Role of innovation strategy in the business growth of high-technology SMEs in UK
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AbstractInnovative high-technology SMEs have become a major influencing factor in the success of any modern economy and they increasingly compete in the globalised world with limited resources. Previous research on SMEs at firm level has always taken into consideration the constraints of the resources that an SME faces and the implications of this on their performance and business growth. SMEs have to develop their own unique skills and capabilities, allocating their limited resources appropriately to be able to respond to the changes in the external business environment that pose risks to the success of their innovation and its commercialisation. Having an innovation strategy is very important: to have a clear goal and a path to achieve the set goal. This helps high-technology SMEs to decide which factors can influence the success of their innovations, leading to business growth by developing dynamic capabilities to respond to the external changes by allocating their resources at their disposal. This thesis is an empirical analysis of innovation strategy and its role in the business growth of high-technology SMEs. This research study is carried out at firm level. It draws on Resource-Based View and Dynamic Capability theory to explore innovation strategy factors contributing to the better performance of the firm. Four hypotheses were proposed based on the theoretical framework developed through the literature review. They were tested using empirical data. The primary data were collected using quantitative methods through survey questionnaire. Data was collected from 106 high-technology SMEs in the UK. Technological factor, marketing factor, entrepreneurial factor and risk from the business environment were identified as four important factors which are part of an innovation strategy. The results of the study suggest three revised factors: technology, entrepreneurial and government-related risk factors. The initial risk related to business environment was amended to government-related risk factors based on the measurement variables which were loaded to the factor. However, one hypothesis based on the marketing factor failed to support the proposed positive influence on business growth and hence rejected. This calls for further research on the marketing factor in high-technology SMEs. This study recognises the reason behind this paradoxical result, which could be the nature of the high-technology firms participating in this study, which are more dependent on technology-push rather than marketing pull and they do not confirm with the established norms of marketing for the business growth of their firm. This study contributes to the development of knowledge and practice at multiple levels. The research developed a theoretical framework to establish the innovation strategy factors and its influence on business growth and this is validated through empirical data. At the practice level, the results of the study could be used by high-technology SMEs in the UK, and any other high-technology SMEs which are based in a similar economy and business environment, to have better information about innovation strategy. The study could also help policy makers, propose better policy to support innovation of high-technology SMEs in UK.
CitationNagaraju, R. (2015) 'Role of Innovation Strategy in the Business Growth of High-Technology SMEs in UK' PhD Thesis. University of Bedfordshire
PublisherUniversity of Bedfordshire
TypeThesis or dissertation
DescriptionA thesis submitted to the University of Bedfordshire, in partial fulfilment of the requirements for the degree of Doctor of Philosophy
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