Page 19 - Gričar, Sergej, Barbara Rodica and Štefan Bojnec, 2016. Sandwich Management. Koper: University of Primorska Press
P. 19
Inovation in SME
In a dynamic environment companies constantly strive for ways to differ-
entiate themselves from their competitors. Regardless of the size of an in-
dividual region or country, innovativeness in enterprises is of great impor-
tance to the development and success of the economy. We introduce the
literature overview of the nature of strategies and competencies that are
neded for the successful of small and medium enterprises – SMEs (defined
in Chapter 5.1) in service sector. The list of key factors that are said to de-
termine the success and failures of the small-enterprises segment is long. It
depend of their ability to produce a high quality output for special markets
and also their flexibility associated with a lean organization that allows
them to provide quick and efficient service. »Popular opinion attributes
the success of small firms to quick decision-making, simple administra-
tive structures, and flexible operations« (Baldwin and Gellatly 2003, 107).
Nedelko and Potočan (2011) claim that management innovativeness is im-
portant in all organizations, especially in current economic conditions. It
is demonstrated that innovation is the key to success. Innovation activity is
recognized for creating such opportunities. We explore the scope, breadth
and depth of innovation in small enterprises.
The importance of service sector has grown, in terms of both employ-
ment and productivity. It is now the main source of employment in all of
the European Union (EU) countries. Services are key for growth. They are
the driving force of the European economy. In 2011, almost 70 % of the
workers in the EU carried out their functions within the service sector
and in last five years number is growing. »Services account for over two-
In a dynamic environment companies constantly strive for ways to differ-
entiate themselves from their competitors. Regardless of the size of an in-
dividual region or country, innovativeness in enterprises is of great impor-
tance to the development and success of the economy. We introduce the
literature overview of the nature of strategies and competencies that are
neded for the successful of small and medium enterprises – SMEs (defined
in Chapter 5.1) in service sector. The list of key factors that are said to de-
termine the success and failures of the small-enterprises segment is long. It
depend of their ability to produce a high quality output for special markets
and also their flexibility associated with a lean organization that allows
them to provide quick and efficient service. »Popular opinion attributes
the success of small firms to quick decision-making, simple administra-
tive structures, and flexible operations« (Baldwin and Gellatly 2003, 107).
Nedelko and Potočan (2011) claim that management innovativeness is im-
portant in all organizations, especially in current economic conditions. It
is demonstrated that innovation is the key to success. Innovation activity is
recognized for creating such opportunities. We explore the scope, breadth
and depth of innovation in small enterprises.
The importance of service sector has grown, in terms of both employ-
ment and productivity. It is now the main source of employment in all of
the European Union (EU) countries. Services are key for growth. They are
the driving force of the European economy. In 2011, almost 70 % of the
workers in the EU carried out their functions within the service sector
and in last five years number is growing. »Services account for over two-
