The Inter-Relationship between Innovation, Growth & Profitability of Germany's Online-Based SMEs

An Empirical Study

Masterarbeit , 2014 , 135 Seiten , Note: 1.3

BWL - Sonstiges

This research aims to understand how innovation affects and is affected by a firm’s financial performance. It focuses particularly on the Internet industry and collects both quantitative and qualitative data from online-based SMEs in Germany. The results reveal that among online-businesses, the size of the company in terms of revenue is positively related to the level of innovation, whereas lower profitability and smaller absolute earnings seem to encourage higher levels of innovation. Companies with higher revenues are found to earn generally lower profit margins. It was also found that companies that experienced a reduction in annual revenue have a tendency to increase innovation levels. No significant effects were found between innovation levels and change in profitability. Similarly, no significant effects were found between change in profitability and growth. Among online-based SMEs, this study highlights the importance of innovation as an instrument employed by distressed companies to improve their performance. It also shows that there may be a tendency for the companies that are more profitable to focus less on innovation.

Inhaltsverzeichnis

• Abstract
• 1. Introduction
  • 1.1 Research Problem
  • 1.2 Research Questions and Objectives
  • 1.3 Outline of the Thesis
• 2. Background
  • 2.1 The Internet as a Platform for Business
    • The Impacts on SMEs
    • Rough History and some Drawbacks
    • The Future: The Internet of Things
    • Online-Based Business and Revenue Models
  • 2.2 Internet Business in Germany
    • The Online-based Company
    • Current Situation in Germany
    • SMEs in Germany
  • 2.3 Definitions & Dimensions of Innovation in Online-based Businesses
    • What is Innovation?
    • Drivers of Innovation
    • The Innovation Process
    • Innovation Management for Success
    • Innovation Types and Classifications
• 3. Literature Review & Hypotheses Development
  • 3.1 Literature on Innovation-Size & Innovation-Profitability Relationships
  • 3.2 Literature on Size-Profitability Relationship
  • 3.3 Literature on Innovation-Growth & Innovation-Profitability Improvement Relationship
  • 3.4 Literature on Growth - Change in Profitability Relationship
  • 3.5 An Overview of Past Literature
• 4. Analytical Framework & Conceptual Model
  • 4.1 Measurement Model
    • Innovation
    • Growth
    • Profitability
• 5. Methodology
  • 5.1 Mixed-methods Research
  • 5.2 Quantitative Research through Online Survey
    • Subjects and Participants
    • Materials and Tools
    • Design
    • Procedure
  • 5.3 Qualitative Research
    • Participants
    • Materials
    • Design
    • Procedure
• 6. Findings
  • 6.1 Survey Data
    • Graphical Representation of Collected Data
  • 6.2 Summary of Regression Analysis
  • 6.3 Interview Findings
    • Expert Interviews
    • Short Interviews
• 7. Analysis and Discussion
  • 7.1 Theoretical Conclusions
    • H1: Innovation-Size
    • H2.1: Innovation-Profitability
    • H2.2 Innovation-Earnings
    • H3: Profitability-Size
    • H4: Growth-Innovation
    • H5: Change in Profitability-Innovation
    • H6: Growth-Change in Profitability
  • 7.2 Limitations
  • 7.3 Recommendations for Further Study
• 8. Conclusion
• 9. Notes
• 10. Bibliography
• 11. Appendices
  • Appendix A
  • Appendix B
  • Appendix C
  • Appendix D
  • Appendix E

Zielsetzung und Themenschwerpunkte

This MBA thesis aims to empirically investigate the interrelationship between innovation, growth, and profitability of online-based small and medium-sized enterprises (SMEs) in Germany. The study seeks to understand how innovation influences the growth and profitability of these businesses, and how these factors interact with each other.

• The impact of innovation on the size and profitability of online-based SMEs in Germany.
• The relationship between growth and innovation in online-based SMEs.
• The influence of innovation on the change in profitability of online-based SMEs.
• The role of online business models and revenue streams in driving innovation and growth.
• The challenges and opportunities faced by online-based SMEs in Germany in terms of innovation and growth.

Zusammenfassung der Kapitel

Chapter 1 introduces the research problem, outlining the significance of studying the interrelationship between innovation, growth, and profitability in online-based SMEs in Germany. It also presents the research questions and objectives of the study, providing a clear roadmap for the subsequent chapters.

Chapter 2 delves into the background of the research, exploring the evolution of the internet as a platform for business, its impact on SMEs, and the specific context of online-based businesses in Germany. It also defines and discusses various dimensions of innovation in the context of online-based businesses.

Chapter 3 presents a comprehensive literature review on the relationships between innovation, size, growth, and profitability. It examines existing research on the impact of innovation on firm size and profitability, the relationship between size and profitability, and the influence of innovation on growth and profitability improvement. This chapter also develops hypotheses based on the reviewed literature.

Chapter 4 outlines the analytical framework and conceptual model used in the study. It defines the key variables – innovation, growth, and profitability – and explains how they are measured. This chapter also provides a clear understanding of the theoretical underpinnings of the research.

Chapter 5 details the methodology employed in the study, including the mixed-methods approach, the quantitative research through an online survey, and the qualitative research through interviews. It describes the participants, materials, design, and procedures used in both quantitative and qualitative data collection.

Chapter 6 presents the findings of the study, analyzing the data collected through the online survey and interviews. It includes graphical representations of the survey data, a summary of the regression analysis, and a detailed discussion of the interview findings.

Chapter 7 analyzes and discusses the findings of the study, drawing theoretical conclusions based on the empirical evidence. It examines the relationships between innovation, size, growth, and profitability, and discusses the implications of the findings for online-based SMEs in Germany. This chapter also acknowledges the limitations of the study and provides recommendations for further research.

Schlüsselwörter

The keywords and focus themes of the text include innovation, growth, profitability, online-based SMEs, Germany, business models, revenue streams, internet, digitalization, entrepreneurship, and economic development. The study explores the impact of innovation on the size and profitability of online-based SMEs in Germany, examining the relationships between these factors and their implications for the growth and success of these businesses.

• Hochschule: Hochschule für Wirtschaft und Recht Berlin (Institute of Management Berlin)
• Veranstaltung: MBA Transatlantic Management - Innovation
• Note: 1.3
• Autor: Yi Ling Wong (Autor:in)
• Erscheinungsjahr: 2014
• Seiten: 135
• Katalognummer: V284157
• ISBN (eBook): 9783656840305
• ISBN (Buch): 9783656840312
• Sprache: Englisch
• Schlagworte: Innovation, size, profitability, growth, performance, SME, Mittelstand, Internet business, online-based business, e-commerce, e-business