Narrow Results

This paper characterises the joint impacts of intra- and extra-organisational contexts on innovation development during the socio-economic crisis in Portugal. The characterisation of these contexts in 309 firms of the Information and Communication Technology services sector allowed for the identification of two profiles via a cluster analysis. These were mostly discriminated by financial resources and clients and not by science and technology activities. Subsequently, these profiles were related to innovation, top managers’ perceptions and expectations for the future. The data shows that under favourable contexts, innovation increases, the firm is perceived to drive innovation and confidence in the companies’ future emerges. In more unfavourable scenarios, innovation is compromised, the environment is perceived to block innovation and confidence is halted. This paper establishes companies’ profiles for the first time in Portugal and suggests that intra- and extra-organisational contexts have to be jointly tackled to foster present innovation and promote future activities.

Exogenous shocks and environmental changes may force small- and medium-sized enterprises (SMEs) to change and innovate their business models. However, their readiness and ability to do so could depend on firm-level characteristics. This paper investigates how two firm-level factors—size and age—impact SMEs’ engagement in business model innovation in response to the COVID-19 crisis. Using World Bank Enterprise Survey data covering 2,115 SMEs from 12 countries, this study shows that the age of an SME is negatively associated with business model innovation. The finding also shows that, contrary to the hypothesis posed in this study, the size of an SME impacts business model innovation positively. The study contributes to the understanding of antecedents of business model innovation in times of environmental change and uncertainty.