Small and medium-sized enterprises (SME) are tasked with driving economic recovery globally, in terms of contribution to economic growth. Understanding the determinants of SME innovation is essential in clarifying this phenomena. This study investigates the link between SME strategies and intention to undertake future innovation, using Federation of Small Businesses data. The analysis employs the novel N-State Classification and Ranking Belief Simplex (NCaRBS) technique, investigating relationships between changes in SME strategies, including staffing levels, importing/exporting and client base, and future (including uncertain) innovation intentions. NCaRBS can analyse an incomplete data set, with missing values in the considered characteristic variables, without the need to manage their presence. NCaRBS can also generate results providing insights into SME behaviour regarding strategy and innovation, while also increasing learning about potential reasons behind SMEs uncertainty regarding innovation intention. The study provides novel perspectives into how SMEs develop innovation intentions and the strategies required to support/exploit such intentions, of value to academia, enterprise support agencies and policymakers.
AkgünAEKeskinHByrneJC, et al. (2007) Emotional and learning capability and their impact on product innovativeness and firm performance. Technovation27(9): 501–513.
2.
AllenKStearnsT (2004) Technology entrepreneurs. In: GartnerWBShaverKGCarterNM, et al. (eds) Handbook of Entrepreneurial Dynamics: The Process of Business Creation. Thousand Oaks: Sage, pp. 438–448.
3.
AntonioliDDella TorreE (2016) Innovation adoption and training activities in SMEs. The International Journal of Human Resource Management37(3): 311–337.
4.
Appiah-AduKSinghS (1998) Customer orientation and performance: a study of SMEs. Management Decision36(6): 385–394.
5.
Aragón-SánchezABarba-AragonISanz-ValleR (2003) Effects of training on business results. International Journal of Human Resource Management14(6): 956–980.
6.
ArshedNMasonCCarterS (2016) A case of enterprise policy in England. Environment and Planning C: Government and Policy34(8): 1582–1611.
7.
Atuahene–GimaKLiH (2000) Marketing’s influence tactics in new product development: a study of high technology firms in China. Journal of Product Innovation Management17(6): 451–470.
8.
BaldwinJRHanelP (2003) Innovation and Knowledge Creation in an Open Economy: Canadian Industry and International Implications. Cambridge: Cambridge University Press.
9.
BertschekIEntorfH (1996) On nonparametric estimation of the Schumpeterian link between innovation and firm size: evidence from Belgium, France and Germany. Empirical Economics21(3): 401–426.
10.
BeynonMJ (2005a) A novel technique of object ranking and classification under ignorance: an application to the corporate failure risk problem. European Journal of Operational Research167: 493–517.
11.
BeynonMJ (2005b) Optimizing object classification under ambiguity/ignorance: application to the credit rating problem. International Journal of Intelligent Systems in Accounting, Finance and Management13: 113–130.
12.
BeynonMJAndrewsRABoyneG (2015a) Evidence-based modelling of hybrid organizational strategies. Computational and Mathematical Organization Theory21: 1–23.
13.
BeynonMJJonesPPackhamG, et al. (2014) Investigating the motivation for enterprise education: a CaRBS based exposition. International Journal of Entrepreneurial Behaviour and Research20(6): 584–612.
14.
BeynonMJJonesPPickernellD, et al. (2015b) A NCaRBS analysis of SME intended innovation: learning about the Don’t Knows. OMEGA - International Journal of Management Science59(Part A): 97–112.
15.
BeynonMJJonesPPickernellD (2016) Country-based comparison analysis using fsQCA investigating entrepreneurial attitudes and activity. Journal of Business Research69(4): 1271–1276.
16.
BeynonMJKitchenerM (2006) Analyzing strategic stance in public services management: an exposition of NCaRBS in a study of U.S. states’ long-term care systems. In: VogesKEPopeNLlK (eds) Business Applications and Computational Intelligence. Hershey: IDEA Group, Chapter 17, pp. 344–359.
17.
BougrainFHaudevilleB (2002) Innovation, collaboration and SMEs internal research capacities. Research Policy31: 735–747.
18.
BraunerhjelmPAcsZJAudretschDB, et al. (2010) The missing link: knowledge diffusion and entrepreneurship in endogenous growth. Small Business Economics34(2): 105–125.
19.
CarterSMasonCTaggS (2009) Perceptions and experience of employment regulation in UK small firms. Environment and Planning C: Government and Policy27: 263–278.
20.
CeciFIubattiD (2012) Personal relationships and innovation diffusion in SME networks: a content analysis approach. Research Policy41(3): 565–579.
21.
CohenWMKlepperS (1996) Firm size and the nature of innovation within industries: the case of process and product R&D. The Review of Economics and Statistics78: 323–343.
22.
DanielEWilsonH (2002) Adoption intentions and benefits realised: a study of e-commerce in UK SMEs. Journal of Small Business and Enterprise Development9(4): 331–348.
23.
DavidssonPDelmarF (1997) High-growth firms: characteristics, job contribution, and method observations. Paper presented at the RENT XI Conference, Mannheim, Germany.
24.
De ProprisL (2002) Types of innovation and inter-firm co-operation. Entrepreneurship and Regional Development14: 337–353.
25.
De Saá-PérezPDíaz-DíazNLLuis Ballesteros-RodriguezJ (2012) The role of training to innovate in SMEs. Innovation14(2): 218–230.
26.
DibrellCDavisPSCraigJ (2008) Fueling innovation through information technology in SMEs. Journal of Small Business Management46(2): 203–218.
27.
DobbsMHamiltonRT (2007) Small business growth: recent evidence and new directions. International Journal of Entrepreneurial Behavior & Research13(5): 296–322.
28.
DollingerM (1995) Entrepreneurship: Strategies and Resources. Boston: Irwin.
29.
EdwardsTDelbridgeRMundayM (2005) Understanding innovation in small and medium-sized enterprises: a process manifest. Technovation25(10): 1119–1127.
30.
EggersFHatakIKrausS, et al. (2017) Technologies that support marketing and market development in SMEs – evidence from social networks. Journal of Small Business Management55(2): 270–302.
31.
EttlieJERubensteinAH (1987) Firm size and product innovation. Journal of Product Innovation Management4(2): 89–108.
Federation of Small Businesses (FSB) (2010). Lifting the Barriers to Growth in UK Small Businesses. London: Federation of Small Businesses.
34.
FinkDDistererG (2006) International case studies: To what extent is ICT infused into the operations of SMEs?Journal of Enterprise Information Management19(6): 608–624.
35.
Foreman-PeckJMakepeaceGMorganB (2006) Growth and profitability of small and medium-sized enterprises: some Welsh evidence. Regional Studies40(4): 307–319.
36.
FrancisJDBuschL (1975) What we now know about “I Don’t Knows.”The Public Opinion Quarterly39(2): 207–218.
37.
GalindoMAMéndezMT (2014) Entrepreneurship, economic growth, and innovation: Are feedback effects at work?Journal of Business Research67(5): 825–829.
38.
Garcıa-MoralesVJLlorens-MontesaFJVerdu-JoverAJ (2007) Influence of personal mastery on organizational performance through organizational learning and innovation in large firms and SMEs. Technovation27(9): 547–568.
39.
GilljamMGranbergD (1993) Should we take don’t know for an answer?Public Opinion Quarterly57: 348–357.
40.
GirmaSGörgHHanleyA (2008) R&D and exporting: A comparison of British and Irish firms. Review of World Economics144(4): 750–773.
41.
GriffithRReddingSVan ReenenJ (2003) R&D and absorptive capacity: theory and empirical evidence. The Scandinavian Journal of Economics105(1): 99–118.
42.
GroothuisPAWhiteheadJC (2002) Does don’t know mean no? Analysis of ‘don’t know’ responses in dichotomous choice contingent valuation questions. Applied Economics34(15): 1935–1940.
43.
HallBHLottiFMairesseJ (2009) Innovation and productivity in SMEs: empirical evidence for Italy. Small Business Economics33(1): 13–33.
44.
HarrisRMcAdamRMcCauslandI, et al. (2013) Knowledge management as a source of innovation and competitive advantage for SMEs in peripheral regions. International Journal of Entrepreneurship and Innovation14(1): 49–61.
45.
HausmanA (2005) Innovativeness among small businesses: theory and propositions for future research. Industrial Marketing Management34(8): 773–782.
46.
HeimonenT (2012) What are the factors that affect innovation in growing SMEs?European Journal of Innovation Management15(1): 122–144.
47.
Hewitt-DundasN (2006) Resource and capability constraints to innovation in large and small plants. Small Business Economics26(3): 257–277.
48.
HigónDA (2012) The impact of ICT on innovation activities: evidence for UK SMEs. International Small Business Journal30(6): 684–699.
49.
HigónDADriffieldN (2011) Exporting and innovation performance: analysis of the annual small business survey in the UK. International Small Business Journal29(1): 4–24.
50.
HoffmanKParejoMBessantJ, et al. (1998) Small firms, R&D, technology and innovation in the UK: a literature review. Technovation18(1): 39–55.
51.
HudsonMSmartABourneM (2001) Theory and practice in SME performance measurement systems. International Journal of Operations & Production Management21(8): 1096–1115.
52.
JayawarnaDMacphersonAWilsonA (2007) Training commitment and performance in manufacturing SMEs: incidence, intensity and approaches. Journal of Small Business and Enterprise Development14(2): 321–338.
53.
JonesPBeynonMJPickernellD, et al. (2013) Evaluating the impact of different training methods on SME business performance. Environment and Planning C: Government and Policy31(1): 56–81.
54.
KeizerJADijkstraLHalmanJ (2002) Explaining innovative efforts of SMEs: an exploratory survey among SMEs in the mechanical and electrical engineering sector in The Netherlands. Technovation22(1): 1–13.
55.
KeskinH (2006) Market orientation, learning orientation, and innovation capabilities in SMEs: an extended model. European Journal of Innovation Management9(4): 396–417.
56.
KocakAAbimbolaT (2009) The effects of entrepreneurial marketing on born global performance. International Marketing Review26(4/5): 439–452.
57.
KunduSKKatzJA (2003) Born-international SMEs: BI-level impacts of resources and intentions. Small Business Economics20(1): 25–47.
58.
LaforetS (2008) Size, strategic, and market orientation effects on innovation. Journal of Business Research61(7): 753–764.
59.
LazoiMCeciFCoralloA, et al. (2011) Collaboration in an aerospace SMEs cluster: innovation and ICT dynamics. International Journal of Innovation and Technology Management8(3): 393–414.
60.
LeeSParkGYoonB, et al. (2010) Open innovation in SMEs – an intermediated network model. Research Policy39(2): 290–300.
61.
LinCYHoYH (2008) An empirical study on logistics service providers’ intention to adopt green innovations. Journal of Technology Management & Innovation3(1): 17–26.
62.
LoebbeckeCSchäferS (2001) Web portfolio based electronic commerce: the case of transtec AG. Logistics Information Management14(1/2): 54–67.
63.
LohrkeFTKreiserPMWeaverKM (2006) The influence of current firm performance on future SME alliance formation intentions: a six-country study. Journal of Business Research59(1): 19–27.
64.
LoveJHRoperS (2015) SME innovation, exporting and growth: a review of existing evidence. International Small Business Journal33(1): 28–48.
65.
McAdamRMcConveryTArmstrongG (2004) Barriers to innovation within small firms in a peripheral location. International Journal of Entrepreneurial Behaviour & Research10(3): 206–221.
66.
McCarthySPackhamGPickernellD (2014) The potential of and framework for promoting a business angel university and intellectual property exploitation: a case study from Wales. In: AlainFayolleDanaRedford (eds) Handbook on the Entrepreneurial University. Cheltenham, UK: Edward Elgar, p.323.
67.
MacDonaldSAssimakopoulosDAndersonP (2007) Education and training for innovation in SMEs: a tale of exploitation. International Small Business Journal25(1): 77–95.
68.
MasonCBrownR (2013) Creating good public policy to support high-growth firms. Small Business Economics40(2): 211–225.
69.
MasonCCarterSTaggS (2006) The effect of the national minimum wage on the UK small business sector: a geographical analysis. Environment and Planning C: Government and Policy24(1): 99–116.
70.
MasonCCarterSTaggS (2011) Invisible businesses: the characteristics of home-based businesses in the United Kingdom. Regional Studies45(5): 625–639.
71.
MorenoAMCasillasJC (2007) High-growth SMEs versus non-high-growth SMEs: a discriminant analysis. Entrepreneurship & Regional Development19(1): 69–88.
72.
MorrisMHPaulGW (1987) The relationship between entrepreneurship and marketing in established firms. Journal of Business Venturing2(3): 247–259.
73.
MorrisonABreenJAliS (2003) Small business growth: intention, ability, and opportunity. Journal of Small Business Management41(4): 417–425.
74.
MuscioA (2007) The impact of absorptive capacity on SMEs’ collaboration. Economics of Innovation and New Technology16(8): 653–668.
75.
O’GormanC (2001) The sustainability of growth in small- and medium-sized enterprises. International Journal of Entrepreneurship Behaviour & Research7(2): 60–75.
76.
O’ReganNGhobadianASimsM (2006) Fast tracking innovation in manufacturing SMEs. Technovation26(2): 251–261.
77.
PellegrinoGPivaMVivarelliM (2012) Young firms and innovation: a microeconometric analysis. Structural Change and Economic Dynamics23(4): 329–340.
78.
PetersenKJHandfieldRBRagatzGL (2003) A model of supplier integration into new product development. Journal of Product Innovation Management20(4): 284–299.
79.
PickernellDJonesPThompsonP, et al. (2016) Determinants of SME exporting: insights and implications. The International Journal of Entrepreneurship and Innovation17(1): 31–42.
80.
PickernellDKayAPackhamG, et al. (2011a) Competing agendas in public procurement: an empirical analysis of opportunities and limits in the UK for SMEs. Environment and Planning C: Government and Policy29(4): 641–658.
81.
PickernellDPackhamGJonesP, et al. (2011b) Graduate entrepreneurs are different: they access more resources. International Journal of Entrepreneurial Behaviour & Research17(2): 183–202.
82.
PickernellDSenyardJJonesP, et al. (2013) New and young firms entrepreneurship policy and the role of government – evidence from the Federation of Small Businesses survey. Journal of Small Business and Enterprise Development20(2): 358–382.
83.
Pla-BarberJAlegreJ (2007) Analysing the link between export intensity, innovation and firm size in a science-based industry. International Business Review16(3): 275–293.
84.
RaymondLSt-PierreJ (2010) R&D as a determinant of innovation in manufacturing SMEs: an attempt at empirical clarification. Technovation30(1): 48–56.
85.
RoperS (1997) Product innovation and small business growth: a comparison of the strategies of German, UK and German Companies. Small Business Economics9(6): 523–537.
86.
SalomonRMShaverJM (2005) Learning by exporting: new insights from examining firm innovation. Journal of Economics & Management Strategy14(2): 431–460.
87.
SawyerOMcGeeIPetersonM (2003) Perceived uncertainty and firm performance in SMEs. International Small Business Journal21(3): 269–284.
88.
SchumpeterJ (1942) Capitalism, Socialism and Democracy. New York: Harper.
89.
SheehanMGaravanTNCarberyR (2014) Innovation and human resource development (HRD). European Journal of Training and Development38(1/2): 2–14.
90.
Sin TanKChoy ChongSLinB, et al. (2010) Internet-based ICT adoption among SMEs: demographic versus benefits, barriers, and adoption intention. Journal of Enterprise Information Management23(1): 27–55.
91.
SimmondsK (1986) Marketing as Innovation the eighth paradigm. Journal of Management Studies23(5): 479–500.
92.
SimmonsGArmstrongGDurkinM (2011) An exploration of small business website optimization: enablers, influencers and an assessment approach. International Small Business Journal29(5): 534–561.
93.
SimpsonMDochertyAJ (2004) E-commerce adoption support and advice for UK SMEs. Journal of Small Business and Enterprise Development11(3): 315–328.
94.
SkurasDTsegenidiKTsekourasK (2008) Product innovation and the decision to invest in fixed capital assets: evidence from an SME survey in six European Union member states. Research Policy37(10): 1778–1789.
95.
SmallboneDBaldockRBurgessS (2002) Targeted support for high-growth start-ups: some policy issues. Environment and Planning C: Government and Policy20(2): 195–209.
96.
ThakurS (1999) Size of investment, opportunity choice and human resources in new venture growth. Journal of Business Venturing14(3): 283–309.
97.
TomlinsonPRFaiFM (2013) The nature of SME co-operation and innovation: a multi-scalar and multi-dimensional analysis. International Journal of Production Economics141(1): 316–326.
98.
TurnerJMichaelM (1996) What do we know about don’t knows? Or, contexts of ‘ignorance’. Social Science Information35(1): 15–37.
99.
UhlanerLMvan StelADuplatV, et al. (2013) Disentangling the effects of organizational capabilities, innovation and firm size on SME sales growth. Small Business Economics41(3): 581–607.
100.
UnsworthKSawangSMurrayJ, et al. (2012) Understanding innovation adoption: effects of orientation, pressure and control on adoption intentions. International Journal of Innovation Management16(1): 1250004.
101.
Van de VrandeVde JongJPJVanhaverbekeW, et al. (2009) Open innovation in SMEs: trends, motives and management challenges. Technovation29(6): 423–437.
