Joanne Johnson

Business strategies in more- and less-innovative firms in Canada

Abstract This study investigates differences in the policies being pursued by more-innovative and less-innovative firms. It focuses on a broad group of strategies — in marketing, finance, production, management, and human resources and asks whether there are key areas in which the strategies being followed by more- and less-innovative firms differ. It also investigates how the activities of firms in each of these areas differ. Finally, it compares the performance of more- and less-innovative firms. The study finds that more-innovative firms place a greater emphasis on management, human resources, marketing, financing, government programs and services, and production efficiencies - each of these areas is important. Finally, more-innovative firms are more successful than less-innovative firms.

Business Strategies in Innovative and Non-Innovative Firms in Canada

This study investigates differences in the policies being pursued by innovative and non-innovative firms. It focuses on a broad group of strategies -- in marketing, finance, production, management and human resources and asks whether there are key areas in which the strategies being followed by innovative and non-innovative firms differ. It also asks how the activities of firms in each of these areas differs. Finally, it compares the performance of innovative and non-innovative firms. The study finds that innovative firms place a greater emphasis on management, human resources, marketing, financing, government programs and services, and production efficiencies. In most of these areas, innovative firms pursue activities more intensively. Finally, innovative firms are more successful than non-innovative firms.

Entry, Innovation and Firm Growth

Recent studies have demonstrated the quantitative importance of entry, exit, growth, and decline in the industrial population (see 4Baldwin, 1995). This turnover rewards innovative activity and contributes to productivity growth. Entry is not the only process that causes turnover in the firm population. Growth and decline also occur in the incumbent population. But entry and exit make a significant contribution to the total amount of turnover that takes place.

The implications of innovation for human resource strategies

Abstract This article examines three issues. The first is the pervasiveness of technology use and the impact of technology use on performance in the Canadian manufacturing sector. The use of advanced technologies, particularly labour-enhancing ones, is found to be widespread. A strong connection between technology adoption and superior performance is also found. The second section examines the relationship between technology adoption and training in manufacturing firms. Firms using either labour-saving or labour-enhancing technologies are found to be more likely to train. The third section expands this analysis to examine how innovation-related strategies and activities are related to training. Innovation is found to be a key driver behind training in all sectors.

Differences in Strategies and Performance of Different Types of Innovators

The strategies and competencies of small and medium-sized firms are explored here using the responses to the Survey of Growing Small and Medium Size Enterprises, conducted by Statistics Canada. The paper classifies small and medium-sized firms by innovator type and explores the complementary strategies in management, marketing, human resources and financing that are adopted by each innovator type and the success of each type of innovator. A taxonomy of innovative types is developed that is based on the product/process development orientation of the firm. Differences in competencies in the area of human resources, management, marketing and finance that are possessed by firms in each group are examined. Firms are classified into one of four groups-product innovators, comprehensive (product and process) innovators, process innovators, or non-innovators-based on their responses to 22 innovation-related questions on the survey. These groups correspond to different stages in the development of a product market. Product innovators occupy the first stage, the time when the product is initially introduced. Comprehensive innovators represent the second stage, when the product demand is still growing, and firms in addition to producing new products, have begun to make dramatic improvements in their production efficiencies, by concentrating on process innovations as well as product innovations. Process innovators represent the third phase in the development of a product market, when the product characteristics have become established, and firms seek to improve their market share mainly by improving their production efficiencies. Finally, the last phase is characterized by a relatively stable product line, with a mature production technology. The competencies of firms differ across these innovative types. Comprehensive innovators tend to develop greater capabilities than the other innovators in a wide range of areas. Comprehensive innovators also tend to outperform the other innovators in terms of growth in sales, market share, and employment size. Innovators also tailor their financial strategies to their innovator type. Product innovators focus on a low debt/asset strategy with non-standard sources like venture capital. In later stages of the innovation life cycle-comprehensive and process innovators place great emphasis on higher debt/asset ratios and make greater use of long-term debt and equity capital.