The paper "Role of Innovation in Firm’ s Competitiveness" is an outstanding example of business coursework. Technological innovations have come up in recent years and they are used as an imperative foundation for competitive strength. Most companies have been successful through the use of innovation. Innovation has helped the firms gain an upper hand as compared to their competitors. If a firm wants to be competitive and capture new markets, it cannot avoid innovation (Becheikh, Landry & Amara, 2006). There are many factors that drive innovation; they include individual, academic institutions and companies.
While large organizations have strong technological innovation, the ideas for products and services introduced in the market by the big companies originate from SMEs. Looking through a business eye, this paper will look into the technological capacities of firms and the role of technological innovations in business competitiveness. This paper will look at the framework used by businesses to classify and characterize diverse forms of technological innovations and how they affect the capability of the firm. Small enterprises have a narrow focus that allows them to be functional companies with expertise potential. Organizational Innovativeness In the dynamic economies, all the organizations embrace technological innovations inclusive of companies in the production industry and the distribution of services and goods who are thought to be traditional in nature.
This helps the organizations who embrace innovation to have a competitive advantage in the environment in their respective industry globally. This shows that innovation and competitiveness are related closely. The formation of an efficient and vigorous system of technological innovation is an important factor to spur economic growth. The system also helps in improving the standards of living in the society (Adkinson, 2011). For the technological innovation structure to produce the intended impact on the competitiveness of the organization, they should not only improve the major feature like technological, production, financing and scientific components but the improvement of the relationship of these components via the available mechanisms of the interface (Chen, Lin & Chang, 2009).
An institutional and microeconomic environment which is favourable is also necessary. A system of public education should also be in place to provide customized training for the business needs, an efficient market for the goods and services that would encourage competence of the entrepreneurs.
The labor market which assists the organization adapts quickly to the change demanded and economic environment should also be in place. A number of these factors are the basic principles for an organization to develop an excellent innovation system (Chen, Lin & Chang, 2009). Better standards of living, job growth and competitiveness are mainly driven by innovation. So as to improve the firm’ s competitiveness, it is helpful to study the features that earlier allowed innovation in the organizations (Chen, Lin & Chang, 2009).
These features are numerous. The procedure of innovation and competitiveness is complicated in developing and differs in accordance with the industry and the products. Technological innovations in business are supported by infrastructure, education and research. This helps the organization to be competitive even in the future (Cefis & Marsili, 2006). In a firm’ s competitiveness, technological innovation plays a vital role. It is also worth to note that, between organizations of different sizes, the small and medium enterprises have an upper hand in innovation. The SMEs are flexible and have the capability to adapt in a better way while they are a perfect position to start and execute fresh ideas.
SMEs are flexible and have an organizational structure which is simple. The SMEs also boasts of approachability and they have a low risk. Al these vital features combined facilitates the SMEs to be innovative. This shows that the SMEs have unrealized potential to be innovative (Chaminade and Vang 2006).
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