The innovation performance of Russian SMEs: the role of internal factors and the external transition context

Abstract

The purpose of the research is to link both internal and external factors to the innovation performance of manufacturing SMEs in a transition economy.

The methodology of the research is based on linear regression analysis in order to find the relationship of internal and external factors with the innovation performance of SMEs.

The main findings of the research are positive linkages of firm size, innovation intensity, product competitiveness, collaboration with other firms, and external funding sources with the innovation performance of SMEs. However, firm age, collaboration with industry associations and financial/organizational government support do not have a significant impact on the innovation performance of SMEs.

The research has some limitations, namely country and industry-specific findings. In this paper, the analysis was based on a sample from the RuFIGE database that consisted of Russian manufacturing SMEs. Moreover, the study is limited through the variables included in the linear-regression model to discussing particular internal and external factors that affect the innovation performance of SMEs. Future research may be based on diverse countries, industries and statistical variables.

The paper offers practical implications for managers that are willing to improve innovation performance and competitiveness of SMEs. The results also shed some light for policymakers on the main factors that influence SMEs’ innovations.
The value of the research is to provide some insight into both internal and external factors that influence the innovation performance of Russian manufacturing SMEs in the context of transition economies.

Paper type: Research paper