INNOVATION AND ORGANISATIONAL SIZE IN IRISH SMES: AN EMPIRICAL STUDY

Abstract

The aim of this paper is to conduct an empirical study to explore the influence of size category on innovation incorporation in Irish SMEs. Changes in markets and in large organisation strategies have resulted in the need for SMEs to re-examine and modify their competitive strategies to increase innovation. Although there is some literature on innovation incorporation in SMEs, there is a lack of direct studies on this issue, with a reliance on related but indirect studies such as Reengineering and New product development in SMEs. Furthermore, there is a paucity of studies and data on the innovation incorporation in different organisational size categories within SMEs. This study uses a grounded SME innovation model developed from earlier studies as the basis of a questionnaire survey of 2086 SMEs in Northern Ireland. The results indicate that SME organisational size categories has a significant effect on innovation incorporation in relation to leadership, people and culture, TQM/CI, product and process and Knowledge and information management.