49,176 research outputs found

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

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    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

    Learning to Innovate in Nigeria's cable and wire manufacturing sub-sector: inferences from a firm-level case study

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    Firm performance is known to be connected to firm-level innovation capability. Innovation capability, in turn, is an output of technological learning. This paper evaluates technological learning among firms in the Cable and Wire manufacturing sub-sector in Nigeria, using a purposively selected case firm. We developed a model of the relationship between the innovative activities of the firm - as evidence of its capability – and its knowledge acquisition methodology. These are discussed within the context of the firm’s stock of human capital. We found low technological innovation capability and high capability for organisational and marketing innovation. Preparedness for technological learning is relatively poor with staff training intensity of 5% and innovation intensity of 0.0075%. We therefore propose stronger interconnectedness of the National Innovation System and creation of industry specific structures that could enhance learning.Technological learning; sub-sector; Cable and Wire manufacturing industry

    Linking Innovative Potential to SME Performance: An Assessment of Enterprises in Industrial South Wales

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    The attraction of inward investment from the UK and from overseas was the main focus of regional development policy in Wales for much of the 1970s and 1980s. Whilst Wales has been particularly successful in attracting foreign enterprise, the contribution of new investors to improving longer term regional economic prospects has been questioned at several levels. With concerns over inward investor stability, embeddedness, and contribution to local value added, increasing weight has been given to the encouragement, and development of innovative indigenous SMEs in the Welsh economy. General and sectoral initiatives to encourage SME development and innovation in Wales have also taken place against a background of historically low levels of new firm formation in the region, together with the presence of factors expected to hinder SME growth including low levels of capital availability. Ultimately, it is hoped that a strongly performing indigenously controlled and innovative SME sector will go some way to improving regional growth prospects, and hence play a role in reducing the GDP per capita gap between Wales and the UK. During the 1990s a series of research and consultancy studies in Wales have been undertaken seeking to audit SME activities, define needs and identify market failures in provision of information and services. These have formed the basis of revised policy and then for new resource directions emanating at the European, regional and local levels. Encouraging innovative activity has been at the forefront of the network of initiatives currently underway in Wales. New initiatives have often been instituted without a clear appreciation of the nature of innovation, and how innovative activities link to innovative outputs and then feed through to improved business performance. This paper examines the link between innovative activity, outcomes and the performance of SMEs in Wales. A range of European, UK and locally developed initiatives in Wales seek to encourage innovative activity in indigenous SMEs. However, it is the contention of this paper that these initiatives have often been instituted without a clear appreciation of how, if, and which innovative activities feed through to improved business performance. The paper offers a general method of assessing the innovative potential (the configuration of management practices, capabilities, internal and external linkages facilitating the generation of appropriation of ideas) of manufacturing SMEs. This then leads on to an examination of how far innovative potential is connected to operational and general business performance. The paper describes how the model was developed and used to assess the innovative potential of a sample of manufacturing SMEs in Industrial South Wales, and how far the innovative potential can be linked to improved operational and business performance. The introduction to the paper reviews current literature on innovation in SMEs, and demonstrates how far recent studies have succeeded in measuring, and then linking innovative inputs of SMEs to innovative outputs and firm performance. The second section builds upon the review to develop a working model of an innovative SME. Innovation is considered not only in terms of new product or process development but more generally as practice. The model reveals the innovative firm as one that identifies, interprets, and applies knowledge effectively, and as appropriate throughout the organisation. The model described represents a synthesis of previous research. Key factors in the model include strategy and the techniques and practices deployed to facilitate the development and appropriation of ideas for innovation. Broadly this focuses on SME commitment to innovation, and management practices supporting this commitment. The third section describes how the model was operationalised into an auditing tool, and then used to assess the innovative potential of a sample of manufacturing SMEs in Industrial South Wales. The fourth section summarises the results from the initial research programme, and in particular, considers whether the unique operating structures usually associated with SMEs hinder or facilitate the adoption of new structures for organisational learning. Moreover the section examines whether the existence of certain configurations of practices coincide with improved business performance and operational efficiencies. The conclusions consider these results in the context of the directions being adopted by current regional SME policy initiatives in Industrial South Wales.

    Knowledge assimilation processes of rapidly internationalising firms: longitudinal case studies of Scottish SMEs

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    <p>Purpose – The accumulation of knowledge and learning by firms has been identified as being critical to their internationalisation. This paper aims to explore the knowledge assimilation processes of rapidly internationalising small to medium-sized enterprises (SMEs).</p> <p>Design/methodology/approach – This is a qualitative enquiry in two stages. First, four case studies were selected from firms that were participating in an internationalisation programme run by Scottish Enterprise, the regional development agency. Data collection involved semi-structured interviews with chief executive officers (CEOs) and programme providers, and archival data. Second, two focus groups were held with six CEOs participating in the programme.</p> <p>Findings – The findings indicate that knowledge sharing is important for rapidly internationalising SMEs and that firms adopted high levels of formality in assimilating knowledge. Two key aspects of formality were identified as important; formal planned events to share explicit and tacit knowledge and the codification of tacit to explicit knowledge. Knowledge may be assimilated less formally by the retention of tacit knowledge as tacit, while utilising elements of formality. The paper finds that learning for internationalisation can be transferred to support domestic growth.</p> <p>Practical implications – It is important for firms to develop appropriate knowledge assimilation processes within their management systems to support internationalisation. The CEO and management team need to take the lead in marshalling commitment to learning processes and in cultivating an organisational culture that is supportive of learning.</p> <p>Originality/value – This research contributes to international entrepreneurship by providing insights into the knowledge assimilation processes employed by rapidly internationalising SMEs to manage the tensions between the need for greater formality to be efficient at learning, and informality to enable speedy decision making.</p&gt

    Heterogeneity in learning processes and the evolution of dynamic managerial capabilities as a response of emergence of biosimilar market: evidence from the Indian pharmaceutical industry

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    This paper examines heterogeneity in the response of Indian firms to the emergence of a new segment in the pharmaceutical generics market – biosimilars. The necessary diversity of the knowledge base and regulatory requirements underlying biosmilar products have created significant technological capability and market access challenges for Indian firms. This is but the latest development which adds to an existing catalogue of challenges including the decline of the traditional generics markets, regulatory hurdles in advanced country markets and failures in managing new drug development. Using case studies of three Indian firms we show that dynamic managerial capability is a key driver of heterogeneity in learning processes involved in acquisition of technological capabilities for biosimilars and market access strategies. It further highlights the important role of pre-existing capabilities in enabling and constraining the development of new biosimilar capabilities

    Do firms rely on sources of information for organizational innovation?

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    The growing literature on knowledge and information has focused on the impact of information sources on technological innovation. Our objective was to explore the use made by firms of internal and external (market, research and generally available) sources of information for their organizational innovation practices? implementation. Furthermore, we studies whether these sources may vary according to whether the firm operates in the manufacturing or service industry. Multivariate probit models? results on 2008 Community Innovation Survey (CIS) data show notable differences between services and manufacturing, for instance that employees? skill levels are more important for manufacturing than for services. Overall, this paper provides strong evidence of the heterogeneity in firms? sources of information to engage in organizational innovation. On one hand, differences appear in the sources of innovation used for the various types of organizational innovation, indicating the appropriateness to differentiate organizational innovation practices rather than using an aggregated measure of organizational innovation. On the other hand, the sources of information vary according to the type of industry, even though some similarities appear. Managerial and theoretical implications for organizational innovation are provided.CIS; manufacturing/services; organizational innovation; sources of information

    Organisational Innovation in the Danish Private Business Sector

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    This paper reviews the first results from a large Danish survey on organisational innovation within the private business sector. The 1,900 surveyed firms are divided in two groups of an almost equal size according to whether or not they have undertaken organisational innovation during the period of 1993-95, i.e. innovative Y-firms and non-innovative N-firms. It appears that the Y-firms to a larger extent than the N-firms employ various types of work organisational principles that facilitate intraorganisational integration and the delegation of authority. The Y-firms find themselves in more competitive environments and are more focussed on the global market than the N-firms and do, to a larger extent, employ functional flexibility and combine technical and organisational innovation in order to meet this challenge. However, 1/3 of the N-firms display organisational characteristics very similar to the Y-firm, and it is hypothesised that this fraction which amounts to approximately 1/7 of the total sample comprises firms which have innovated organisationally in the past, i.e. before 1993. Finally, Y- and N-firms have in common the fact that they have intensified their cooperative relationships with customers and subcontractors. This paper was originally prepared for The Second Meeting of the Nordic Group on Flexible Enterprises, held at Aalborg University, 29-30 August 1996. The data were made available by Frank Skov Kristensen and Kenneth Jørgensen at the Department of Business Studies who performed the necessary computer runs. Comments from Poul Thøis Madsen at the Department of Business Studies are gratefully acknowledged.Organisational learning, innovation, flexibility

    The Flexible Company Innovation, Work Organisation and Human Ressource Management

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    This paper analyses the DISKO survey data on 1,900 firms within the Danish private business sector in terms of an index which classifies the surveyed firms according to smaller and higher degrees of flexibility. The classification reveals a number of important differences between more or less flexible firms. The more flexible firms tend to combine technical and organisational innovation to a larger extent than the less flexible firms and consequently are more inclined to employ new work organisation principles based on the delegation of authority, intrafirm horisontal and vertical integration, and the development of human resources. Similarly, the more flexible firms exhibit a larger inclination to extend their extraorganisational cooperative relationships. Finally, there is a strong positive correlation between increasing degrees of flexibility and increasing firm size, measured in terms of full-time employees. This paper was originally prepared for the International Conference on Changing workplace strategies: achieving better outcomes for enterprises, workers and society, organised by OECD in cooperation with Human Resource Development Canada at Chateau Laurier, Ottawa, 2-3 December 1996. We acknowledge the assistance of Birgitta Jacobsen, who made the data available.Organisational learning, innovation, flexibility
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