The influence of organizational innovativeness on the performance of micro enterprises in the Professional Knowledge Intensive Business Services (P-KIBS) sector

Abstract

This study analyzes the influence of organizational innovativeness on the financial and nonfinancial performance of knowledge-intensive professional business services companies (P-KIBS), specifically a sample of micro-enterprises in the state of Paraná, Brazil. Organizational innovativeness was operationalized with the model of Quandt, Bezerra and Ferraresi (2015), and questions on performance were adapted from the study by Avlonitis, Papastathopoulou and Gounaris (2001) and refer to the financial and non-financial performance of companies. The survey resulted in 193 valid responses, analyzed with structural equation modeling (SEM). The results indicate that organizational innovativeness positively influences both financial and non-financial performance. This suggests that organizational innovativeness is a relevant factor for performande in knowledge-intensive services.