Advanced
search

To read this content please select one of the options below:

Relationship between growth and R&D intensity in low‐tech and high‐tech Portuguese service SMEs

Paulo Maçãs Nunes (Management and Economics Department, Beira Interior University, Covilhã, Portugal and CEFAGE – UE (Center for Advanced Studies in Management and Economics), Évora University, Évora, Portugal)
Zélia Serrasqueiro (Management and Economics Department, Beira Interior University, Covilhã, Portugal CEFAGE – UE (Center for Advanced Studies in Management and Economics), Évora University, Évora, Portugal)
Luis Mendes (Management and Economics Department, NECE (Núcleo de Estudos em Ciências Empresariais), Beira Interior University, Covilhã, Portugal)
Tiago Neves Sequeira (Management and Economics Department, Beira Interior University, Covilhã, Portugal and INOVA, Nova University of Lisbon, Lisbon, Portugal)

Journal of Service Management

ISSN: 1757-5818

Article publication date: 22 June 2010

2551

Abstract

Purpose

–

The purpose of this paper is to determine if the relationship between growth and research and development (R&D) intensity is of a different nature in the context of low‐ and high‐tech Portuguese service small to medium‐sized enterprises (SMEs).

Design/methodology/approach

–

The System Analysis of Iberian Balance Sheets database is used. Based on the European Union's recommendation, L124/36 (2003/261/CE), the authors select 764 low‐tech and 139 high‐tech Portuguese service SMEs for the period 1999‐2006. As method of analysis, panel data are used.

Findings

–

A negative relationship between growth and R&D intensity for low‐tech Portuguese service SMEs is identified, whatever the level of R&D intensity. For high‐tech Portuguese service SMEs, a quadratic U‐shaped relationship between growth and R&D intensity is identified. Moreover, the authors find that relationships between growth and determinants are of a special nature in the context of high‐tech Portuguese service SMEs with high levels of R&D intensity.

Practical implications

–

It is recommended that as far as possible the managers/owners of low‐tech Portuguese service SMEs, and especially high‐tech ones with non‐high levels of R&D intensity, hire qualified human resources and make more continuous investment in R&D. The authors advise managers/owners of high‐tech Portuguese service SMEs with high levels of R&D intensity to establish stable relationships with creditors. Policy‐makers should increase financial support directed, above all, to innovative Portuguese service SMEs.

Originality/value

–

The paper is pioneering in presenting different relationships between growth and R&D intensity in the context of low‐ and high‐tech service SMEs.

Keywords

Citation

Maçãs Nunes, P., Serrasqueiro, Z., Mendes, L. and Neves Sequeira, T. (2010), "Relationship between growth and R&D intensity in low‐tech and high‐tech Portuguese service SMEs", Journal of Service Management, Vol. 21 No. 3, pp. 291-320. https://doi.org/10.1108/09564231011050779

Publisher

:

Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

Related articles

Manage cookies

We’re listening — tell us what you think

Join us on our journey