Open Innovation Challenges: Empirical Evidence from Malaysian Small and Medium-Sized Enterprises (SME's)

At present, open innovation (OI) practices have gained traction in all industries, particularly in small and medium-sized enterprises (SMEs). However, only a few Malaysian SMEs practice OI and there is limited literature available on OI practices in Malaysian SMEs. To address this issue, the main objective of the current study is to reveal the challenges of OI and the role of financial constraints in Malaysian SMEs. To achieve this objective, this study implemented the quantitative approach and adopted the cross-sectional research design. Questionnaires were used to collect data from three hundred (300) data managerial staff of Malaysian SMEs. Cluster sampling was used to collect the data. It was found that Malaysian SMEs faced various challenges during the implementation of the OI system. These challenges included motivating spillovers, maximizing internal innovation, and incorporation of external knowledge and intellectual property (IP) management. Moreover, it was found that sufficient finance is needed to resolve these challenges. Hence, this study contributes in the body of knowledge by developing a framework for SMEs to facilitate OI and by identifying the constraints in this framework. Therefore, the current study can be used for Malaysian SMEs to improve their OI system

SMES, Open Innovation and IP Management: Advancing Global Development

[Excerpt] Micro-Small-Medium Enterprises (abbreviated herein henceforth as “SMEs”) are global drivers of technological innovation and economic development. Perhaps their importance has been somewhat eclipsed by the mega-multinational corporate entities. However, whereas the corporations might be conceptualized as towering sequoia trees, SMEs represent the deep, broad, fertile forest floor that nourishes, sustains and regenerates the global economic ecosystem. [. . .] Broadly recognized as engines of economic and global development, SMEs account for a substantial proportion of entrepreneurial activity in both industrialized and developing countries. Indeed, their role as dynamos for technological and economic progress in developing countries is critical and cannot be underemphasized. In industrialized countries, SMEs as major contributors to GDP and private sector employment, in more than a few countries contribute to as much as 60% of the national workforce. In a not unsubstantial portion of developing countries, SMEs are known to employ more than 70% of workforce. [. . .] As foci of technological creativity, SMEs propel long-term growth by facilitating innovation and its diffusion across local, national, regional and international economies. However, innovation immediately begets intellectual property (IP) and the concomitant urgent need to address intellectual property rights (IPR). Hence, to realize the maximum value of innovation, SMEs need to recognize, understand and manage IP in order to protect their IPR and thereby accelerate their innovations towards commercialization; this will, in turn, not only improve their business revenue flow, but ultimately raise the standard of living in their respective countries. IP is thus the essential link in the economic/technological development chain, between creativity/invention, on the one hand, and innovation/commercialization, on the other. SMEs therefore face a number of needs and challenges with respect to IP, IPR and management thereof. This will involve efficient utilization of assets, resources and capital, of which the human/intellectual aspect becomes increasingly important in the emerging global knowledge economy. SMEs in the future will need to recognize the reality and indeed necessity of economies of scale, i.e., the need to “merge” in virtual networks which whereas they might resemble larger firms, are not, i.e., are more like the jellyfish (loosely assemble, organized colony of single-cellular organisms: “SME networks”) and less like the whale (highly structured, systematized, hierarchical organism: the “corporate firm”). This will require sophisticated understanding how open innovation networks, IP management and global economic opportunities can be strategically merged to drive development

European experience and Ukrainian realities in the policy of financial support entrepreneurial sector

Aim/purpose – We want to provide recommendations to bridge the gap in access to financing of the entrepreneurial sector in Ukraine based on the analysis of European experience, EBF approaches, financial funds for SMEs and the current state of the credit market in Ukraine. Design/methodology/approach – We used the general scientific methods of knowledge, conceptual tenets of the theory of market economy, abstract logical analysis and synthesis, induction and deduction, historical (to determine the nature and causes of bank investment in SMEs, refine categories and terms); formalization, systems analysis (to determine factors of investment banking, institutional and legal environment); statistical, retrospective analysis. The results of surveys conducted by the EBF on the issues of support and development of SMEs are used, own research of 120 Ukrainian SMEs, which was conducted during the period from January to July 2016. The nature of the research questions was reinforced by the decision to survey only SMEs. Independent reporting (from entrepreneurs or CEOs) was used to account for both business activity and the external sources of information. Findings – Policy initiatives should primarily be developed at the national level in the field of lending to SMEs based on the European experience and Ukrainian realities; it is necessary to develop an understanding of the need for access to certain types of information; SMEs are the main providers and the most valuable source of credit information. Research implications/limitations – When using the methods of calculation creditworthiness perhaps to take into account the methods for assessing the quality of management, the image of the enterprise, ISO certificates. Originality/value/contribution – Based on the cross-country comparison of the EU and Ukraine, highlight the necessity of focusing on some legal unification of SME lending procedures for the development of a culture of sustainable entrepreneurship on the European continent

Perspectives on innovation within medium-sized firms in Wales

The Welsh economy is heading towards a post-Brexit future with historically lower levels of productivity continuing to leave the country lagging behind the UK average (Huggins and Williams, 2011; Welsh Government, 2017). An understanding of how new models of innovation are constructed and developed are then particularly important for policy makers and academia in Wales. As noted by Baughan (2015), innovation accounts for 25-50% of labour productivity growth

Investigating the technology catching-up trajectory of Chinese Hi-Tech SMEs: an integrated framework from industry-, resource-, and institution-based view

Accepted for WLICSMB 2010Purpose This paper intends to review the literatures on the technology catching-up trajectory of latecomers in order to understand the innovation strategies of Chinese Hi-Tech SMEs (Gu & Tse, 2010; Xie & White, 2006; Chen & Qu, 2003; Lee & Lim, 2001; Kim, 1997). It also tries to construct an integrated framework to investigate their innovation strategies and the impact on organizational performance from the Industry-, Resource-, and Institution-based view (Peng, Wang, & Jiang, 2008). Design/methodology/approach The authors have reviewed papers published in the leading journals in the R&D field and proposed an integrated conceptual framework of innovation strategies of Chinese Hi-Tech firms based on Peng, Wang and Jiang (2008)’s institution-based view framework to examine the innovation strategy from Industry-, firm-specific Resource-based, and Institution-based View Originality/Value This paper pays attention to the institution factors in shaping Chinese SMEs to develop innovative capabilities. Chinese firms have comparative advantages, such as better comprehending Chinese local market, better understanding of local business environment comparing to MNEs. Our paper argues that by developing effective innovation strategies and improving innovative capabilities, Chinese SMEs will be able to survive from the severe competitions from state-owned enterprises and foreign firms in China

Intellectual Property Management in Small and Medium-Sized Enterprises: A Systematic Literature Review

Small and medium-sized enterprises (SMEs) have been prominent in the world economy, contributing significantly to the generation of jobs. Despite the relevance in the economy, SMEs underutilize the mechanisms of protection and appropriation of intellectual property. In order to gather and synthesize strategies, managerial models and good practices related to the intellectual property management in small and medium-sized enterprises (SMEs), this article aims to analyze systematically the literature, as well as to identify important aspects and gaps in existing empirical knowledge. For this, 53 articles from periodicals indexed in the scientific bases Web of Science, Scopus and Science Direct were analyzed. It was verified that there is a pattern of management actions in the scope of SMEs with regard to the protection, appropriation and intellectual property management

Russia: firm entry and survival

Why are there so few new firms in Russia? This paper provides further insights into the specific Russian business landscape and how it impacts the low level of new firm entry. As this paper indicates, internationally comparative data does not provide many clues since in terms of purely formal constraints, Russia fairs comparatively well. However, a deeper analysis uncovers the informal impediments associated with the lack of rule of law, inconsistent enforcement of regulations, regional autonomy and pervasive corruption. These informal constraints form impediments not only for new firm creation but also for firm survival and firm exit. Since not all industries are affected in the same way, this paper includes a comparison between a new and traditional industrial sector: software development and the textile industry

Profiling business support provision for small, medium and micro-sized enterprises in London’s fashion sector

The primary aim of this paper is to build a profile of the business support landscape that exists for fashion SMEs (small and medium-sized enterprises) and MSEs (micro-sized enterprises) in London. In the face of multiple challenges, fashion sector SME/MSEs benefit from the services provided by business support organisations. We have identified 21 fashion support organisations that exist in London. They can be broadly divided into two types of business support organisations: fashion incubators and partial-support organisations, both of which play an equally important role in the sector