Analysis of factors influencing innovation of Hungarian small and medium-sized enterprises
-
DOIhttp://dx.doi.org/10.21511/ppm.23(1).2025.47
-
Article InfoVolume 23 2025, Issue #1, pp. 635-642
- 50 Views
-
9 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Innovation is vital in the modern economic environment, as it aims to improve the operational efficiency, competitiveness, and sustainability of enterprises. The study aimed to examine the innovation activity of Hungarian small and medium-sized enterprises and the most important factors influencing their innovation. The paper employed a questionnaire survey in the spring of 2024. During the survey, a total of 253 companies were interviewed about their innovation factors. Based on the results, the innovation activity of the Hungarian SME sector shows a developing tendency. A positive attitude toward innovation is increasingly present among SMEs. More than half of the respondents (53%) believe that innovation plays a key role in maintaining competitiveness. However, in practice, almost two-thirds (58%) of managers do not involve their employees in innovation processes, or only partially, suggesting that companies’ decision-making processes remain centralized. Statistical analyses showed that neither the companies’ size nor age showed a significant correlation with innovation. However, the research results showed a close relationship between innovation and the use of knowledge transfer. This result shows that knowledge management plays a decisive role in the innovation processes of Hungarian small and medium-sized enterprises.
Acknowledgments
This study is funded by the Science Committee of the Ministry of Education and Science of the Republic of Kazakhstan (Grant “Strategy of structural and technological modernization of the basic sectors of the economy of the Republic of Kazakhstan based on ESG: criteria, mechanisms and forecast scenario” No. BR24993089).
- Keywords
-
JEL Classification (Paper profile tab)M21, O31, O36
-
References36
-
Tables4
-
Figures0
-
- Table 1. General data from surveyed companies
- Table 2. Model summary
- Table 3. Results of chi-squared tests for H2
- Table 4. Results of chi-squared tests for H3
-
- Amimakmur, S. A., Saifi, M., Damayanti, C. R., & Hutahayan, B. (2024). Assessing the moderating effect of IT innovation on the interplay among company size, financial performance, and company value. Journal of Open Innovation: Technology, Market, and Complexity, 10(3), Article 100318.
- Bouncken, R. B., Ratzmann, M., & Kraus, S. (2021). Anti-aging: How innovation is shaped by firm age and mutual knowledge creation in an alliance. Journal of Business Research, 137, 422-429.
- Bruothová, M., Hintošová, A.B., & Hliboká, L. (2014). Innovation activity and enterprises’ size. Central European Journal of Management, 1(1).
- Csonka, L. (2017). Collaboration among Hungarian SMEs in innovation. In A. Tsvetkova, J. Schmutzler, M. Suarez, & A. Faggian (Eds.), Innovation in Developing and Transition Countries (pp. 171-189). Edward Elgar Publishing.
- Damanpour, F. (1991). Organizational innovation: A meta-analysis of effects of determinants and moderators. Academy of Management Journal, 34(3), 555-590.
- Forsman, H., & Rantanen, H. (2011). Small manufacturing and service enterprises as innovators: A comparison by size. European Journal of Innovation Management, 14(1), 27-50.
- Halpern, L., & Muraközy, B. (2012). Innovation, productivity and exports: The case of Hungary. Economics of Innovation and New Technology, 21(2), 151-173.
- Hossain, M. B., Rahman, M. U., Čater, T., & Vasa, L. (2024). Determinants of SMEs’ strategic entrepreneurial innovative digitalization: Examining the mediation role of human capital. European Journal of Innovation Management.
- Ibidunni, A. S., Kolawole, A. I., Olokundun, M. A., & Ogbari, M. E. (2020). Knowledge transfer and innovation performance of small and medium enterprises (SMEs): An informal economy analysis. Heliyon, 6(8), Article e04740.
- Kastner, C. (2021). The role of a leader: Transformational efforts in innovation and change. In V. Nestle, P. Glauner, & P. Plugmann (Eds.), Creating Innovation Spaces (pp. 71-84). Cham: Springer.
- Kelley, M. R., & Helper, S. (1999). Firm size and capabilities, regional agglomeration, and the adoption of new technology. Economics of Innovation and New Technology, 8(1-2), 79-103.
- Kotaskova, A., Lazanyi, K., Amoah, J., & Belás, J. (2020). Financial risk management in the V4 countries’ SMEs segment. Investment Management and Financial Innovations, 17(4), 228-240.
- Laforet, S. (2013). Organizational innovation outcomes in SMEs: Effects of age, size, and sector. Journal of World Business, 48(4), 490-502.
- Lee, M. C. (2016). Knowledge management and innovation management: Best practices in knowledge sharing and knowledge value chain. International Journal of Innovation and Learning, 19(2), 206-226.
- Lentner, C., & Kolozsi, P.P. (2019). Innovative ways of thinking concerning economic governance after the global financial crisis. Problems and Perspectives in Management, 17(3), 122-131.
- Lewandowska, A., Bilan, Y., & Mentel, G. (2021). The impact of financial innovation investment support on SME competitiveness. Journal of Competitiveness, 13(3), 92-110.
- Maron, S., Lussier, R. N., & Sonfield, M. (2019). Entrepreneurial strategy: The relationship between firm size and levels of innovation and risk in small businesses. Journal of Small Business Strategy, 29(3), 33-45.
- Medase, S. K. (2020). Product innovation and employees’ slack time. The moderating role of firm age & size. Journal of Innovation & Knowledge, 5(3), 151-174.
- Naushad, M. (2022). SME innovation and employee creativity: The role of entrepreneurial leadership. Problems and Perspectives in Management, 20(4), 560-572.
- Ng, K.-S., Ahmad, A. R., Chan Wei, K., & Rizad Md, S.H. (2017). SMES are embracing innovation for business performance. Journal of Innovation Management in Small and Medium Enterprises, 2017.
- Öberg, C., & Alexander, A. T. (2019). The openness of open innovation in ecosystems – Integrating innovation and management literature on knowledge linkages. Journal of Innovation & Knowledge, 4(4), 211-218.
- Ode, E., & Ayavoo, R. (2020). The mediating role of knowledge application in the relationship between knowledge management practices and firm innovation. Journal of Innovation & Knowledge, 5(3), 210-218.
- Ónodi, A. K., & Kiss, J. (2023). What factors influence the innovation activity of companies? – The case of Hungary. International Journal of Technological Learning, Innovation and Development, 15(1).
- O’Reilly, C. A., & Tushman, M. L. (2008). Ambidexterity as a dynamic capability: Resolving the innovator’s dilemma. Research in Organizational Behavior, 28, 185-206.
- Parsons, R. A. (2015). The impact of age on innovation. Management Research Review, 38(4), 404-420.
- Philipson, S. (2020). Sources of innovation: Consequences for knowledge production and transfer. Journal of Innovation & Knowledge, 5(1), 50-58.
- Plehn-Dujowich, J. M. (2009). Firm size and types of innovation. Economics of Innovation and New Technology, 18(3), 205-223.
- Rogers, M. (2004). Networks, firm size and innovation. Small Business Economics, 22(2), 141-153.
- Simon, D., & Reicher, R. (2024). Difficulties and advantages of internationalization in the Hungarian SME sector. In M. Sávai (Ed.), 2024: Green and Digital Transitions: Global Insights into Sustainable Solutions. Szeged.
- Soken, N., & Barnes, B.K. (2014). What kills innovation? Your role as a leader in supporting an innovative culture. Industrial and Commercial Training, 46(1), 7-15.
- Stawasz, E., & Głodek, P. (2011). SMEs innovation and job creation potential in the shadow economy context. Comparative Economic Research. Central and Eastern Europe, 13(4), 99-115.
- Steidle, G. K. (2018). Leading from within: How mindfulness drives effective leadership and social innovation. Leader to Leader, 2018(89), 32-38.
- Szalmáné Csete, M. (2024). Digitalization and adaptation, from a regional perspective – A Hungarian case study. Acta Polytechnica Hungarica, 21(7), 147-167.
- Tóth, R., Kása, R., & Lentner, C. (2022). Identifying the influencing factors of financial literacy across pre- and “post” pandemic times at the Hungarian SMEs. Acta Polytechnica Hungarica, 19(8), 9-29.
- Wiroonrath, S., Phanniphong, K., Somnuk, S., & Na-Nan, K. (2024). Impact of leader support on open innovation: The mediating role of organizational culture, intellectual property, and collaboration. Journal of Open Innovation: Technology, Market, and Complexity, 10(3), Article 100333.
- Zamani, S. Z. (2022). Small and medium enterprises (SMEs) facing an evolving technological era: A systematic literature review on the adoption of technologies in SMEs. European Journal of Innovation Management, 25(6), 735-757.