Abstract

This study investigates the conditions leading to higher levels of innovation using fuzzy-set qualitative comparative analysis (fsQCA). More specifically, using fsQCA, this study explores the impact of inter-organisational knowledge transfer networks and organisations’ internal capabilities on different types of innovation in Small to Medium size Enterprises (SMEs) in the high-tech sector. A survey was used to collect data from a sample of UK SMEs. The findings show that although individual factors are important, there is no need for a company to perform well in all the areas to improve innovation performance. The fsQCA method, using different combinations of the key factors, revealed that there are many paths to achieve better incremental and radical innovation performance and companies need to choose the one that better matches to their abilities and fits with their resources.

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