gender differential paper IJCRB

ijcrb.webs.com
JUNE 2011
INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 2
With increasing global competition and quickly spreading of knowledge, the future of many
businesses depends upon their ability to innovate. The ability of a company to not only keep
up with its current business practices, but to exceed its own – and its competition's –
expectations are critical to survival (http://www.realinnovation.com).
Due to the great contribution of the innovative activities to the firms’ competitiveness and
success, it is of great interest to identify the barriers and obstacles that limit the development
of innovative activities in firms. A number of studies show that firm differences in barriers to
innovation were related to cost, institutional constraints, human resources, organizational
culture, flow of information and government policy (Mohen and Roller 2005; Baldwin and
Lin 2002). There are many good reasons for paying attention to small and medium sized
enterprises (SMEs). They constitute the 94 percent of Iranian firms (amar.org), they are a
main source of employment, and they are flexible. Iran defines SMEs as independent
businesses that employ less than 250 people (Iranian Commission, 2003).
This paper reports the results of a study that examined barriers to innovation among a sample
of 86 SMEs in the East Azerbaijan Province. East Azerbaijan Province economy has not
been growing in terms of GDP in compare with other provinces in Iran during the period
2006-2008. Innovation contributes to sustained long-run economic growth through industrywide
spillover (Grossman and Helpman 1990; Romer 1986). The value added of 94 % of
Iranian firms is just about 10 % of the whole value added in country (amar.org). John
Cantwell (2003) defined Competitiveness as the possession of the capabilities needed for
sustained economic growth in an internationally competitive environment. The importance of
innovation in organizations´ competitiveness is an undeniable fact. This study assumes the
lag of innovation is the reason of uncompetitive nature of Iranian SMEs. Finding the current
innovation situation and primary obstacles to innovation in East Azerbaijan Province of Iran
are the main goals of this study. In particular, by using empirical data, the paper sheds light
on the issue: the characteristics and behaviors that distinguish innovator firms and noninnovator
firms. The remaining sections of the paper are organized as follows: the second
section presents previous research on innovation and barriers to innovation, the third section
describes the methodology used in the analysis, which is discussed in the fourth section. The
fifth section concludes the paper.
Innovation and its importance for Enterprises
"Innovation . . . is generally understood as the successful introduction of a new thing or
method . . . Innovation is the embodiment, combination, or synthesis of knowledge in
original, relevant, valued new products, processes, or services". (Luecke and Katz, 2003).
Rogers defined innovation as “an idea, practice, or object that is perceived as new by an
individual or unit of adoption”. (Swanson, 1994).To attain the business environmental policy
goals, enterprises will either have to bring about modifies in the way people do something, or
changes in technology. Innovation is one of the main processes by which those changes come
about.
Innovation is not fully about the development of new product (services). Enterprises can also
take advantages administrative innovation (improving internal control, coordination, and
structure), and technical innovations (changes to technology or work processes). Davila et al
(2006) organized reasons why enterprises undertake innovation in the following way:
1-Improved quality
2-Creation of new markets
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