Title: On why some firms are more innovative than others: a firm-level study of heterogeneity in innovation performance

Authors: Hnn-Hui Hii

Addresses: Ministry of Science, Technology and the Environment, Level 6, Block C5, Parcel C, Federal Government Administration Centre, 62662 Putrajaya, Malaysia

Abstract: In this paper, a study into innovative capacities of SMEs in the UK is reported. The ability of a firm to develop successful innovations is a function of their innovative capacities. The resource-based perspective suggests that performance advantage accrues to firms with imitable resources and capabilities. This paper suggests a framework for managing capacity building for innovation. The model discussed herein explains heterogeneity in innovation performance. Four major dimensions of capacity to innovate are discussed: culture, resources, competence, and networking. A firm|s innovation performance is related to the ability of its management to nurture innovative capacity.

Keywords: innovative capacity; managerial action; innovation performance; capacity threshold; resource-based view.

DOI: 10.1504/IJEIM.2004.004723

International Journal of Entrepreneurship and Innovation Management, 2004 Vol.4 No.2/3, pp.159 - 177

Published online: 07 Jul 2004 *

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