Innovation and performance in Spanish manufacturing SMEs
by Howard Van Auken, Antonia Madrid-Guijarro, Domingo Garcia-Perez-de-Lema
International Journal of Entrepreneurship and Innovation Management (IJEIM), Vol. 8, No. 1, 2008

Abstract: Innovation facilitates how SMEs respond to market changes and maintain their competitive advantage. This paper analyses the relationship between the degree of innovation (measured as innovation in products, processes and administration systems) and performance among 1,091 Spanish manufacturing SMEs. The results show that innovation positively impacts SMEs performance in low and high technology industries. Innovation was more important to achieving a competitive advantage to high technology firms than low technology firms. These results support innovation as being important to a firm's sustainable competitive advantage.

Online publication date: Sun, 01-Jun-2008

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