Customers as Predictors of Rent Returns to Innovation in Small Firms - An Exploratory Study

TitleCustomers as Predictors of Rent Returns to Innovation in Small Firms - An Exploratory Study
Publication TypeJournal Article
Year of Publication2005
Tertiary AuthorsMazzarol, T, Reboud, S
JournalInternational Journal of Entrepreneurship and Innovation Management
Volume5
Issue5/6
Pagination483-464
ISSN1368-275X
KeywordsEntrepreneurship, Innovation, risk assessment, Small Business
Abstract

Small to medium enterprises (SME) are frequently associated with high levels of innovation. However, it is difficult for such firms to fully assess the merits of a particular innovation. This study examined the risk-return profile of future investment in innovation by SME with respect to anticipated ‘rent’ or financial returns. A survey of highly innovative SME was undertaken that examined management perceptions of the key strategic influences on rent returns. Regression analysis suggests that the firms’ assessment of the rent returns from their innovation may be influenced by the value it is likely to deliver to the customer, the customer’s expected use of the innovation to generate new sales and the ease of integrating the new innovation into existing technologies. The findings have implications for how entrepreneurs from early stage ventures are assisted.

URLhttp://www.inderscience.com/search/index.php?action=record&rec_id=7001&prevQuery=&ps=10&m=orv