Does innovation lead to performance? An empirical study of SMEs in Taiwan

Management Research News

Volumn 30, Issue 2, 2007, Pages 115-132

  Yeh Yun Lin, Carol ^a   Yi Ching Chen, Mavis ^a  

^a NATIONAL CHENGCHI UNIVERSITY   (Taiwan)

Author keywords

Innovation; Organizational performance; Small to medium sized enterprises; Taiwan

Indexed keywords

EID: 84992928857     PISSN: 01409174     EISSN: None     Source Type: Journal    
DOI: 10.1108/01409170710722955     Document Type: Article

References (84)

1. Acha, V., Gann, D.M. and Salter, A.J. (2005), “Episodic innovation: R&D strategies for project-based environments”, Industry and Innovation, Vol. 12 No. 2, pp. 255-281.
2. Acs, Z.J. and Audretsch, D.B. (1990), Innovation and Small Firms, The MIT Press, Cambridge.
3. Afuah, A. (1998), Innovation Management: Strategies, Implementation and Profits, Oxford University Press, New York, NY.
4. Bagchi-Sen, S. (2001), “Product innovation and competitive advantage in an area of industrial decline: the Niagara region of Canada”, Technovation, Vol. 21 No. 1, pp. 45-54.
5. Brown, S.L. and Eisenhardt, K.M. (1995), “Product development: past research, present findings, and future directions”, Academy of Management Review, Vol. 20 No. 2, pp. 343-378.
6. Capon, N., Farley, J.U. and Hoenig, S. (1990), “Determinants of financial performance: a meta-analysis”, Management Science, Vol. 36 No. 10, pp. 1143-59.
7. Cardinal, L. (2001), “Technological innovation in the pharmaceutical industry: the use of organizational control in managing research and development”, Organization Science, Vol. 12 No. 1, 19-36.
8. Chandler, G.N. and Hanks, S.H. (1994), “Market attractiveness, resource-based capabilities, venture strategies, and venture performance”, Journal of Business Venturing, Vol. 9 No. 4, pp. 331-349.
9. Chang, Y.W. (2001), “The influence of organizational factors on new product development performance: the case of configuration management of central satellite firms”, unpublished thesis, National Chi-Nan University (in Chinese).
10. Cummings, L.L. and Paramita, B. (1977), “Organizational performance as a function of organizational size and structure: a comparative analysis of Indonesian industry”, Academy of Management Proceedings, pp. 317-321.
11. Damanpour, F. (1987), “The adoption of technological, administrative and ancillary innovations: impact of organizational factors”, Journal of Management, Vol. 13 No.4, pp. 675-688.
12. Damanpour, F. (1990), “Innovation effectiveness, adoption and organizational performance”, in Ed. West, M.A. and Ed. Farr, J.L. (Eds), Innovation and Creativity at Work, John Wiley & Sons, Chichester, pp. 125-141.
13. Damanpour, F. (1991), “Organizational innovation: a meta-analysis of effects of determinants and moderators”, Academy of Management Journal, Vol. 34 No.3, pp. 555-590.
14. Damanpour, F. (1996), “Organizational complexity and innovation: developing and testing multiple contingency models”, Management Science, Vol. 42, pp. 693-716.
15. Damanpour, F. and Evan, W.M. (1984), “Organizational innovation and performance: the problem of organizational lag”, Administrative Science Quarterly, Vol. 29 No.3, pp. 392-409.
16. Delaney, J.T. and Huselid, M.A. (1996), “The impact of human resource management practices on perceptions of organizational performance”, Academy of Management Journal, Vol. 39 No. 4, pp. 949-969.
17. Deowar, R.D. and Dutton, J.E. (1986), “The adoption of radical and incremental innovations: an empirical analysis”, Management Science, Vol. 32 No. 11, pp. 1422-33.
18. Dodgson, M. (1993), Technological Collaboration in Industry: Strategy, Policy and Internationalisation in Innovation, Routledge, London.
19. Drejer, A. (2002), “Situations for innovation management: towards a contingency model”, European Journal of Innovation Management, Vol. 55 No. 1, pp. 4-17.
20. Drucker, P.F. (1998), “The discipline of innovation”, Harvard Business Review, Vol. 76 No. 6, pp. 149-157.
21. Eppink, D.J. (1997), “Strategic innovation”, in Ed. Hussey, D.E. (Ed.), The Innovation Challenge, John Wiley & Sons, Chichester, pp. 17-23.
22. Ettlie, J.E., Bridges, W.P. and O’Keefe, R.D. (1984), “Organization strategy and structural differences for radical versus incremental innovation”, Management Science, Vol. 30 No. 6, pp. 682-695.
23. Foster, R.N. (1986), Innovation, the Attacker's Advantage, Summit, New York, NY.
24. Freel, M.S. and Robson, P.A. (2004), “Small firm innovation, growth and performance”, International Small Business Journal, Vol. 22 No. 6, pp. 561-575.
25. Frey, J.H. (1989), Survey Research by Telephone, 2nd ed., Sage, Newbury Park, CA.
26. Garcia, R. and Calantone, R. (2002), “A critical look at technological innovation typology and innovativeness terminology: a literature review”, The Journal of Product Innovation Management, Vol. 19 No. 2, pp. 110-132.
27. Garvin, D.A. (1983), “Spin-off and the new firm formation process”, California Management Review, Vol. 25 No. 2, pp. 3-20.
28. Gaynor, G.H. (2002), Innovation by Design: What it Takes to Keep Your Company on The Cutting Edge, AMACOM American management association, New York, NY.
29. Groves, R.M., Biemer, P.P. Lyberg, L.E. Massey, J.T. Nicholls, W.L. and Waksberg, J., (1988), Telephone Survey Methodology, John Wiley & Sons, New York, NY.
30. Hamdouch, A. and Samuelides, E. (2001), “Innovation's dynamics in mobile phone services in France”, European Journal of Innovation Management, Vol. 4 No. 3, pp. 153-162.
31. Han, J.K., Kim, N. and Srivastava, R.K. (1998), “Market orientation and organizational performance: is innovation a missing link?”, Journal of Marketing, Vol. 62 No. 4, pp. 30-45.
32. Hanna, M.T. and Freeman, J. (1984), “Structural inertia and organizational change”, American Sociological Review, Vol. 49, pp. 149-164.
33. Hanna, M.T. and Freeman, J. (1989), Organizational Ecology, Harvard University Press, Cambridge, MA.
34. Hargadon, A. and Sutton, R.I. (2000), “Building an innovation factory”, Harvard Business Review, Vol. 78 No. 3, pp. 157-166.
35. Huang, X., Soutar, G.N. and Brown, A. (2002), “New product development processes in small and medium-sized enterprises: some Australian evidence”, Journal of Small Business Management, Vol. 40 No. 1, pp. 27-42.
36. Hurley, R.F. and Hult, T.M. (1998), “Innovation, market orientation, and organizational learning: an integration and empirical examination”, Journal of Marketing, Vol. 62, pp. 42-54.
37. Huselid, M.A. (1995), “The impact of human resource management practices on turnover, productivity, and corporate financial performance”, Academy of Management Journal, Vol. 38 No. 3, pp. 635-672.
38. Hussey, D.E. (1997), “Creativity, innovation and strategy”, in Ed. Hussey, D.E. (Ed.), The Innovation Challenge, John Wiley & Sons, Chichester, pp. 1-15.
39. James, W.M. (2002), “Best HR practices for today's innovation management”, Research Technology Management, Vol. 45 No. 1, pp. 57-60.
40. Johannessen, J., Olsen, B. and Lumpkin, G.T. (2001), “Innovation as newness: what is new, how new, and new to whom?”, European Journal of Innovation Management, Vol. 4 No. 1, pp. 20-31.
41. Johne, A. and Davies, R. (2000), “Innovation in medium-sized insurance companies: how marketing adds value”, International Journal of Bank Marketing, Vol. 18 No. 1, pp. 6-14.
42. Kalleberg, A.L. and Leicht, K.T. (1991), “Gender and organizational performance: determinants of small business survival and success”, Academy of Management Journal, Vol. 34 No. 1, pp. 136-161.
43. King, N. (1990), “Innovation at work: the research literature”, in Ed. West, M.A. and Ed. Farr, J.L. (Eds), Innovation and Creativity at Work, John Wiley & Sons, Chichester, pp. 15-59.
44. Lavrakas, P.J. (1993), Telephone Survey Methods: Sampling, Selection, and Supervision, Sage Publications, Inc., Newbury Park.
45. Leifer, R., O’ Connor, G.C. and Rice, M. (2001), “Implementing radical innovation in mature firms: the role of hubs”, Academy of Management Executive, Vol. 15 No. 3, pp. 102-113.
46. Li, H. and Atuagene-Gima, K. (2001), “Product innovation strategy and the performance of new technology ventures in China”, Academy of Management Journal, Vol. 44 No. 6, pp. 1123-34.
47. Lin, Y.Y. and Zhang, J. (2005), “A changing structure of SME networking: publishing industry in Taiwan”, Long Range Planning, Vol. 38, pp. 145-162.
48. McDermott, B. and Sexton, G. (1998), “Sowing the seeds of corporate innovation”, The Journal for Quality & Participation, Vol. 21 No. 6, pp. 18-23.
49. Maravelakis, E., Bilalis, N. Antoniadis, A. Jones, K.A. and Moustakis, V. (2006), “Measuring and benchmarking the innovativeness of SMEs: a three-dimensional fuzzy logic approach”, Production Planning & Control, Vol. 17 No. 3, pp. 283-292.
50. Markides, C. (1997), “Strategic Innovation”, MIT Sloan Management Review, Vol. 38 No. 3, pp. 9-23.
51. Miller, W.L. (2001), “Innovation for business growth”, Research Technology Management, Vol. 44 No. 5, pp. 26-41.
52. Motwani, J. (1999), “Managing innovation in French small and medium-sized enterprises”, Journal of Small Business Management, Vol. 37 No. 2, pp. 106-114.
53. Mytelka, L. and Barclay, L.A. (2004), “Using foreign investment strategically for innovation”, The European Journal of Development Research, Vol. 16 No. 3, pp. 531-560.
54. Nord, W.R. and Tucker, S. (1987), Implementing Routine and Radical Innovations, Lexington Books, Lexington, MA.
55. O’Neill, H.M., Pouder, R.W. and Buchholtz, A.K. (1998), “Patterns of diffusion of strategies across organizations: insights from the innovation diffusion literature”, Academy of Management Review, Vol. 23 No. 1, pp. 98-114.
56. Petit, M.L. and Sanna-Randaccio, F. (1998), “Technological innovation and multinational expansion: a two-way link?”, Journal of Economics, Vol. 67 No. 1, pp. 1-26.
57. Porter, M.E. and Stern, S. (2001), “Innovation: location matters”, MIT Sloan Management Review, Vol. 42 No. 4, pp. 28-36.
58. Pratali, P. (2003), “Strategic management of technological innovations in the small to medium enterprise”, European Journal of Innovation Management, Vol. 6 No. 1, pp. 18-31.
59. Ravichandran, T. (2000), “Swiftness and intensity of administrative innovation adoption: an empirical study of TQM in information systems”, Decision Sciences, Vol. 31 No. 3, pp. 691-724.
60. Roper, S. (1997), “Product innovation and small business growth: a comparison of the strategies of German, UK and Irish companies”, Small Business Economics, Vol. 9 No. 6, pp. 523-537.
61. Roper, S. and Love, J.H. (2002), “Innovation and export performance: evidence from the UK and German manufacturing plants”, Research Policy, Vol. 31 No. 7, pp. 1087-102.
62. Rothwell, R. (1989), “Small firms, innovation and industrial change”, Small Business Economics, Vol. 1 No. 1, pp. 51-64.
63. Smith, K.G., Guthrie, J.P. and Chen, M.J. (1986), “Miles and snow's typology of strategy, organizational size, and organizational performance”, Academy of Management Proceedings, pp. 45-49.
64. Soderquist, K. (1996), “Managing innovation in SMES: a comparison of companies in the UK, France and Portugal”, International Journal of Technology Management, Vol. 12 No. 3, pp. 291-305.
65. Sorensen, J.B., and Stuart, T.E. (2000), “Aging, obsolescence, and organizational innovation”, Administrative Science Quarterly, Vol. 45 No. 1, pp. 81-112.
66. Statistical Yearbook of the Republic of China (2003), Directorate General of Budget, Taipei, Accounting and Statistics, Executive Yuan, Taiwan (in Chinese).
67. Stringer, R. (2000), “How to manage radical innovation”, California Management Review, Vol. 42 No. 4, pp. 70-88.
68. Terziovski, M. (2000), “Achieving performance excellence through an integrated strategy of radical innovation and continuous improvement”, Measuring Business Excellence, Vol. 6 No. 2, pp. 5-14.
69. The Industrial and Development and Investment Center, Ministry of Economic Affairs (2004), “Taiwan enjoys fourth highest number of US patents in 2003”, (in Chinese), available at: //investintaiwan.nat.gov.tw/en/news/200406/2004062501.htm> (accessed 19 March 2005).
70. Trott, P. (1998), Innovation Management and New Product Development, Pitman Publishing, London.
71. Turock, A. (2001), “Strategic innovation”, Executive Excellence, Vol. 19 No. 9, pp. 9-10.
72. Urabe, K., Child, J. and Kagono, T. (Eds) (1988), Innovation and Management: International Comparisons, Walter de Gruyter & Co., Berlin.
73. Vrakking, W.J., and Cozijnsen, A.J. (1997), “Monitoring the quality of innovation processes and innovation successes”, in Ed. Hassey, D.E. (Ed.), The Innovation Challenge, John Wiley & Sons, Chichester, pp. 25-49.
74. Walker, R.M. (2005), “Innovation and organizational performance: a critical review of the evidence and a research agenda”, Academy of Management Best Conference Paper 2005, PNP: B1-B6.
75. West, M.A. and Farr, J.L. (1990), “Innovation at work”, in Ed. Wast, M.A. and Ed. Farr, J.L. (Eds), Innovation and Creativity at Work, John Wiley & Sons, Chichester. pp. 3-13.
76. White Paper Book: Small and Medium Enterprises in Taiwan (2000), Taipei: Taiwan Medium and Small Business Administration, Ministry of Economic Affairs, Taiwan (in Chinese).
77. White Paper Book: Small and Medium Enterprises in Taiwan (2001), Taipei: Taiwan Medium and Small Business Administration, Ministry of Economic Affairs, Taiwan (in Chinese).
78. White Paper Book: Small and Medium Enterprises in Taiwan (2005), Taipei: Taiwan Medium and Small Business Administration, Ministry of Economic Affairs, Taiwan (in Chinese).
79. Wolff, J.A. and Pett, T.L. (2004), “Small-firm performance: modeling the role of product and process improvements”, Journal of Small Business Management, Vol. 44 No. 2, pp. 268-284.
80. Zaltman, G., Duncan, R. and Holbek, J. (1973), Innovations and Organizations, John Wiley & Sons, London.
81. Daniel, E. and Tomkin, N. (1999), “Firm-level benefits of radical innovation”, Journal of General Management, Vol. 24 No.4, pp. 38-52.
82. Nohria, N. and Gulati, R. (1996), “Is slack good or bad for innovation?”, Academy of Management Journal, Vol. 39 No. 5, pp. 1245-64.
83. Salavou, H., Baltas, G. and Lioukas, S. (2004), “Organizational innovation in SMEs: the importance of strategic orientation and competitive structure”, European Journal of Marketing, Vol. 38 No. 9 / 10, pp. 1091-112.
84. Wu, M.L. (1999), Statistics Application of SPSS, UNALIA, Taipei (in Chinese).