics and Statistics, 78(2), 232. doi: 10.2307/2109925
Damanpour, F., & Evan, W. M. (1984). Organizational Innovation and Performance: The Problem of "Organizational Lag". Administrative Science Quarterly, 29(3), 392. doi: 10.2307/2393031
De Geest, D. S., Follmer, E. H., Walter, S. L., & O’Boyle, E. H. (2015). The Benefits of Benefits: A Dynamic, Approach to Motivation-Enhancing Human Resource Practices and Entrepreneurial Survival. Journal of Management.1-30.
Distanont, A., & Khongmalai, O. (2018). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Sciences. doi: 10.1016/j.kjss.2018.07.009
Golovko, E., & Valentini, G. (2010). Exploring the Complementarity between Innovation and Export for SMEs Growth. SSRN Electronic Journal. doi: 10.2139/ssrn.1091130
Hove, P., & Tarisai, C. (2013). Internal factors affecting the successful growth and survival of small and micro agri-business firms in Alice communal area. Journal of Economics, 4(1), 57-67.
Hult, G. M., Hurley, R. F., & Knight, G. A. (2004). Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management, 33(5), 429–438. doi: 10.1016/j.indmarman.2003.08.015
Jafri, M. H. (2010). Organizational Commitment and Employee’s Innovative Behaviour. Journal of Management Research, 10(1), 62-68.
John Wiley, 462 pp., ISBN: 978‐0‐470‐03269‐5. pbk. International Journal of Entrepreneurial Behavior & Research, 14(2), 121–124. doi: 10.1108/13552550810863107
Li, X., & Zheng, Y. (2014). The Influential Factors of Employees’ Innovative Behavior and the Management Advices. Journal of Service Science and Management, 07(06), 446–450. doi: 10.4236/jssm.2014.760
Mohd Sallem, N. R., Mohd Nasir, N. E., Mohd Nori, W. M. N., & Che Ku Kassim, C. K. H. (2017). Small and Medium Enterprises: Critical Problems and Possible Solutions. International Business Management, 11, 47-52.
Normah (2006) Normah, M. A. (2006). SMEs: Building block of economic growth. Paper presented at the National Statistical Conference, Malaysia. 4 – 5 September.
NSDC. (2014). SME Annual Report 2013/2014. September 2014. Retrieved from:http://www.smecorp.gov.my/vn2/node/1475
Oslo Manual: READ online. (n.d.). Retrieved from https://read.oecd-ilibrary.org/science-and- technology/oslo-manual_9789264013100-en. Hult, Hurley, & Knight, 2004
SBA. (2017). Small Business Administration U.S. Small Business Administration, Office of Advocacy. August 2017. Retrieved from https://www.sba.gov/sites/default/files/advocacy
Zahra, S. A., & Covin, J. G. (1994). The financial implications of fit between competitive strategy and innovation types and sources. The Journal of High Technology Management Research, 5(2), 183–211. doi: 10.1016/1047-8310(94)90002-
