Soumodip Sarkar

Innovation in services – how different from manufacturing?

Using standardised firm data a comparative analysis of the determinants of product and process innovation in manufacturing and services is performed. Results show that in services there are significant differences in innovation behaviour, in terms of intramural and extramural R&D. It is also found that size matters less in services than in manufacturing. Although youth has a positive effect in both cases, young service firms are more likely than young manufacturing of being pioneer innovators. The results reveal the importance of learning by doing in service process innovations, as young service firms are less likely to introduce process innovations.

Separating the wheat from the chaff – a taxonomy of open innovation

Purpose – The main objective of this paper is to shed light on the confusion of terminologies related to open innovation through the development of an open innovation taxonomy. By analyzing published case studies using numerical taxonomy methods, it proposes a taxonomic classification of open innovation.Design/methodology/approach – Earlier work on firm collaboration and concepts related to open innovation in order to understand the main motivations, and conditions behind open innovation‐like strategies is first to be reviewed in this paper. It then proceeds to collect and systematically analyze 20 published case studies, and using numerical taxonomy methods it produces a taxonomic classification of open innovation. As a first approach to taxonomy on open innovation strategies, the UPGMA methodology used seems very promising. The taxonomy of open innovation developed here can also be used as a decision‐making tool through the comparison of open innovation strategies inherent in the taxonomy.Findings – Thr...

Delivered nonlinear pricing by duopolists

Abstract This paper presents a model of delivered nonlinear pricing by duopolists operating in a linear city with two types of consumers and having incomplete information. At each location, the higher cost firm offers a uniform price equal to its delivered marginal cost while the lower cost firm offers a nonlinear tariff. For nearby locations, the lower cost firm may charge monopoly nonlinear prices, but as the distance increases the quantity consumed by the low valuation consumer becomes less inefficient than under monopoly. In the market region closest to the competitor’s market we get an efficient outcome. If firms choose locations, before choosing tariff schedules, they will locate at the median of their equilibrium sales distribution.

Market structures, strategy and innovation in tourism sector

Purpose – This study aims to add to the existing body of knowledge the link between market structures, strategy and innovation by applying the diagnostic test of the integrated model of innovation, and also present the results of an empirical study applied to tourism in a small open economy. The study uses an archetype and the market outcome resulting from the innovation strategies pursued to compare similarities and differences according to a firms’ geographical location to identify innovative patterns in tourism firms. Design/methodology/approach – The study applies a multivariate analysis using a data set consisting of survey responses from 158 Portuguese firms. Findings – The findings indicate links between service, market structures and innovation strategies considering geographical agglomeration of firms in a small economy, and also different innovation trajectories and positions in the model. Research limitations/implications – The results of this study are generalizable to a dynamic industry conte...

Grassroots entrepreneurs and social change at the bottom of the pyramid: the role of bricolage

Abstract This study explores how entrepreneurs living and working at the ‘bottom of the pyramid’ overcome acute resource constraints to create something from nothing. In a departure from most previous studies that consider those at the bottom either as potential consumers or as recipients of aid, we look at grassroots entrepreneurs. Despite extremely challenging conditions, they are able to assemble resources and to combine and align principles of business strategy and social value creation to effect important economic and social change. Using a resource based view lens, we redirect the spotlight onto the individual entrepreneur in social entrepreneurship and extend the study of bricolage to that field. We rely on inductive methodology applied to eight cases to unpack the resource assembly process of such entrepreneurs, revealing distinctive features of bricolage such as the setting aside of cultural norms, the rejigging of domain-specific skills, and the use of spare time.

Innovation behaviour in financial services: an empirical analysis

In this paper, using standardised data for over 7000 service sector firms, we test different hypotheses to understand to what extent innovation output and activity in financial sector firms is different from other service firms. An intriguing result for the service sector as a whole is that the effect of a firm being part of a multinational group is negative for product innovation but positive for process innovation. Comparing the innovation behaviour of financial and non-financial services firms, we obtain four very interesting and significant differences. Firstly, we find that financial services have a lower probability of introducing product innovations, but a higher probability of introducing process innovations. Secondly, we find that financial services firms are not particularly good pioneer innovators, but they are quite good as innovation imitators. Thirdly, for the financial services firms, being part of a multinational group increases the probability of the firm being both a pioneer innovator and a product innovator. Finally, we find differences in innovation behaviour due to firm size.

Angel investing in an austerity economy – the take-up of government policies in Portugal

ABSTRACT Business angels (BAs) are recognized as playing a significant role in stimulating entrepreneurial activity. With the decline in both bank lending and venture capital investment since the onset of the global economic crisis, government efforts to stimulate BA activity have become a more significant component in strategies to increase the level of entrepreneurial activity. This paper examines the responsiveness of angels to such initiatives in so-called austerity economies – countries that were hardest hit by the financial crisis of 2008 and subsequent global recession and, as a consequence, had to take extreme economic and fiscal measures to reduce their budget deficits. We examine this question in Portugal which experienced one of the deepest recessions in the European Union following the implementation of severe austerity measures. This study confirms that government intervention to support angel investing can have a positive impact. However, the different types of intervention have varied in take-up rates. Other countries can learn from the Portuguese experience in three ways: the types of interventions that have the highest and lowest levels of take-up, the link between the design and the take-up of incentives, and types of intervention that should be considered but have not been implemented in Portugal.