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Analysis of a Swedish High Technology SME Using the Survival Index Value (SIV) Model
Sahlgrenska Academy, University of Gothenburg, Sweden.
Linköping University, Department of Management and Engineering, Project management, Innovations and Entrepreneurship . Linköping University, The Institute of Technology.ORCID iD: 0000-0002-5960-9270
Sahlgrenska Academy, University of Gothenburg, Sweden.
2011 (English)In: Paper Sessions, Workshops and Special Meetings: The 56th ICSB World Conference, Stockholm, Sweden, 15th and 18th of June, ICSB , 2011, 170-179 p.Conference paper, Published paper (Refereed)
Abstract [en]

One of the major deficiencies in the existing Small and Medium-sized Enterprises’ (SMEs) performance evaluation models is the fact that they lack a clear coupling to the issue of innovation and its impact on performance. A possible candidate model which could achieve this is the Survival Index Value (SIV) model. The model has a parameter incorporated in its structure, the technology-intake. This parameter can be used as an indicator of the degree of innovativeness of the firm. Previous works using the model looked at general performance without specific focus on innovation activities of the firm and without relating that to aspects of survival and growth. In this paper the aim was to demonstrate the ability of the SIV model to indicate a positive overall performance due to the intensive investment of a selected firm in innovation activities.

The enterprise analyzed, Autoadapt AB, is a Swedish high technology firm working in adapting cars and automobiles to handicapped people. Due to the nature of their activities the firm has a high level of innovation input to be able to solve the complex problems related to usage of cars by disabled people. Both the product development process and managing the activities around it requires a high level of innovativeness and ingenuity. As thus the firm presented a very interesting object to study. The study has a clear significance as there is a need to differentiate the performance of innovation-intensive enterprises from firms who are using less investment in innovation in their activities. This can be done by considering the investment in new technologies both as product development and/or as investing in absorption of external management, product or process innovation. Applying the SIV model to run this analysis can help to demonstrate the need to incorporate the technology intake as an essential component of SME’s performance model.

The results indicated that the SIVmodel is able to predict correctly the performance of the object firm. By having mostly positive survival factor values, which are single data-points, during years of operation, and also having mostly positive survivability coefficient values, which are agglomerate data-points, the SIVmodel proved its abilities. Clearly, the model has a good potential to be developed and fine-tuned even more. The SIV model can be tested further to look at deviations in performance of firms among different sectors and relates that to the innovativeness of whole sectors.

Place, publisher, year, edition, pages
ICSB , 2011. 170-179 p.
Keyword [en]
small and medium-sized enterprises, SMEs, performance evaluation models, SIV model
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:liu:diva-71345ISBN: 978-0-9819028-3-8 (print)ISBN: 0-9819028-3-9 (print)OAI: oai:DiVA.org:liu-71345DiVA: diva2:447512
Conference
ICSB 2011 World Conference Date: June 15-18, 2011, Stockholm Waterfront Congress Center, Stockholm, Sweden
Available from: 2011-10-12 Created: 2011-10-12 Last updated: 2016-05-04Bibliographically approved
In thesis
1. SME Performance and Its Relationship to Innovation
Open this publication in new window or tab >>SME Performance and Its Relationship to Innovation
2011 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Current SME performance models suffer from a number of disadvantages. The models use intensively a business ratio approach, they look at SMEs as a homogenous group, they consider firms to be closed systems, they do not directly incorporate the impact of an enterprise’s innovation activities, and finally they are complex and rely on sophisticated statistical refining methods making them unpractical to use by SME managers. There are four major challenges when one tries to build SME performance models that lack these deficiencies. The first challenge is that the desired performance evaluation model must optimally incorporate both quantitative and qualitative input. The second challenge is that the model must incorporate non-financial input parameters, such as firm size and age (among others), in the performance evaluation models. The third is that the model must consider the variety of SMEs as concerns their business sectors, nationalities, sizes, and ages. The final challenge is that the model must be able to utilize existing limited information available from the SMEs bookkeeping practices in an optimal way.

The thesis addresses three questions related to constructing a better SMEperformance model, namely (1) What are the advantages and disadvantages of the existing models used in evaluating SME performance? (2) What characterizes a comprehensive model for measuring SME performance with acknowledgement of the firm’s innovation activities? (3) How can a firm’s innovation activities be enhanced in relation to the firm’s external environment?

To construct a model that copes with these challenges, I used a literature-based selection of parameters as well as a theory-based selection. I used both a conceptual approach and an empirical approach to discuss and propose a model, the Survival Index Value (or SIV) model, as an alternative to the existing performance models for SMEs.

The major contributions of this thesis to the field of SME performance can be summarized in three outcomes: the SIV model as a new model of SME performance evaluation, the ASPEM as a new tool for strategic utilization of SME performance models, and a new approach to account for innovation in relation to the external environment of the firm using the IBAM tool.

The work adds to the theory of the firm, as it presents a new way of evaluating firm performance. It also contributes to bridging the theory of the firm to organizational theory, by elevating the significance of networking and its impact on SME efficiency.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2011. 127 p.
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 1364
Keyword
SME performance, performance evaluation, firm efficiency, SIV model, innovation capital, system capital, open capital, business models
National Category
Economics and Business
Identifiers
urn:nbn:se:liu:diva-71349 (URN)978-91-7393-219-6 (ISBN)
Public defence
2011-11-28, ACAS, Hus A, Campus Valla, Linköpings universitet, Linköping, 13:15 (English)
Supervisors
Available from: 2011-10-12 Created: 2011-10-12 Last updated: 2016-05-04Bibliographically approved

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