Determinants of innovation: A multivariate analysis in Colombian micro, small and medium-sized enterprises

• Jorge Aníbal Restrepo-Morales ^[2] ; Osmar Leandro Loaiza ^[1] ; Juan Gabriel Vanegas ^[2]
  1. [1] Universidad de Antioquia

     Universidad de Antioquia

     Colombia

     
  2. [2] Ciencias Administrativas y Economicas, Tecnologico de Antioquia Institución Universitaria
• Localización: Journal of Economics, Finance and Administrative Science, ISSN-e 2218-0648, ISSN 2077-1886, Vol. 24, Nº. 47, 2019, págs. 97-112
• Idioma: español
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• Resumen

  • This paper aims to study the influence of innovation on micro, small and medium-sized enterprises (MSME) performance in Colombia through the 403 MSMES survey analysis. In particular, this paper measures the effect of participation, product innovation and process innovation on it. Design/methodology/approach: MSME performance is measured through a composite index, estimated through principal components analysis using polychoric correlations, which is based on eight self-reported assessments of MSME performance. Then, this measure of performance is related to MSME participation in regression. Findings: Colombian SMEs are not significantly benefitted from participation. Instead, their performance appears to be dependent upon their internal innovation efforts directed to product development. Moreover, the results suggest that imitators get a performance almost as high as innovators. Originality/value: Innovation activities in Colombian SMEs are carried out informally, as they are mostly uninterested to engage regard to technology, results suggest that almost half of SMEs are classified as followers, namely, they use the same technology as competitors.