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1 Introduction 1.4 Key concepts and abbreviations used in the studies Key concepts and abbreviations used in the studies are shown in Table 1. More detailed definitions of innovation, high growth, high success, small and medium sized enterprise (SME) and urban and rural areas are given in Appendix 1. The content and construction of success is explained in Appendix 2, and a more detailed view of the context of the studies is presented in Appendix 3. Table 1: Key concepts and abbreviations used in the studies Concepts Definitions Innovation In some analyses intellectual property rights such as patents, utility models, registered designs and trademarks are used as proxies for innovation. In others, innovation is understood as the intentional introduction and application within a role, group or organisation of ideas, processes, products or procedures, new to the relevant unit of adaption, designed to benefit the individual, group, organisation or wider society. Growth / High growth Sales turnover growth is used as the indicator of firm-level growth. A firm is defined as showing high growth if its turnover grows by at least 20% annually for at least three years. Success / High Success A financial success index (SI), ranging from 0-100 points, is used as a proxy for success of a firm. A firm is classified as highly successful if it scores at least 70 points in each of at least three consecutive years. Performance Firms’ performance is related to innovation, growth and success either separately or in combination. Small and medium sized enterprise (SME) A firm is classified as an SME if its average workforce is < 250 persons, annual turnover 50 Million euro, total balance sheet value 43 Million euro, and capital ownership or voting rights held outside of the organisation 25%. Rural area / Urban area The definitions of a rural or urban area follow the Eurostat NUTS criteria: areas with population densities less than, or at least, 150 inhabitants per km², respectively. Abbreviations Meanings SME Small and medium sized enterprise HGS High growth and highly successful firm IHGS Innovative, high growth and highly successful firm KIBS / T-KIBS Knowledge intensive business service firm / Technology knowledge intensive business service firm RA Regression analysis LRA Logistic regression analysis DA Discriminant analysis 14
2 Literature review and conceptual framework 2.1 Entrepreneurship, innovation and performance research In entrepreneurship and small business literature contemporary discussion still focuses on discovering and explaining differences in the performance of different firms. Performance analysis in this literature has historically concentrated mainly on growth rates, and been based on politico-economic theories such as Neoclassical, Schumpeterian, Post-Keynesian, Marxist and New growth theories. According to Coates (1999) these diverse economic and political approaches provide distinct explanations for the differences in market performance of firms, which are reflected in contrasting descriptions of firms’ growth sources, triggers and barriers, expected growth paths and differences in growth rates (Table 2). 15
Page 3 and 4: Aalto University publication series
Page 5: Author Tomi Heimonen Name of the do
Page 9 and 10: Acknowledgements This dissertation
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Page 13: List of Articles This thesis is bas
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Page 20 and 21: 1 Introduction Figure 1: Framework
Page 22 and 23: 1 Introduction factors that affect
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Page 70 and 71: References Abetti, P. A. (2001). Ac
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References Creswell, J. W. (2003).
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References Golafshani, N. (2003). U
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References Leitch, C., Hill, F., an
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References Pellikka, J. and Laurone
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References Storper, M. (1992). The
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Appendixes Overview: Appendix 1: Ke
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Appendixes High growth When examini
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Appendixes profitability, liquidity
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Appendixes Appendix 1 Continued (Ke
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Appendixes Appendix 2 Construction
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Appendixes Appendix 2 Continued (Co
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not increased compared to Eastern F
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propensity for risk taking (Covin a
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2. Former studies and derivation of
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firm’s annual sales growth (Arund
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H4. Firm success has an impact on t
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other branches in which employment
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and Rao, 2008). Because of the unev
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Table 1. Characteristics of the dat
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firms from other firms. The data in
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Table 2. Logistic Regression analys
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Public R&D funding was shown to inc
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References Achtenhagen, L., Naldi,
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Kanter, R. (1985), “Supporting in
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Appendix 1. Corporate population ch
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Appendix 3. Distribution of personn
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12 Int. J. Business and Globalisati
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14 T. Heimonen and M. Virtanen we u
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26 T. Heimonen and M. Virtanen Tabl
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392 Int. J. Entrepreneurial Venturi
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394 J. Siikonen et al. firms’ gro
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396 J. Siikonen et al. generally re
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398 J. Siikonen et al. determinants
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400 J. Siikonen et al. 3.1 National
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402 J. Siikonen et al. 2 the firm
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404 J. Siikonen et al. 4 Results 4.
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406 J. Siikonen et al. innovation a
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414 J. Siikonen et al. Delmar, F.,
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416 J. Siikonen et al. Oerlemans, L
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418 J. Siikonen et al. Appendix 1 V
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