Impact of Innovation Type on Financial and Non-financial Performance of SMES. A Scoping Review

Abstract

To take advantage of existing opportunities in a market of global competition and rapid changes, firms try to adapt their strategy by introducing new or improved innovation types. While there is a large body of literature investigating the relationship between innovation and performance, there is a need to further analyze the role of innovation type on performance, especially in SMEs. Using a scoping review approach, this study aims to evaluate the influence of innovation types on firm performance in SMEs. A total of 47 studies were selected to examine the correlation between innovation type and performance, and identify the key factors that strongly impact the firm growth per industry. Findings demonstrate the difference in innovation impact according to the targeted industrial sector and show which type could be more beneficial to enhance firm performance. In the most studied industries, results reveal that product innovation influences strongly firm performance in the manufacturing sector, while marketing and product innovation are the variables that most impact the growth of agro-food firms. Similarly, organizational and product innovation affect highly firm improvement in the manufacturing and service sectors. This study helps managers in their struggle to obtain growth by targeting the most appropriate dimensions of innovation and helps policy makers by making decisions that stimulate firm development.