An exploratory study of innovation effectiveness measurement in Australian and Thai SMEs

The advantages of using a balanced approach to measurement of overall organisationalperformance are well-known. We examined the effects of a balanced approach in themore specific domain of measuring innovation effectiveness in 144 small to mediumsizedcompanies in Australia and Thailand. We found that there were no differences inthe metrics used by Australian and Thai companies. In line with our hypotheses, wefound that those SMEs that took a balanced approach were more likely to perceivebenefits of implemented innovations than those that used only a financial approach tomeasurement. The perception of benefits then had a subsequent effect on overallattitudes towards innovation. The study shows the importance of measuring bothfinancial and non-financial indicators of innovation effectiveness within SMEs anddiscusses ways in which these can be conducted with limited resources.