To what extent do you agree with the claim that small to medium sized Essay

To what extent do you agree with the claim that small to medium sized enterprises (SMEs) are always better at innovating than la - Essay Example The drivers of innovation include competitive pressures, and the need to gain competitive advantage. Competitive advantage can also be achieved from firm size or possession of assets (Tidd and Besant, 2009, Ch 2, p1). Mobbs (2010) cites from a book by Baumal who noted that â€Å"virtually all the economic growth that has occurred since the 18th century is ultimately attributable to innovation†. Drivers of Innovation Internationalization, deregulation and globalization have compelled companies to find newer ways to enhance performance, productivity and growth. Innovation has become a strategic priority as it helps to survive adverse changes, to protect market share, to open new horizons and to become market leaders (Mobbs, 2010). As markets have become customer-driven, firms also need to innovate to cater to customer needs, preferences and wants. In addition, advanced communications and transportation technology have fuelled growth thereby increasing competitive pressures on fi rms to innovate (The Economic Intelligence Unit, 2007). Other drivers of innovation include education and technical skills of the workforce and investments in research and development as a percentage of the GDP. Innovation is the application of knowledge in some innovative way and it definitely boosts performance. Business leaders in both small and large companies have started focusing on top- and bottom-line growth and one of the best ways to achieve this is through innovation. They have started evaluating their products, services, processes and even their corporate culture to gain competitive advantage (Mobbs, 2010). This paper evaluates to what extent small and medium-sized companies are better at innovating than larger companies. Types of Innovation Various theories have been put forth by researchers and scholars as they evaluate the potential of SMEs and large firms to innovate. Firm size and age influence survival, but the direction of growth matters more than the firm size (C efis and Marsili, 2005). According to the product life cycle (PLC) theory, both product and process innovation influence market competition in different stages of industry evolution. Process innovation gains prominence as the industry matures. However, product innovation has to be ongoing as in the case of cardiac pacemakers. Firms that could introduce intermittent incremental innovations could support themselves better. Smaller firms would focus on product innovation but there are other ways in which firms can obtain strategic advantage such as change in the process, position (changing identities) and paradigm (new ways of seeing the world). Schumpeter, the founder of innovative studies, believed that entrepreneurs have the propensity to innovate and also receive rewards as long as they enjoy monopoly (Tidd and Besant, 2008). However, they can soon be overtaken by competitors who copy and imitate. Therefore constant innovation keeps the capitalist engine in motion. Sources of Innov ation However, this ability to innovate is more important than any other factor. Innovation transcends all functional areas such as marketing, planning, human resource management and finance. In SMEs most of these functions are carried out by owner-managers who may lack the realization of the process needed for implementing innovation. Moreover, SMEs consider innovation as a one-dimensional function and hence consider innovation only through a major technological breakthrough (Tunney, 2007). However, there is

Annotated Bibliography Example | Topics and Well Written Essays - 1250 words

Annotated Bibliography Example The information on absenteeism from the book would be useful and instrumental in the current research. Eggert, M.A. (2004). Controlling Absenteeism. Management Pocketbooks Ltd., U.K. Discussed theoretical background of absenteeism in terms of provisions of definitions, costs and measurement; identified causes; legal bits; and absence control. The author has provided a concise structural presentation on the most relevant issues confounding absenteeism with a discussion of legal matters most useful for the present study. Written with a backdrop of humor included, interspersed with comic illustrations, the book is an interesting reading and informative source that will definitely be expedient for the researcher. Fulton, K. & Mudley, E. (2008). Dealing with absenteeism in the work place. Retrieved 21 May 2011. Presented appropriate means of dealing with absenteeism with reference to Labour Relations Act (LRA) that rationalizes and find legal grounds linking absenteeism to a form of misconduct or incapacity. The authors provided a brief and concisely structured discourse finding legal grounds for employers, including accurate and explicit policies as incorporated in the organization’s code of discipline. The article, despite its brevity, contains crucial information in terms of legal justifications for providing appropriate sanctions for absenteeism in the work place. This should definitely be used in the current research.... Employee Absenteeism. Retrieved 21 May 2011. Proffered diverse issues on employee absenteeism including reasons, measuring level of absenteeism, suggested steps to minimize the incidence of absenteeism, to evaluate the working conditions to influence the dilemma, and determine motivational factors to preclude absenteeism in the workplace. The study focused on the actual experience in Go Go International Pvt. Ltd. Hassan, a garments manufacturing company, to examine the abovementioned issues and concerns. The methodology, participants, and findings are all relevant for the current research. The study is comprehensive and detailed as it provided an objective and structured approach to address issues confounding absenteeism in the organizational setting. This is definitely a useful and viable source of information for the proposed research. Mitra, S. (2008). â€Å"Managing Absenteeism and Presenteeism in the Workplace.† American Institute of CPAs. Retrieved 21 May 2011. Provided a brief theoretical background on the dilemma prior to delving into the causes of absenteeism and the costs of unscheduled absences in the workplace. The concept of presenteeism was likewise discussed concurrent with identification of its effects. The author cited secondary sources to support information on ways to control both absenteeism and presenteeism. The information contained in the article would be useful for the current study as it presented diverse issues that are deemed critical for the current research. The only weakness identified is the failure of the