Abstract
Purpose Based on a multi-case analysis of small businesses in the metal-mechanical industry in the region of Sorocaba, State of São Paulo, Brazil, the purpose of this paper is to analyze how small businesses (in terms of the owner, business, and influences exerted by the environment) influence innovation. Design/methodology/approach Six case studies are used to analyze the Brazilian metal-mechanical industry. The data are collected through semi-structured interviews and direct observations. In addition, innovations over the previous five years are evaluated in order to establish a comparative pattern between companies. Findings This study examines how facilitating factors are related to the owners of small businesses. These factors include owners’ personal ambitions, the centralization of decisions, and their confidence in their ability to make effective decisions. Factors related to the organization that favor innovation include a simple and streamlined structure and fewer levels of bureaucracy, whereas low capital intensity limit innovation. While some factors related to the environment favor innovation, others have a limiting effect (e.g. short-term horizons and a lack of formal strategic planning). Originality/value The main contribution of this research is to show that innovation is not synonymous with financial investment. Strategic reorganization and the rationalization of productive resources through competitive priorities may lead to innovation in different spheres, helping to increase the competitiveness and strength of the national economy.
Highlights
According to SEBRAE (2017) (Brazilian Micro and Small Business Support Service), in 2015, micro and small businesses represented, on average, 99 percent of establishments and 53.9 percent of the formal jobs generated by non-agricultural private establishments
The Brazilian academic criterion considers micro enterprises to be those with up to 19 employees, small enterprises to be those with 20-99 employees, medium-sized enterprises to be those with 99-499 employees, and large enterprises are those with over 500 employees (SEBRAE, 2003)
The protocol included the following: the main goal of the case study, the subject of the study, innovation and specifics of small businesses, the unit of measurement, their required information (total number of employees, major products, major customers, annual sales, source of capital, employment and personal history of the owners that led to the emergence of the company; general questions about products, processes, organizational and marketing innovation, according to OECD (2005); and specifics of the owner of the small business, those focused on the form of organization, and those focused on the influence exerted by the environment, as per Leone (1999), Terence (2002), and Migliato and Escrivão Filho (2004))
Summary
Downloaded on: 22 August 2018, At: 08:55 (PT) References: this document contains references to 43 other documents. The fulltext of this document has been downloaded 84 times since 2018* Access to this document was granted through an Emerald subscription provided by All users group
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
