A Framework Relating Innovation Strategy and Business Growth in Small to Medium Sized Enterprises (SMEs)

Purpose - In times of austerity there is much attention paid to the role of small business in economic recovery and the need for business growth in general. Business 'growth' is considered to be one of the most popular and widely known measures of any company's success ( Storey 1994). While advances have been made in the measurement of innovation at regional, national and European levels there is still ambiguity around the measurement of innovation at the firm level, recognition of firm level strategy and little attempt to relate grand theories in innovation strategy and growth to the SME context. This paper provides the starting point for a larger study which will reassess the relationship between innovation strategy and business growth in small business. Design/Methodology - The research approach is inductive. The author uses a literature review to explore relevant theory and to develop a provisional framework relating innovation strategy and business growth. The intention is to subsequently use the framework to empirically explore innovation and business growth in the high tech sector with a view to providing researchers with a mechanism of identifying high growth SMEs. The Originality and Value - The paper is original and has value in that it provides a fresh look at the literature in this area, providing a basis on which further empirical investigation can be undertaken with the SME sector. Paper type - The study forms the first stage of a PhD project. The author invites review of the provisional framework proposed.