Small service firms – creating value through innovation

The debate over the innovative role of small firms has largely been resolved. However, researchers have yet to establish the basis for some small firms being more innovative than others and the impact of their innovations on their industry. There is also an imperative to augment current literature on small service firms. This paper presents a study of small service exporters and differentiates between three groups based upon their innovativeness. Using analysis of variance as the analytical technique, significant differences are found between groups, indicating that the more innovative firms are of greater potential value to their industry. The findings displayed in this paper support the push for innovation strategy as a means of developing new and emerging markets by pioneering small firms.