Abstract
Background: This article compares the performance of firms in resource-rich sectors of the Peruvian economy with that of businesses operating in service sectors. Objectives: In so doing, the research seeks to examine whether innovation is managed differently by firms operating in different sectors of a developing-country economy and whether the performance of firms in an emerging economy may be influenced by innovation and learning practices at the sectoral level. Method: Data were acquired through a survey of overwhelmingly middle managers working in Peru. Results: According to the survey findings, the performance of firms in the resource-rich sectors appeared to be uninfluenced by innovation or involvement in organisational learning. In contrast, firms in the service sectors not only exhibited an innovation orientation and involvement in learning but also reported higher sales growth. Conclusion: The study concludes that firms operating in the resource-rich sectors of Peru’s economy do not appear to benefit from engaging in innovation or learning at this point in time, whereas such activities are advantageous for service sector businesses. Therefore, the relationship between innovation, learning and performance may be influenced not just by the type of economy but also by the sector in which the firms are operating.
Highlights
Drucker (1985) posits that post-war business survival rates were likely to be the highest among firms that engaged in innovation. Trott (1998) concludes that innovation in the face of a major change in market conditions will assist firms to emerge from an economic downturn in a much stronger position than their less innovative competitors
The vast majority of studies on organisational learning and innovation management is based on research carried out on firms located in industrialised economies such as the United Kingdom or the United States
The question arises whether theories concerning the relationship between performance, learning and innovation derived from such studies are applicable for organisations doing business in emerging economies
Summary
Drucker (1985) posits that post-war business survival rates were likely to be the highest among firms that engaged in innovation. Trott (1998) concludes that innovation in the face of a major change in market conditions will assist firms to emerge from an economic downturn in a much stronger position than their less innovative competitors. In relation to exploiting innovation, Slater and Narver (1995) posit that this involves organisational learning to acquire and exploit appropriate new knowledge from both within and outside the organisation. The vast majority of studies on organisational learning and innovation management is based on research carried out on firms located in industrialised economies such as the United Kingdom or the United States. The question arises whether theories concerning the relationship between performance, learning and innovation derived from such studies are applicable for organisations doing business in emerging economies. The purpose of this study is to examine this question in the context of companies operating in different sectors of the Peruvian economy. This article compares the performance of firms in resource-rich sectors of the Peruvian economy with that of businesses operating in service sectors
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