Antecedents of SMEs’ product innovation performance: a configurational perspective

Abstract

This study examines antecedents of product innovation performance in small and medium-sized enterprises (SMEs). Drawing on the resource-based theory, it is argued that because innovation is a complex and highly demanding activity, the capacity to innovate should be viewed as a configuration of tightly coupled functional and administrative competencies that together, not in isolation, explain product innovation. In addition, it is hypothesised that technological collaboration with third parties is an effective means for SMEs to overcome their key liability with respect to innovation, that is, their endemic resource scarcity. Empirical results obtained from a sample of Greek manufacturing firms confirm these predictions. The study’s main contribution is to provide a more holistic view of SME’s innovation behaviour by adopting a configurational perspective.