Innovative activity in small businesses: Competitive context and organization level

The effect of market type and product technology on innovation was studied using data from 3800 employees in 88 small businesses. Results demonstrate that: (1) organizational context effects on innovative activity are significant at administrative and strategic levels, (2) organizational members in consumer markets initiate more innovations but implement fewer than organizational members in industrial markets, (3) members of service-providing organizations report less innovative activity than those in goods-producing organizations, and (4) operative level employees appear to play a small role in the innovation process.