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

International Journal Entrepreneurship and Innovation Management, Vol. 5, Nos. 5/6, pp. 483-494, 2011

Posted: 14 Dec 2011

See all articles by Tim Mazzarol

Tim Mazzarol

University of Western Australia

Sophie Reboud

Université de Bourgogne - Burgundy School of Business

Date Written: December, 12 2011

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.

Keywords: small business, entrepreneurship, innovation, risk assessment

Suggested Citation

Mazzarol, Tim and Reboud, Sophie, Customers as Predictors of Rent Returns to Innovation in Small Firms: An Exploratory Study (December, 12 2011). International Journal Entrepreneurship and Innovation Management, Vol. 5, Nos. 5/6, pp. 483-494, 2011. Available at SSRN: https://ssrn.com/abstract=1971522

Tim Mazzarol

University of Western Australia ( email )

35 Stirling Highway
Crawley, Western Australia 6009
Australia
+618 6488-3981 (Phone)
+618 6488-1072 (Fax)

Sophie Reboud (Contact Author)

Université de Bourgogne - Burgundy School of Business ( email )

29 rue Sambin
Dijon, 21006
France

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