Simple approaches on how to discover promising strategies for efficient enterprise performance, at time of crisis in the case of SMEs : Voronoi clustering and outlier effects perspective

TL;DR

This study investigates how pre-crisis innovation investments influence post-crisis performance of SMEs, using Voronoi clustering and outlier analysis to identify effective strategies based on Italian stock market data.

Contribution

It introduces a novel application of Voronoi tessellation and outlier analysis to identify promising innovation strategies for SMEs during crises.

Findings

Positive investment rates correlate with better performance outcomes.

Outliers represent the most effective innovation strategies.

Performance responses to innovation are not uniform across companies.

Abstract

This paper analyzes the connection between innovation activities of companies -- implemented before a financial crisis -- and their performance -- measured after such a time of crisis. Pertinent data about companies listed in the STAR Market Segment of the Italian Stock Exchange is analyzed. Innovation is measured through the level of investments in total tangible and intangible fixed assets in 2006-2007, while performance is captured through growth -- expressed by variations of sales or of total assets, -- profitability -- through ROI or ROS evolution, - and productivity -- through asset turnover or sales/employee in the period 2008-2010. The variables of interest are analyzed and compared through statistical techniques and by adopting a cluster analysis. In particular, a Voronoi tessellation is implemented in a varying centroids framework. In accord with a large part of the literature, we find that the behavior of the performance of the companies is not univocal when they innovate. The statistical outliers are the best cases in order to suggest efficient strategies. In brief, it is found that a positive rate of investments is preferable.