Innovation Stimulation Mechanisms through Internal Processes and External Collaboration

Faruk Hadžić, Ema Burić and Admir Čavalić

EconStor Conference Papers from ZBW - Leibniz Information Centre for Economics

Abstract: In the growing and complex modern business environment, the importance of innovation is increasingly coming to the fore, as a key driver and factor that leads to competitiveness, but also to long-term growth of companies. As part of this paper, the mechanism that leads to incentives for innovation through internal organizational processes, as well as external cooperation of companies in Bosnia and Herzegovina, is examined. The paper relies on theoretical frameworks such as resource-based approaches and the ability of companies to be open to innovation, in order to investigate how internal factors and capacities such as research and development functions, knowledge management and external cooperation contribute to innovation results. As part of the research, 304 responses were collected from companies of different sizes and from different sectors. For the statistical analysis of the collected data, regressions, t-tests and correlation were used, which were necessary to test the hypotheses set. The results show that the existence of a research and development department has a significant positive impact on innovation results, especially in small companies, while external cooperation proved to be the most beneficial for medium-sized companies. Internal mechanisms alone have not shown a significant direct effect on innovation, but are suggested to act as complementary factors within broader innovation systems. The findings highlight the existence of different innovation pathways among firms of different sizes, underscoring the need for differentiated strategies and policies. For small firms, strengthening internal R&D capacities appears to be a priority, while medium-sized firms benefit more from external networks and knowledge flows. Large firms, in contrast, require an integrated approach of complex internal and external resources.

Keywords: Innovation stimulation mechanisms; Internal processes; External collaboration; SMEs (search for similar items in EconPapers)
JEL-codes: L26 O31 O32 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/343372/1/ABS6-Corrected-Final.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:esconf:343372

Access Statistics for this paper

More papers in EconStor Conference Papers from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().