INNOVATION IN HIGH-TECHNOLOGY SMES: INSIGHTS FROM SINGAPORE

Researchers have examined innovation by small and medium enterprises (SMEs), identified factors that contribute to innovation, and concluded that SMEs tend to be innovative and innovation improves performance. Do these findings hold for high-technology SMEs that are located in a newly industrialized economy? Drawing on the resource-based view of the firm, and literature from entrepreneurship and innovation studies, we develop and test hypotheses using quantitative data collected from a survey. While the results of the study generally support prior research conclusions, there is a surprising finding: top management experience negatively moderates the effect of innovation on performance. Qualitative data from follow-up interviews with CEOs of SMEs helped us understand this finding.