Knowledge management, absorptive capacity and organisational culture: A case study from Chinese SMEs

Copyright © 2008 Inderscience Enterprises Ltd. This is the author's accepted manuscript. The final published article is available from the link below.Based on the analysis of an innovative medium sized enterprise from mainland China, this paper investigated the Knowledge Management (KM) issues by focusing on its KM enablers and process. This paper attempts to investigate how Chinese enterprises absorb knowledge from external sources; how they developed culture to facilitate Knowledge Management Processes (KMPs) and what major challenges they raise for the future by looking at the case study of a Chinese Small and Medium-sized Enterprises (SMEs). The case study indicates that Chinese enterprises emphasised knowledge acquisition and the capacities of knowledge absorption, application, creation, sharing and integration as vital to sustaining competitive advantage for these firms. Corporative organisational culture also has significant impact on the KM in those enterprises

Effective knowledge transfer to SMEs

EIM examined to what extent small and medium-sized enterprises may be stimulated to absorb more know-how in respect of for instance new process technology to use that know-how for in-company business process upgrading. The study focuses primarily on the cluster of businesses hardly involved in technological innovation, and examines to what degree knowledge about marketing and know-how management is employed to stimulate the absorption of know-how among retarded businesses.

Determinants of innovativeness in SMEs. disentangling core innovation and technology adoption capabilities

This paper studies innovativeness in SMEs from a set of innovation indicators at the firm level, capturing various types of innovation (product, process, organisational, and marketing innovations) and the level of innovativeness in these firm’s developments. The article identifies two separate dimensions in the innovativeness of Spanish SMEs, using factor analysis techniques. One dimension is associated with the capabilities for core/internal innovation and the other with the capabilities for the adoption of technology. The paper shows that significant differences exist in the personal and organisational factors that favour these two dimensions. The entrepreneur’s motivation, business planning, and cooperation in R&D activities constitute significant factors when considering the core dimension of a firm’s innovativeness, but have no effect on the firm’s capabilities for technology adoption. However, the use of external consultancy services seems to have no significant effect on the core dimension of the innovativeness of anSME, whereas it is a relevant factor for its technology adoption. Furthermore, it is shown that the entrepreneur’s education plays a more significant role in the core dimension of a firm’s innovativeness than in its capabilities for technology adoption. Depending on the policy objectives, these differences should lead to the application of specific policy approaches when an attempt to stimulate innovation in SMEs is made

Innovation Capacity of Enterprises – Selected Issues

Artykuł poświęcony jest przeglądowi literatury naukowej dotyczącej pojęć i obszarów oraz specyfiki zdolności innowacyjnej przedsiębiorstw. W drugim punkcie artykułu omówiono pojęcie oraz rodzaje zdolności innowacyjnej przedsiębiorstw. Zdolność innowacyjna przedstawiana jest w literaturze naukowej jako koncepcja złożona, wieloczynnikowa i wieloobszarowa, obejmująca wiele przyczyn o charakterze wewnętrznych i zewnętrznym organizacji, ze szczególną rolą dynamicznych zdolności, które umożliwiają zarówno podejmowanie innowacji o danym charakterze i skali, jak i ich efektywną realizację. W trzecim skoncentrowano się na wybranych zagadnieniach związanych ze specyfiką kształtowania zdolności innowacyjnej, a w szczególności: motywach, modelach i strategiach kształtowania zdolności innowacyjnej w zależności od cyklu życia produktu, charakteru innowacji, roli przedsiębiorczości w kształtowaniu zdolności innowacyjnej przedsiębiorstw. Czynniki te mogą mieć różny wpływ na wynik innowacji, zwłaszcza gdy są rozpatrywane w izolacji lub w różnych częściach organizacji bez uwzględnienia synergicznych relacji między nimi

Universities, knowledge networks and regional policy

As knowledge becomes an increasingly important part of regional innovation and development processes, the role of universities has come to the fore of regional innovation and economic development policy The objective of this paper is to critically review and assess the structure and function of knowledge networks and modes of engagement between universities and the business community in regional settings and contexts. It is argued that while regional knowledge networks and modes of engagement between universities and the business community are becoming increasingly prevalent, it is often difficult to ascribe investments in knowledge-based infrastructure to improved regional competitiveness. It is concluded that in a globalised knowledge environment the engagement between universities and regional business communities must be based on a mutual understanding of the role of both network and market-based knowledge interactions

Awareness Of Smes On The Eu Funds Financing Possibilities: The Case Of Split-Dalmatia County

Micro, small and medium-sized enterprises (SMEs) are considered to be the engine of the European economy. In EU SMEs make up more than 99% of all companies and provide around 75 million jobs. They are a key source of job creation and stimulation of entrepreneurial spirit and innovation and are therefore essential for fostering competitiveness and maintaining employment in the EU. Yet SMEs often have problems in raising funds to finance fixed investments and inventory and working capital. SMEs mostly use internal sources while the most important external sources of SMEs are bank loans, which are not easily accessible. Hence, one of the priorities of the European Commission is stimulating SMEs through EU funds and programs in order to enable SMEs development and finally to contribute to economic growth. SMEs sector also dominates the economic structure of Croatian economy and they have similar financing problems. However, Croatia in period 2014 – 2020 have at disposal a total amount of 10.676 billion of euros from European structural and investment funds, of which 8.397 billion are aimed for cohesion policy objectives and 470 million euros are aimed for the development and competitiveness of SMEs. Besides, EU programs COSME and HORIZON 2020 are intended to provide direct support to SMEs and to create a favorable environment for their development. However, even though the number of successful project applications for small and medium-sized enterprises in the total share of Croatian project applications is relatively high, fund absorption has not reached satisfactory levels. Using the sample of Split-Dalmatia County’s SMEs, this study finds out reasons for low absorption capacity from SMEs point of view: SMEs are interested in funds from European Union, but are not sufficiently familiar with their availability i.e. funds at their disposal, especially programs COSME and HORIZON 2020; SMEs state that they know how to apply for EU funds but considered the procedure as complicated and demanding regarding documentation, and that the needed knowledge and know-how for proposal is beyond their scope; SMEs are not satisfied with the cooperation with state institutions, especially Ministry of Regional Development and EU funds and Croatian Chamber of Economy. We point out four main conclusions: (1) SMEs are not enough aware of EU financing possibilities; (2) additional promotion of EU programs directly to SMEs is required; (3) additional education of SMEs regarding project proposal and documentation is needed and (4) more proactive policy of state institutions and cooperation with local authorities is expected. Finally, greater awareness and professional help might be a key in strengthening the SMEs, whose entrepreneurial spirit and innovation process is a prerequisite for economic growth and development. Keywords: SMEs, awareness, EU funds and programs, absorption capacity, Split- Dalmatia Count

The relationship between knowledge management, innovation and firm performance: evidence from Dutch SMEs

This article investigates the relationship between knowledge management (KM), innovation and firm performance of smaller firms (less than 100 employees), based on a panel of more than 400 Dutch firms. Regression analyses explain the variations in sales turnover growth from various measures of KM strategies. We distinguish between KM input, throughput and output (or innovation) strategies. We find that KM input strategies related to knowledge acquisition are positively related to sales turnover growth. In contrast, we do not find a relation between KM throughput and KM output (innovation) measures and firm performance. The results emphasize the importance of both knowledge absorption and knowledge creation to the success of innovative efforts in small firms. This is an updated version of Scales-paper N200322.

The development of absorptive capacity-based innovation in a construction SME

Traditionally, construction has been a transaction-oriented industry. However, it is changing from the design-bid-build process into a business based on innovation capability and performance management, in which contracts are awarded on the basis of factors such as knowledge, intellectual capital and skills. This change presents a challenge to construction-sector SMEs with scarce resources, which must find ways to innovate based on those attributes to ensure their future competitiveness. This paper explores how dynamic capability, using an absorptive capacity framework in response to these challenges, has been developed in a construction-based SME. The paper also contributes to the literature on absorptive capacity and innovation by showing how the construct can be operationalized within an organization. The company studied formed a Knowledge Transfer Partnership using action research over a two-year period with a local university. The aim was to increase its absorptive capacity and hence its ability to meet the changing market challenges. The findings show that absorptive capacity can be operationalized into a change management approach for improving capability-based competitiveness. Moreover, it is important for absorptive capacity constructs and language to be contextualized within a given organizational setting (as in the case of the construction-based SME in the present study)

Networking Innovation in the European Car Industry : Does the Open Innovation Model Fit?

The automobile industry is has entered an innovation race. Uncertain technological trends, long development cycles, highly capital intensive product development, saturated markets, and environmental and safety regulations have subjected the sector to major transformations. The technological and organizational innovations related to these transformations necessitate research that can enhance our understanding of the characteristics of the new systems and extrapolate the implications for companies as well as for the wider economy. Is the industry ready to change and accelerate the pace of its innovation and adaptability? Have the traditional supply chains transformed into supply networks and regional automobile ecosystems? The study investigates the applicability of the Open Innovation concept to a mature capital-intensive asset-based industry, which is preparing for a radical technological discontinuity - the European automobile industry - through interviewing purposely selected knowledgeable respondents across seven European countries. The findings contribute to the understanding of the OI concept by identifying key obstacles to the wider adoption of the OI model, and signalling the importance of intermediaries and large incumbents for driving network development and OI practices as well as the need of new competencies to be developed by all players.Peer reviewe

The effectiveness of the innovative process implemented by SMEs. The results of the empirical research

The essence and the importance of innovation in the process of building the competitiveness of enterprises is widely described in the economic literature. But analysis of innovative activity of companies very often indicates that the innovations introduced to the market do not bring the expected benefits. This leads to the conclusion that very often the innovation activities of enterprises are inefficient and detailed analysis of such cases may identify the key barriers to implementing effective innovation. The modern model for innovative activity indicates that one of the key factors for the success of the innovative activity of enterprises is the proper implementation of introducing new solutions to the market. The problem of the diffusion of innovation involves a number of issues related to the process of spreading and promoting innovation in the market. It is widely recognized that competencies in the area of innovation diffusion are a key determinant of the innovative potential of a company. The author put forward the following research hypotheses: Innovative activities carried out by the surveyed companies are inefficient. The purpose of this paper is to present the problems associated with the effective diffusion of innovation in the SME sector in Poland, with particular emphasis on the barriers in this area. Commonly available statistical data, the author's empirical research results on innovation potential and results of other studies conducted by the University of Szczecin were used to prepare this publication.Preparation and printing funded by the National Agency for Research and Development under project “Kreator Innowacyjności – wparcie dla Przedsiębiorczości akademickiej