What Determines the Entrepreneurial Innovative Capability of Portuguese Industrial Firms?

Posted: 19 Oct 2007

See all articles by Maria José Silva

Maria José Silva

University of Beira Interior

João Leitão

University of Beira Interior, Department of Management and Economics; Technical university of Lisbon, Centre for Management Studies of Instituto Superior Técnico (CEG-IST); Instituto Multidisciplinar de Empresa

Date Written: October 10, 2007

Abstract

In the context of globalization, innovation is considered as a key factor for enhancing the competitiveness of firms. Nowadays, it is widely accepted that Portuguese firms face an increasing competitive environment, which is characterized by internationalization and globalization. In this sense, it becomes important to analyze the determinant factors of innovation capability of firms.

This paper aims to identify and analyze the degree of importance of the determinant factors of innovation capability of Portuguese industrial firms. The data obtained through the 2rd Community Innovation Survey (CIS II) conducted by EUROSTAT, is used in a linear regression model. The entrepreneurial innovative capability, measured as product innovation, is considered as the variable answer, in the estimation process of a Logit function.

The paper presents an innovative contribution since it uses a set of five determinant factors of innovation capability of industrial firms, at a product innovation level. Technological capacity, dimension of the firm, activity sector, market orientation and location of the firm, are considered as determinants factors of innovation capability of the firms. The results of the joint analysis provide the identification of stimulating factors and restraining factors of the entrepreneurial innovative capability of a selected sample of Portuguese industrial firms.

Under a Schumpeterian approach, the paper ratifies that large enterprises are more prone to innovate than small enterprises. The dimension plays a role, in terms of the strategic conduct implemented by small firms, which are not so prone to innovate, due to its small dimension. Benchmarking the Portuguese case is particularly important, because small industrial enterprises face restraining conditions imposed by outsourcing contracts that are established between small producers and leading international buyers. This restrains, broadly, the entrepreneurial innovative capability of small industrial enterprises.

Keywords: Innovation, Entrepreneurial Innovative Capability.

JEL Classification: O31, O32

Suggested Citation

Silva, Maria José and Leitão, João, What Determines the Entrepreneurial Innovative Capability of Portuguese Industrial Firms? (October 10, 2007). Available at SSRN: https://ssrn.com/abstract=1020881 or http://dx.doi.org/10.2139/ssrn.1020881

Maria José Silva

University of Beira Interior ( email )

Estrada do Sineiro
6200-209 Covilha, PA
Portugal

João Leitão (Contact Author)

University of Beira Interior, Department of Management and Economics ( email )

Faculty of Social Sciences and Humanities
Estrada do Sineiro
Covilha, 6200 209
Portugal
+351275319620 (Phone)

HOME PAGE: http://https://www.ubi.pt/Pessoa/jleitao

Technical university of Lisbon, Centre for Management Studies of Instituto Superior Técnico (CEG-IST) ( email )

Lisbon
Portugal

HOME PAGE: http://www.ist.utl.pt

Instituto Multidisciplinar de Empresa ( email )

Campus Miguel de Unamuno
ES-37007 Salamanca, Salamanca 23007
Spain

HOME PAGE: http://https://imeusal.com/

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