Structural characteristics of innovation strategies of firms: institutional and sectoral embeddedness

Abstract

The existing research provides little empirical evidence regarding the actual relationship of innovation strategies of firms and wider institutional and sectoral environments. Therefore, the paper is aimed at assessing the linkages between the characteristics of firms’ innovation strategies and the firms’ sectoral and institutional environment. Hence, the analysis is focused on two different national institutional environments – Lithuania and Switzerland – and, correspondingly, two industrial sectors – laser industry and contact centres. As a result, the innovation strategies are analysed and compared; then, entropy method is used in order to level down the external effects. The results reveal the sectoral and institutional specifics of the investigated firms; in addition, they highlight the aspects of innovation strategies which are most likely to fall under the firm’s internal control despite the external institutional and sectoral environment