Innovation in Micro and Small Enterprises: Resources and Capabilities

Renata Braga B De Vasconcelos,Joséte Florencio Dos Santos,Jackeline Amantino De Andrade

doi:10.1590/1982-7849rac2021190106.por

Renata Braga B De Vasconcelos, Joséte Florencio Dos Santos + Show 1 more

Open Access

https://doi.org/10.1590/1982-7849rac2021190106.por

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Abstract

ABSTRACT Objective: the article aims to identify the relevant resources for the composition of managerial and transactional capabilities in the context of micro and small enterprises (MSEs). Method: through a literature review, the resources associated with the innovation were identified: leadership, people management, information and knowledge, relationships with clients, suppliers, and society, and results. The resources were collected and measured using a structured questionnaire made available by the Local Agent for Innovation program, applied to 447 MSEs in the state of Pernambuco, between 2015 and 2017. Confirmatory factor analysis was used to verify how these resources contribute to the composition of capabilities. Results: the results demonstrate that the managerial capability is composed of the relationship with society and suppliers, leadership, the sharing of information and knowledge, and people management. Transactional capability is made up of the relationship with customers and the results obtained by the firm. Conclusions: although MSEs have restrictions on access to technologies, their organizational resources seem to contribute to the development of innovation capability and to obtain competitive advantage.

Highlights

Innovation can be understood as a driver of the economic performance of productive sectors, which leads to the economic development of nations through a process of creative destruction (Schumpeter, 1984, 1988)
Given the gaps verified in the literature, it is worth asking: how can micro and small enterprises (MSEs) become capable of being innovative? What resources can they obtain to develop their innovation capability? In this perspective, this article aims to identify the relevant resources for the composition of management and transaction capabilities in the MSEs context
The financial results are necessary to develop and operate innovation (Bayarçelik et al, 2014), and the expected profit and growth act as drivers for this activity (Laforet, 2011). Such studies are consistent with Schumpeter (1988), who understands that credit plays a crucial role for innovation

Summary

Introduction

Innovation can be understood as a driver of the economic performance of productive sectors, which leads to the economic development of nations through a process of creative destruction (Schumpeter, 1984, 1988) For this reason, technology and access to financial resources are essential to innovate (Schumpeter, 1984; Pavitt, 1984). Even if the technology is relevant, it is not enough to promote innovation, because innovation is the result of a complex process that depends on a set of resources and skills (Teece, 2007) In this perspective, some authors have tried to understand how the innovation capability develops (Lawson & Samson, 2001; Raghuvanshi, Ghosh, & Agrawal, 2019; Zawislak, Alves, Tello-Gamarra, Barbieux, & Reichert, 2012). There is no consensus on its operationalization (Iddris, 2019), studies show that technology is relevant, but organizational management plays an important role. Zawislak, Alves, Tello-Gamarra, Barbieux and Reichert (2012), for example, suggest that the innovation capability can be understood by technology and operations capabilities, and by management and transaction ones

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