Top PDF The effects of knowledge management and ict in innovation and performance of SMEs: an empirical study

The effects of knowledge management and ict in innovation and performance of SMEs: an empirical study

The effects of knowledge management and ict in innovation and performance of SMEs: an empirical study

131 The second objective considered in the research has been to analyze the effect of ICT, on KM and business growth. And turn to examine the role of the KM on business growth in the field of SMEs. The results show that ICTs significantly influence KM practices and revenue growth (sales). In this same direction, the KM shows that it has positive and significant effects on the increase of the SMEs' income. The main contributions generated by the use of ICTs in SMEs are: 1) Improve human capital competencies; 2) Support in the communication of strategies and policies; 3) Promote organizational culture and collaborative work (Battistella et al., 2015; Tseng, 2008), and 4. It is an excellent means of acquiring knowledge (internal and external), which generates a strong competitive advantage (Andersen, 2015, Wong & Aspinwall, 2005). However, there was no empirical evidence of the effect of ICT and KM on the growth of SME employees. The traditional business model (capitalist approach) has provided important benefits to SMEs, but has also generated constraints that prevent it from developing and continue to grow in competitive environments (Teece, 2007, 2010). Current economic conditions and turbulent financial environments have led organizations to focus on short-term economic outcomes (Dallago et al., 2012, Madrid- Guijarro et al., 2016). These common practices in SMEs have led to the neglect of the development of human resources (Bratton & Gold, 2012). In addition, the organization with a vertical direction has meant that the developments of human capital competencies are not significant (Nonaka et al., 2014). The lack of preparation of human resources through new technologies is an important issue for SMEs, which is affecting the results that are not significant (Chhabra, 2012; Guthrie, Ricceri, & Dumay, 2012). The lack of financial capital, the scarce investment in infrastructure and technological tools for learning and the short strategic vision, have been the factor that influences the growth of human resources capacities in the SME (Durst et al., 2013; Flagg et al., 2013). The third objective of the research is focused on the analysis of the effects of ICT on KM, innovation and SME performance. Second, the importance of KM practices on innovation and IP is analyzed. The third is the impact of innovation and IP management on performance. In addition to review the effect of innovation on IP in the field of SME.
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Effects of intellectual capital and university knowledge on indigenous innovation: evidence from Indian SMEs

Effects of intellectual capital and university knowledge on indigenous innovation: evidence from Indian SMEs

3 2008; Mathur, Mittal, and Dangayach 2012). Innovation is a challenge for Indian SMEs because they typically lack capabilities, resources, knowledge, and expertise (Thakkar, Kanda, and Deshmukh 2013; Garengo and Sharma 2014). Therefore, how to manage and leverage internal and external knowledge to innovate becomes a critical challenge faced by Indian SEMs (Alexander and Childe 2013; Thakkar, Kanda, and Deshmukh 2013; Liu et al. 2014). In addition, Indian SMEs have to manage knowledge and innovate in fast changing market and technological environments and underdeveloped institutional contexts, which is another challenge for them to tackle (Kozhikode and Li 2012; World Bank 2015). The objective of this study is to explore empirically the impacts of intellectual capital and university knowledge on indigenous innovation and how environmental conditions affect these relationships. This study addresses three research questions. First, how do intellectual capital and university knowledge jointly affect indigenous innovation? Second, what is the effect of indigenous innovation on business performance? Third, how do dysfunctional competition and environmental uncertainty influence such effects? The findings provide empirical evidence that Indian SMEs can gain competitive advantages through indigenous innovation. We also find that intellectual capital and university knowledge increase indigenous innovation both individually and interactively, which can help Indian SMEs to improve the effectiveness of knowledge management. The results of the moderating effects of dysfunctional competition and environmental uncertainty can provide guidelines for Indian SMEs to optimise knowledge management and innovation decisions according to business and institutional environments.
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The Effect of ISO Environmental Management System Implementation on SMEs Performance: An Empirical Study in Malaysia

The Effect of ISO Environmental Management System Implementation on SMEs Performance: An Empirical Study in Malaysia

In this study, it can be conclude that ISO 14001 EMS implementation has a positive and significant relationship with SMEs’s performance (i.e. operation performance and business performance). These findings are distinctively important as it is solely based in Malaysia context which are different from previous study that focus mainly on developed countries. In addition, the findings will be very helpful where publicity and promotion regarding the positive significant effects towards firm’s performance can be made available to all the SMEs, such as through the cooperation with Small and Medium Enterprise (SME) Corporation Malaysia, Federation of Malaysian Manufacturers (FMM) and Standard and Industrial Research Institute of Malaysia (SIRIM) Berhad to encourage other SMEs to join in the bandwagon. Lastly, it is recommended that the validated framework be replicated in other sector, industries or other countries with large sample size which would provide further validation and reinforcement to the framework from this study. ISO 14001 EMS implementation has been adopted by many industries in different countries. In Malaysia, the adoption can be identified typically in the manufacturing sector and some in service sector (i.e. hotel industry). It is recommended to extend the framework to other industry such as the education industry (e.g. public or private academic institutions). References
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Balanced Scorecard in SMEs: Effects on innovation and financial performance

Balanced Scorecard in SMEs: Effects on innovation and financial performance

8 Volery et al. 2015), are already deeply involved in the organizational processes and consequently might not benefit as much as managers of large firms from the learning experience that might arise from the evaluation of formal BSC. Additionally, exploratory initiatives in SMEs are mostly carried out by a rather informal learning-by-doing process; there is less focus on R&D, or even a rather non-R&D-oriented process (Hervas-Oliver et al. 2016). Its flexible structures permit spontaneous discussions and experimentation. Shorter lines of interaction within the firm make the dissemination of tacit knowledge easier in small firms than it is in larger firms (Koskinen and Vanharanta 2002). The use of BSC as a formal managerial practice could easily be confounded by firm participants as another layer of control in SMEs, weakening the flexible communication and control structures that are already in place. Finally, limited resources – in terms of time management and human resources – do not allow managers and subordinates to use formal performance evaluation meetings to deeply scan the external environment to explore new opportunities beyond existing products, markets and customers. In this vein, field study and interviews conducted by Ates et al. (2013) concluded that performance management processes in SMEs are particularly narrow and dedicate the most attention to short-term financial and operational activities, failing to identify and scan external factors that might affect their business. In brief, we predict that the attributes of the use of BSC that stimulate exploratory innovation in large firms are not similarly beneficial to SMEs. Thus,
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THE ROLE OF PSYCHOLOGICAL EMPOWERMENT AND INNOVATION ON FIRM PERFORMANCE: AN EMPIRICAL STUDY OF SMEs IN SAUDI ARABIA

THE ROLE OF PSYCHOLOGICAL EMPOWERMENT AND INNOVATION ON FIRM PERFORMANCE: AN EMPIRICAL STUDY OF SMEs IN SAUDI ARABIA

Researchers and practitioners are seeking to investigate how innovations can be disseminated among different adopting units, why some organizations are more innovative than others (Hashem & Tann, 2007). The innovation gap call a proactive strategy implies the constant search for and introducing of new ideas, products, services, systems, policies, programs and processes before other firms in the environment (Montes et al. 2005). In a competitive environment, product and service innovation is necessary to surpass competitors in the degree to which the needs of customers are satisfied (Martinez-Costa & Martinez-Lorente, 2008). Since companies are facing a turbulent and rapidly changing environment, innovation has become a strategic tool for management. Therefore, innovation is a strategic option for responding to the new challenges of an environment subjected to change and uncertainty.
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Organizational Culture and Performance: An Empirical Study of SMEs in Pakistan

Organizational Culture and Performance: An Empirical Study of SMEs in Pakistan

But this process of improvement cannot be ushered in at once. It requires a great deal of understanding of internal systems and identification of key factors affecting performance in an enterprise. SMEs need to determine their source of competitive advantage. The success stories of reputed organizations reveal that sustained competitive advantage lies in continued internal innovation through a set of beliefs, values and shared norms in the organization. These beliefs, values and principles symbolize the culture of an organization (Morgan, 1997) and function as a source of management practices for the organization. It heavily influences decision making, policy formulation, leadership style and overall working environment within an organization (Hofstede & Hofstede, 2005). Strong cultural values promote innovation, internal flexibility, better utilization of human capital (Robbins, Judge, & Sanghi, 1994) and enduring strategic goals in an enterprise.
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PERFORMANCE MANAGEMENT THROUGH INNOVATION CAPABILITY IN SMES

PERFORMANCE MANAGEMENT THROUGH INNOVATION CAPABILITY IN SMES

There are some limitations to the study that should be acknowledged. The data used in the study were collected with subjective measures based on the perceptions of companies’ managers and employees. Although perceptual data are extensively used in business studies, there is a possibility that the subjectivity of the measures has biased the results of the study. In addition, a majority of the responses came from managers. Thus, managers’ opinions are emphasized in the results. Finally, the study is based on data from a single country. The specific country characteristics should be taken into account when the results are applied to practice or further studies. The sample covered a large portion of Finnish SMEs employing 11-249 people and having revenue of 2-50 million euros. The results can thus be considered to be generalized to SMEs at least in Finland. For further research, in-depth studies are needed to clarify how the SMEs use the performance measurement to manage performance through external knowledge. Regarding the other determinants of innovation capability, it would be interesting to discover whether the measurement is focussed more on the single determinants or on the process that transfers the innovation capability to firm performance. The presumption for further research can be that measurement can have positive effects when it has been conducted in a way that concurrently takes into account the determinants, process, and performance aspects of innovation capability. In this way, measurement could be considered a useful link for SMEs in their attempts to manage such a multifaceted construct as innovation capability, in order to achieve higher performance. Further research could also study the type of measurement and measures that are most effective when the relationship between innovation capability and performance are facilitated through measurement.
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Knowledge Transfer and Family Influence: Effects on Innovation and Performance

Knowledge Transfer and Family Influence: Effects on Innovation and Performance

As regards disadvantages, some believe that family businesses are inefficient when it comes to the ability to innovate (De Massis, Frattini & Lichtenthaler, 2012). Verganti (2009) and Tidd, Bessant & Pavitt (2005) have countered this view with successful cases such as the Italian family firms Alessi (a producer of kitchen utensils) and Benetton Group (Treviso-based global fashion brand), both of which have strongly anchored their competitive strategies in radical product innovation. But family-owned businesses often lack infrastructure capabilities such as technology or appropriate management techniques, weaknesses that can lead to inferior performance, and many of the resource constraints faced by SMEs are found in family firms (Astrachan, Zahra & Sharma 2003; Eddleston, Kellermanns & Sarathy 2008; Klein 2000).
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Entrepreneurship and Innovation Strategies in ICT SMEs in Enlarged Europe (EU25)

Entrepreneurship and Innovation Strategies in ICT SMEs in Enlarged Europe (EU25)

Parameter estimates of Model II suggest that educational attainment of the managing directors (MD_EDU ) and sales dynamics variables (SAL_DYN) were added in the list of significant determinants of type of innovation strategies followed by sample firms. Literature on growth of firms suggests that it is the academic background and qualification of managing directors that helps them understand the benefits of continuous innovation and globalization. Several earlier studies (Lal, 2002; Cohen, 1995) have also found the critical role being played by the knowledge base of entrepreneur in the performance of firms. Hence emergence of MD_EDU as a key determinant of innovation strategies is in line with the existing literature and is according to our expectation. Findings of the study that continuous innovating firms experienced better sales dynamics is as hypothesized. It seems that continuous innovating firms have been able to increase their sales turnover by targeting global markets. This might have been possible by manufacturing market-specific products. This could have been achieved by continuous innovations.
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Does Knowledge Stickiness Affect a Firm’s Innovation Capability? Empirical Evidence From Indonesian Furniture SMEs

Does Knowledge Stickiness Affect a Firm’s Innovation Capability? Empirical Evidence From Indonesian Furniture SMEs

In the knowledge management litera- ture, types of knowledge have been classi- fied in various ways. For instance, Polanyi (1962) has ‘traditionally’ classified knowledge into tacit and explicit knowledge, while Boisot (1995) has grouped it into coded and un- coded knowledge. The current study focuses on knowledge at the individual and organi- zational levels in the context of SMEs. Knowledge is embedded in the individual’s mind (e.g. Nonaka et al. 2000). Since a firm may be considered as a collection of people (Davenport and Prusak 1998) or as a collec- tion of humans as information-processing systems (Jorna 2006), knowledge of each in- dividual in an organization can be regarded as organizational knowledge (Nelson and Winter 1982). This line of reasoning implies a cognitive perspective on knowledge (Nooteboom 1996; Jorna 2006). Therefore, we have taken the cognitive perspective as our point of departure, using the types of knowledge as proposed by Cijsouw and Jorna (2003), namely sensory, coded, and theoreti- cal knowledge.
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An empirical investigation into the significance of intellectual capital and strategic orientations on innovation capability and firm performance in Malaysian information and communications technology (ICT) small-to-medium enterprises (SMEs).

An empirical investigation into the significance of intellectual capital and strategic orientations on innovation capability and firm performance in Malaysian information and communications technology (ICT) small-to-medium enterprises (SMEs).

Competitor orientation was found to have a positive but weak and insignificant effect in constituting market orientation (β=0.065, t=0.655, not significant) for the surveyed Malaysian ICT SMEs, indicating lack of influence on innovation capability. This result contradicts the literature on market orientation, where competitor orientation is posited as an essential factor of a market orientated firm (e.g., Kohli & Jaworski 1990; Narver & Slater 1990). However, results from the current study largely concur with the findings of other empirical research external to the marketing literature. For example, Han, Kim & Srivastava (1998) found that the relationship between competitor orientation and technical innovations as well as competitor orientation and administrative innovations were not statistically significant. It was also highlighted by Yang et al. (2012) that competitor orientation was found to be the least useful strategic orientation dimension as the effect of competitor orientation on innovation performance was insignificant for three out of four clusters they tested. They argued that competitor orientation was effective towards innovation performance only in an environment with low market growth and low competition which might be related to emerging or declining industry characteristics. Akman and Yilmaz (2008) further contend that competitor orientation does not influence innovation capability because the software firms they investigated generally worked together as partners rather than competing with each other as rivals. It could be argued that the insignificant contribution of competitor orientation in Malaysian ICT SMEs is due the fact that these firms emphasise providing services and customised solutions to address a customer’s specific needs. These customised solutions are the outcome of applied knowledge and skills that are difficult to acquire by competitors, unique and high in quality. Since services firms focus on customer contact, customisation and high interdependence between customers and the service provider, firms adopt less of a competitor orientation. Tan (2007), on investigating the Australian fast growth firms revealed that while the firms acknowledge their competitors, the firms themselves are not competitor oriented and do not emphasise to be better off than their competitors. Lukas and Ferrell (2000) put forward that focusing too much on competitor orientation stimulates product imitation and leads to negative impact on innovation.
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Knowledge Networks in Emerging ICT Regional Innovation Systems: An Explorative Study of the Knowledge Network of Trentino ICT Innovation System

Knowledge Networks in Emerging ICT Regional Innovation Systems: An Explorative Study of the Knowledge Network of Trentino ICT Innovation System

43 same system of representations or set of beliefs‖. Boschma (2005) defined organizational proximity as ―the extent to which relations are shared in an organizational arrangement, either within or between organizations‖. This definition involves the degree of autonomy and control of the organizational arrangements. Organizational proximity is assumed to help the knowledge exchange and reduce the transaction costs. However, too much organizational proximity may harm the interactive learning, as it constrains flexibility. Another way to define organizational proximity, which is used in this empirical research, is the level to which organizations are close in terms of routines and incentive mechanisms (Metcalfe, 1994). Usually, in innovation studies, there is a distinction between profit and non-profit organizations, or private and public (Cantner & Graf, 2006; Broekel & Boschma, 2012; Capaldo & Petruzzelli, 2014). This literature divides the organizations between profit (firms) and non-profit (universities, research centers, associations etc.). Alternatively, the organizational proximity can be measured in terms of subsidiaries of the same parent organization (Balland, 2012; Broekel & Graff, 2012; Balland et al, 2014; Broekel, 2015). This applies to large firms with sub-units and to universities and research centers with multiple institutes. The present research follows the first distinction but in a more detailed way in terms of organizational incentives. The profit organizations are distinguished in large firms and SMEs, while the non-profit organizations are distinguished in universities, research centers, public agencies, and other types of organizations. So, in line with the theory of organizational proximity, it is assumed that universities and research centers feel safer by creating strong ties between them, as the collaborations between them constitute a low-uncertainty and low-cost source of expertise and knowledge inside the region, leading to the following hypothesis:
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Knowledge management and academic performance:

An empirical study of Iraqi HEIs

Knowledge management and academic performance: An empirical study of Iraqi HEIs

Various studies have addressed KM processes with a view to identify the key aspects/dimensions of KM processes. These dimensions include acquisition, innovation, protection, integration, and dissemination (Lee & Yang, 2000); acquisition, conversion, application, and protection (Gold, Malhotra, & Segars, 2001); development, utilization, and capitalization (Kalling, 2003); creation, accumulation, sharing, utilization, and internalization (Lee, Lee & Kang, 2005); identification, collection, organizing, storage, sharing, and evaluation (Kiessling, Richey, Meng, & Dabic, 2009). An examination of these diverse views enables the researcher to group them into five processes: identification, acquisition, storage, sharing, and application. These five processes have received the most consensus attention in KM literature (Daud & Abdul Hamid, 2006; Goldet al., 2001; Kiessling et al., 2009; Lee & Yang, 2000; Liao & Wu, 2009).
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An empirical analysis of firm innovation capability and performance of Indonesian ICT SMEs

An empirical analysis of firm innovation capability and performance of Indonesian ICT SMEs

This thesis investigates the antecedents of innovation capability and firm performance of Indonesian information and communication technology (ICT) small-to-medium enterprises (SMEs). Literature on innovation management has documented that scholars who study factors that affect firms’ ability to innovate emphasise the impact of resources, capabilities and organisational management on innovation capability (e.g., Romijn & Albaladejo 2002; Hortinha, Lages, & Lages 2011; Zhou, Yim, & Tse 2005). However, studies on innovation capability seldom incorporate the role of interactions among organisations located in a geographical proximity in influencing or hindering the presence of innovation capability (Fitjar, Gjelsvik, & Rodriguez-Pose 2013). Scant attention has been paid to empirical studies of innovation capability that engage innovative milieu which is described as the formal and informal relationships among actors in a defined region that shape local innovation capability through synergy and localized learning (Camagni 1995). Although there has been a recent surge in studying firm-interrelatedness and interconnectedness in a defined region with Silicon Valley as an example, little is empirically known about the extent to which innovative milieu can enhance firm innovation capability and performance (Cantwell 2009), especially in an emerging economy. Therefore, this study engages innovative milieu to investigate antecedents of innovation capability and firm performance within an Indonesian context.
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THE RELATIONSHIP BETWEEN PERFORMANCE AND KNOWLEDGE MANAGEMENT IN ROMANIAN SMEs

THE RELATIONSHIP BETWEEN PERFORMANCE AND KNOWLEDGE MANAGEMENT IN ROMANIAN SMEs

The purpose of this paper is to identify if there is a relationship between performance and knowledge management in Romanian SMEs and which is the impact of knowledge management on SMEs performance. The study uses survey data from 1723 small and medium enterprises, which have been included in the study by the National Council of Private Small and Medium Enterprises in Romania in 2011. The results show that for most of the Romanian SMEs the concept of knowledge management is unknown. Also we observed that the performance of SMEs who know this concept are much better than those who do not know. This study allows managers and researchers to focus on main effects but leaves little room for understanding how particular resources relate to organizational performance.
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Knowledge Management, ICT and Innovation

Knowledge Management, ICT and Innovation

Various recent studies have explored the effect of information technology on organizational competitiveness. According to Rao, et al (2012), the information technology has related to the budget and finally competitiveness. Therefore, the utilization of ICT on management only efficient if the organization implements best practice of management concept (Wiig, 2012). In addition, there are many factors to explain the performance difference (Botha, et al, 2014). The study by Earl, et al (2012) showed that the use of technological process can boost performance including time efficiency and better decision making. However, (Rollet, 2012) argued that organizational practice of ICT toward innovation is unstable due to the executive turn over and finally innovation and ICT must be based on the political decision making between executives and employees (Holsapple, 2013). Even through many professional HR suggested that performance has related to technology and facilities, however, higher performance need higher productive knowledge to pace the innovation.
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Knowledge Sharing Process, Innovation Capability and Innovation Performance: An Empirical Study

Knowledge Sharing Process, Innovation Capability and Innovation Performance: An Empirical Study

Egbetokun et al., (2007) argued that there are various factors that could possibly contribute to the build-up of innovation capability. While innovation is a complex concept, research identifies five key areas of influence on an organisation's ability to innovate. These influences relate to leadership; opportunistic behaviour; culture and change; learning; and networking and relationship building. Factors internal to the firm include first of all, the knowledge and skills brought into the firm by the entrepreneur(s) and workforce, which they obtained through earlier experience (Egbetokun et al., 2007). Yang and Wu (2008) argued that companies create organizational innovation on operation, service and products and also can create barriers to their competitors due to tacit, dynamic, irreducible and extensible properties of knowledge they owned. Knowledge management in the firms can enable organisation to obtain a number of strategic benefits (productivity and efficiency reflected in cost savings, customer relationships, decision making, innovation, corporate agility, rapid development of new product lines, employee learning, satisfaction and retention, and management decision making) (Alavi et al., 2005/2006). In many studies, knowledge sharing is regarded as an important factor in improving innovation capability and performance of the firms (Cummings, 2003; Gurteen, 1999; Liebowitz, 2002; Lin, 2007; Yang and Wu, 2008; Zhi-hong et al. 2008). Based on these arguments, the following hypotheses are formulated.
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Relationship between Knowledge Management and Organizational Performance: A Test on SMEs in Malaysia

Relationship between Knowledge Management and Organizational Performance: A Test on SMEs in Malaysia

Generally, small and medium enterprises (SMEs) play a crucial role in supporting the nation’s economy. Nevertheless, Malaysian SM Es have not developed their full potential. Therefore, it is essential for the entrepreneurs to search for and shift towards better strategies to become more successful. In the present turbulent environments, knowledge has been viewed as a major strategic competitive resource. Given the importance of knowledge, entrepreneurs are encouraged to develop their capabilities to manage knowledge which will move them to become more competitive and innovative. Extensive research is available in the knowledge management literature investigating the process of knowledge management as a composite construct; nonetheless little research has been done to examine the indep endent effects of the individual dimensions of knowledge management process. In particular, little empirical evidence has been found to determine the implementation of knowledge management practices in the context of developing countries and small business. This study aimed to fill the perceived gaps by investigating the relationship between knowledge management process capabilities and organizational performance in the context of M alaysian SM Es. Knowledge management process capabilities were conceptualized as four dimensional constructs: knowledge acquisition, knowledge conversion, knowledge application, and knowledge protection while organizational performance were divided into two dimensions namely, non-financial performance and financial performance. This paper anticipates that the four knowledge management process capabilities are important antecedents of organizational performance, which have in turn a positive relationship with both non-financial performance and financial performance of SM Es. The findings of this study will provide insights to entrepreneurs and help them to identify and develop effective strategies towards enhancing their overall performance.
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An Empirical Study on the Effects of Public Procurement on the Productivity and Survivability of SMEs

An Empirical Study on the Effects of Public Procurement on the Productivity and Survivability of SMEs

A number of econometric techniques have been developed for the policy evaluations. Among them, this study uses that known as propensity score matching estimation (PSME), which has been widely used in policy evaluations recently. Because the PSME is a non-parametric estimation technique, it can identify policy effects even when the variables have non-linear relationships. In addition, it produces credible results for policy evaluations because it only estimates the effects for the range where a control group that is similar to the treated group can be constructed. We also performed a multiple regression analysis as a robustness
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The Review of SMEs Open Innovation  Performance

The Review of SMEs Open Innovation Performance

SMEs to break through the bottleneck of innovation mentioned above. On the one hand, the massive exterior innovation resources can provide SMEs with fresh blood of innovation and a broader space for innovation activ- ity. On the other hand, it may bring more scientific innovation idea and comprehensive innovation management method for them. However, the existing open innovation research pays more attention to large enterprises, while less on SMEs. Open innovation of SMEs shows a completely different characteristic with large enterprises, and thus combing the literature on open innovation performance of SMEs can indicate the direction of future re- search, meanwhile it is of great theoretical and practical significance to enhance the enterprises’ independent innovation capacity of SMEs and promote the development and improvement of open innovation theory.
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