Why do small businesses innovate? Relevant factors of innovation in businesses participating in the Local Innovation Agents program in Rondônia (Amazon, Brazil)

Carlos André da Silva Müller,Váldeson Amaro Lima

doi:10.1016/j.rai.2017.07.007

Abstract

This study aimed to present the most relevant cognitive factors that influence innovation in activities of small businesses participating in the Local Innovation Agents program in Rondônia (Amazon, Brazil). Cognitive maps were used as a methodological approach for the study of a group of small businesses within the context of the project. The results indicated the existence of 14 relevant factors mentioned by the businesses assessed, highlighting two influence factors mentioned by all participants in some casual relationship, therefore, a consensus: “need for survival” and “knowledge and experience”. These factors indicate, respectively, motivation and innovation process management of the companies studied. The different relations among the factors allowed identifying two groups within the program. They differed primarily in regard of willingness to innovate and development of learning levels that influence innovation activities resulting from the interaction with the program's agents.

Highlights

Innovation that results in an endogenous economic development is an alternative paradigm to the neoclassical mainstream economic theory
Data collection was performed in the natural environment of the individuals under study, which allowed theoretical and interpretive analyses and assumptions about the cognitive factors of innovation in a group of businesses participating in the Local Innovation Agents (LIA) program, leading to the design of the cognitive maps (Creswell, 2010, 2013; Flick, 2009)
Considering the objective of this study, i.e., to present the most relevant cognitive factors influencing the innovation activities of entrepreneurs of small businesses participating in the Local Innovation Agents (LIA) program in Rondônia (Amazon state, Brazil), the results indicated the existence of 14 relevant factors pointed out by the studied companies

Summary

Introduction

Innovation that results in an endogenous economic development is an alternative paradigm to the neoclassical mainstream economic theory. Recent studies on innovation (Carvalho, Silva, Póvoa, & Carvalho, 2015; da Silva Néto & Teixeira, 2011, 2014; Desidério & Popadiuk, 2015; Rodrigues et al, 2014) have focused on presenting the types of innovations performed, their development processes or measurement mechanisms, but neglected to discuss the reasons why a business decides whether or not for the development of innovation activities This lack of debate is even more evident when the study locus are micro and small businesses (MSBs), which have received little attention in innovation studies despite political and economic incentives and the important role they play in economic and social development (Forsman, 2011; MDIC, 2013)

Objectives

Methods

Findings

Discussion

Conclusion