Revista:
European Business Review
ISSN:
0955-534X
Año:
2011
N°:
OP-197-E
Págs.:
59 - 63
Stronger competition and more demanding customers require companies to deliver exceptional service and ultimately offer differentiated value propositions in an efficient way. To do so successfully, companies need to innovate and continuously improve their service models, but with a holistic view that ensures coherence between strategy and operations, as well as between the needs of customers and employees.
Revista:
JOURNAL OF TECHNOLOGY MANAGEMENT AND INNOVATION
ISSN:
0718-2724
Año:
2011
Vol.:
6
N°:
2
Págs.:
14 - 39
This research contributes to the understanding of how different practices of innovation management are related to mid- and long-term growth and profitability. Governments and regional development agencies invest relevant budgets to foster innovation in small and medium enterprises (SMEs) and improve their innovation management practices to make them more competitive. Nevertheless, it is not clear what impact these practices have on a company's performance over a long period of time. We propose a model to audit and classify innovation practices and empirically test the impact of innovation practices on the firms' long-term financial performance, using a broad sample of companies in the electronics sector. Our empirical results show that, within a regional context, companies that are similar in terms of size, position in the value chain, and ownership structure follow similar innovative practices. Furthermore, the use of a systematic approach for innovation leads to revenue growth but does not necessarily increase profit or productivity.