The Role of Innovation Intermediaries in Collaborative Networks of Small and Medium-Sized Enterprises

The major challenge of European Union’s agricultural industry is to ensure sustainable supply of quality food that meets the demands of a rapidly growing population, changing dietary patterns, increased competition for land use, and environmental concerns. Investments in research and innovation, which facilitate integration of external knowledge in food chain operations, are crucial to undertaking such challenges. This paper addresses how SMEs successfully innovate within collaborative networks with the assistance of innovation intermediaries. In particular, we explore the roles of innovation intermediaries in knowledge acquisition, knowledge assimilation, knowledge, transformation, and knowledge exploitation in open innovation initiatives from the wine industry through the theoretical lens of absorptive capacity. Based on two case studies from the wine industry, we identified seven key activities performed by innovation intermediaries that complement SMEs’ ability to successfully leverage external sources of knowledge for innovation purposes. These activities are articulation of knowledge needs and innovation capabilities, facilitation of social interactions, establishment of complementary links, implementation of governance structures, conflict management, enhancement of transparency, and mediation of communication. Our in-depth qualitative study of two innovation intermediaries in the wine industry has several important implications that contribute to research and practice

The Potential of Critical E-Applications for Engaging SMEs in E Business: A Provider Perspective

YesAgainst a background of the low engagement of SMEs in e-business this paper investigates the emergence of, and potential for, critical e-applications defined as `an e-business application, promoted by a trusted third party, which engages a significant number of SMEs by addressing an important shared business concern within an aggregation.¿ By a review of secondary data and empirical investigation with service providers and other intermediaries the research shows that such applications can facilitate the e-business engagement of SMEs. There are three key findings, namely: the emergence of aggregation specific e-business applications; the emergence of collaboratively based `one to many¿ business models; and the importance of trusted third parties in the adoption of higher complexity e-business applications by SMEs. Significantly this work takes a deliberately provider perspective and complements the already considerable literature on SME IT adoption from a user and network perspective. In terms of future research the importance of a better conceptual understanding of the impact of complexity on the adoption of IT by SMEs is highlighted

Aggregation and the Role of Trusted Third Parties in SME E-Business Engagement: A Regional Policy Issue

YesIt is against the background of low engagement by SMEs in e-business that this paper seeks to highlight the potential importance of aggregation and of the role of trusted third parties in facilitating higher levels of involvement. The paper is based on an ongoing SME e-business research programme and reports on some recent research on SMEs that were using high complexity e-business applications and explores the extent to which the research findings could address the core concern of low engagement. This qualitative case study based research includes analysis of data collected from 13 community intermediaries, acting as trusted third parties. It concludes that the role of community intermediaries appears to be central to the adoption of critical e-aggregation applications provided by service providers. For policymakers, this important role of critical e-aggregation applications in facilitating e-business engagement by SMEs has emerged as part of this research but there is limited evidence of policy initiatives that reflect this

Assessing sustainability support to small and medium sized enterprises (SMEs)

The aim of this paper is to evaluate qualitatively the impact of sustainability support to Small and Medium Sized Enterprises (SMEs) where quantitative results are often difficult to appraise. Many of these organisations require sustainable business support to enable them to start or build their business concepts on sound sustainable platforms. Many SMEs are unable to quantitatively evaluate the benefit which they have received from support programmes because they are in the project planning stage or have limited financial data. Without a form of evaluation, support networks often cannot retain funding support. This paper is based on the grounded theory approach to analyse qualitative data received from participants in a sustainability support programme. Research on such programmes to SMEs is scant. This paper proposes the use of qualitative data collection and its evaluation to be considered when making the case for funding such programmes, along with quantitative data when availabl

Towards a conceptual framework of enterprise support for pro-environmental small and medium-sized enterprises: A contextualised review of diverse knowledge domains

Whilst there are well-established bodies of knowledge about enterprise support and the role of entrepreneurial learning for SMEs (Small and medium-sized enterprises) in general and a growing body of evidence relating to environmental capabilities, green/eco-innovation, sustainable supply chains and green skills for SMEs in particular, there is little empirical and peer reviewed literature that address approaches to enterprise support specifically focussed on the needs of the growing number of pro-environmental SMEs. This study undertakes a contextualised review of diverse knowledge domains to identify the key features of enterprise support for pro-environmental SMEs. In doing so, the paper plots the knowledge journey of experienced academic programme providers, from the initial design of an enterprise support programme for pro-environmental SMEs, through a thematic review of academic, grey and other related literature and finally presents a propositional and normative conceptual framework that proposes eight key features of enterprise support for pro-environmental SMEs. The resulting ‘framework for action’ aims to offer a practical tool for providers of pro-environmental enterprise support to review and improve their own provision, an analytical frame for other researchers in this field and a benchmark for SMEs seeking guidance on their pathway to net-zero business performance

Governing and accelerating transformative entrepreneurship: exploring the potential for small business innovation on urban sustainability transitions

The alluring yet nebulous concept of transformative change is increasingly gaining traction in conversations about pathways to more sustainable futures. As such, new conceptual tools are needed to illuminate variety of actors, interests, and capacities at play in potentially radical experiments. This paper draws upon multi-level governance theory, sustainability transitions scholarship, and sustainability entrepreneurship literature, to interrogate the transformative potential of small and medium-sized enterprises (SMEs). We (1) identify characteristics of SMEs that might make them relatively more able to produce radical innovations, (2) explore dimensions of the broader socio-political context that influence the likelihood of this potential to be translated into action in urban spaces, and (3) discuss implications of these dynamics for transformative sustainability governance

Open innovation in SMEs and the role of the external network: A systematic literature review

Ever since Henry Chesbrough coined the term in 2003, the number of studies exploring the new paradigm of open innovation (OI) has grown exponentially, with researchers investigating and exploring the application of open principles in an array of industrial and geographical contexts. Despite this growing interest from the scientific community as well as practitioners, our understanding of the implementation of open principles from an SME perspective remains, to a large extent, underdeveloped. In particular, uncovering how the SME can best exploit and manage their external network to facilitate both exploration and exploitation activities has, thus far, been largely neglected. Therefore, an exploration of the implementation and successful management of OI projects in smaller firms from a network perspective, through a systematic review and assimilation of the current body of extant studies seems a timely and necessary step, in order to form a roadmap for a future research agenda. Consequently, the aim of this paper is to shed light on the antecedents and outcomes of successful OI network management in small firms. Systematic analysis of 51 extant studies reveals that many barriers associated with implementing OI in SMEs often referred to as liability of smallness, can be overcome by the effective network management, coupled with the implementation of an open culture. Openness can also be seen to be positively related to business model flexibility and adaptability. Results though, remain unclear on the exact role of the intermediary and whether entrepreneurial capacity, trust, increased social interaction and goal alignment among the SME and their network partners, as well as network unity and conflict mitigation/resolution can be described as a driver for, or an outcome of successful open projects. Therefore, these potential relationships between openness and managerial capacity are proposed for further empirical testing and analysis. The paper concludes by presenting a map for future research, incorporating a series of propositions suggested during the analysis and consolidating these issues into a framework of suggestions for future research.Series: Working Papers / Institut für KMU-Managemen