Title: Determinants of technological and no-technological innovation in SMEs: the case of Crete

Authors: Evangelos Tsoukatos; Efthalia Tabouratzi; Konstantinos Vassakis; Christos Lemonakis

Addresses: Department of Accounting and Finance, School of Management and Economics, University of Applied Sciences of Crete, Greece; Business School, University of Nicosia, Cyprus ' Department of Accounting and Finance, School of Management and Economics, University of Applied Sciences of Crete, Greece ' School of Management and Economics, University of Applied Sciences of Crete, Greece ' Department of Accounting and Finance, School of Management and Economics, University of Applied Sciences of Crete, Greece

Abstract: The purpose of this study is to investigate the drivers of both technological and non-technological innovation on evidence from a sample of manufacturing SMEs in the region of Crete (Greece) during a period of economic turbulence. Using probit models the drivers of innovation, both technological and non-technological, are examined. The empirical results of the study indicate that SMEs' innovation activity is driven primarily by firm-specific features such as marketing, financial performance, exporting activity and R&D. The contribution of this study rests on the investigation of determinants for both technological and no-technological innovation in contrast to the majority of published research that focuses primarily on technological innovation. In addition, to the extent that innovation is unanimously, considered significant for firms' overall performance, findings of the study provide implications for practitioners, managers and policy makers to become appropriately equipped for addressing the challenges of the unstable market environment that enterprises operate in.

Keywords: innovation; competitiveness; small and medium enterprises; SMEs; technological; no technological innovation.

DOI: 10.1504/GBER.2018.094436

Global Business and Economics Review, 2018 Vol.20 No.5/6, pp.544 - 557

Received: 12 Jan 2017
Accepted: 19 May 2017
Published online: 03 Sep 2018 *

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