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Performance management through innovation capability in SMEs

Saunila, Minna (2014-08-29)

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Minna Saunila A4.pdf (1.641Mb)
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Väitöskirja

Saunila, Minna
29.08.2014
Lappeenranta University of Technology

Acta Universitatis Lappeenrantaensis

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Julkaisun pysyvä osoite on
https://urn.fi/URN:ISBN:978-952-265-614-8

Tiivistelmä

Small and medium-sized enterprises (SMEs) are assuredly important to maintain strong
economic growth. How to manage and maintain SMEs’ performance is a sizable challenge,
and requires an understanding of the drivers of performance. Innovation capability has been
suggested to be one of these key drivers. In order to manage innovation capability–
performance relationship, it has to be measured. SMEs may have distinct characteristics that
separate them being just smaller versions of large firms. Performance measurement and
management of innovation capability is challenging, because SMEs usually have some
drawbacks compared to large firms. Thus, it is unclear whether theories developed to
understand large firms apply to SMEs.
This research contributes to the existing discussion on performance management through
innovation capability in the SME context. First, it aims at increasing understanding of the role
of innovation capability in performance management. Second, it aims at clarifying the role of
performance measurement in developing innovation capability. Thus, the main objective of
the research is to study how to manage performance through measuring and managing
innovation capability.
The thesis is based on five research articles that follow a positivist approach. From a
methodological point of view, quantitative and complementing conceptual methods of data
collection are utilized.
This research indicates that the performance management and measurement play a significant
role in innovation capability in SMEs. This research makes three main contributions. First, it
gives empirical evidence on the connection between innovation capability and SME performance. Second, it illustrates the connection between performance measurement and
innovation capability. Thirdly, it clarifies how to measure the relationship between innovation
capability and performance.
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53851 Lappeenranta
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