Innovation In Small And Medium-sized Enterprises Research Articles

Innovation in European SMEs: Exploring the Influence of Investments, Funding, Knowledge, and Intellectual Assets

Abstract This study examines the factors influencing innovation activities among small and medium-sized enterprises (SMEs) across Europe, utilizing data from the European Innovation Scoreboard 2024. SMEs play a vital role in the European economy but face significant challenges in fostering innovation due to limited resources and funding. The research explores the impact of firm investments, public and private funding, knowledge resources, and intellectual assets on SME innovation. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the analysis found that firm investments and knowledge resources have a significant positive effect on innovation activities. However, public and private funding and intellectual assets showed no significant direct influence on innovation. The findings contribute to a deeper understanding of the complex landscape of SME innovation in Europe, with implications for policy and strategic decision-making. Limitations include the cross-sectional nature of the data and the lack of sector-specific analysis, pointing to areas for further research. Keywords: European SMEs, Innovation activities, Knowledge resources, Intellectual assets, Funding, R&D investments.

Informal human resource management and innovation: Insights from European SMEs

This article explores the relation between informal human resource management practices and innovation performance in European small and medium-sized enterprises (SMEs). We use the resource-based view and the self-determination theory to develop hypotheses on how informal human resource management practices affect innovation performance. The research was based on data from the European Company Survey 2019. The sample consisted of senior managers in charge of personnel, working in SMEs across 28 European countries. Structural equation modelling showed that informal human resource management practices that satisfy employees’ needs for competence and autonomy positively contributed to innovation performance. Fostering employee needs for relatedness, however, negatively affected innovation performance. The study provides theoretical and practical implications, gives insights for managers and policy makers seeking to foster innovation in SMEs and identifies areas for future research.

Evaluation of the Development Effectiveness of Intellectual Property Operation for Science and Technology-based Small and Medium-sized Enterprises: Based on the Research Data of Qinchuangyuan Innovation Driving Platform

Science and technology-based enterprises promote national economic growth and facilitate scientific and technological innovation. This study takes the development of Intellectual Property (IP) operation of science and technology-based enterprises as the research object and constructs a relevant evaluation index system. It also takes the data of 112 small and medium-sized science and technology-based enterprises within the Qinchuangyuan Innovation Driving Platform as an example, conducts statistical analysis and case analysis, and concludes development strategies. The results of the study provide policy suggestions for further strengthening and promoting the development of intellectual property operation by enhancing the efficiency of the IP operation system and policy services for small and medium-sized enterprises (SMEs) in science and technology, promoting the construction of supporting facilities and improving employee satisfaction; as well as simplifying the IP filing procedures, optimizing the financing environment, and establishing a platform for regular evaluation and information sharing to accelerate the transformation of IP; and at the same time, implementing a mechanism for efficient policy fulfillment and departmental linkages to enhance the implementation of the policies and form a high-quality business environment that will help SMEs in their development and technological innovation of SMEs.

Linking Hierarchy Culture, Market Culture and Innovation Orientation: Moderating Roles of Causation and Effectuation

This paper aims to examine the influence of hierarchy and market cultures on firm’s innovation orientation. Also, it explores the moderating roles of the two decision-making logics, which are causation and effectuation on the relationship between hierarchy and market organizational cultures and innovation orientation. The current study extends past research on organizational culture and innovation, by being most likely the first study to examine the extent to which the relationship between hierarchical culture and SME innovation orientation is moderated by causal logic; and the extent to which effectual reasoning moderates the relationship between market culture and the innovation orientation of SMEs. The study utilizes survey data from 206 small and medium sized enterprises (SMEs) in the manufacturing and services sectors of the United Arab Emirates (UAE), that is analyzed using SmartPLS. The results of this study suggest that causation moderates the relationship between hierarchical culture and SME innovation orientation. Furthermore, market culture is only positively related to SME’s innovation orientation when effectuation moderates the relationship.

Adoption of cryptocurrencies in small and medium-sized enterprises: A strategic approach to enhancing financial inclusion and innovation

This review paper explores cryptocurrency adoption's strategic benefits and challenges for small and medium-sized enterprises (SMEs), emphasizing its potential to enhance financial inclusion and drive innovation. The paper overviews cryptocurrencies' history, key characteristics, and current adoption trends in various sectors. The paper examines the importance of financial inclusion and innovation for SMEs through a comprehensive literature review, highlighting how cryptocurrencies can reduce transaction costs, increase access to global markets, and improve financial transparency and security. The analysis also addresses the significant challenges SMEs face, such as regulatory and legal issues, technological and operational barriers, and market volatility. Practical recommendations for SMEs considering cryptocurrency adoption are provided, including steps for compliance, technological integration, risk management, and leveraging new business models. This paper aims to offer a balanced perspective, guiding SMEs in navigating the complexities of cryptocurrency adoption while maximizing its benefits.

Conceptualizing an interpretative framework for energy transition among Italian innovative small and medium enterprises

Energy transition (ET) is becoming essential for most countries worldwide. Companies can only adapt their behaviours to the objectives set by countries’ institutions. A new research stream has thus emerged, which investigates the factors facilitating ET among companies. To date, less attention has been paid to small and medium-sized enterprises (SMEs). One of the greatest difficulties in examining SMEs is their extreme heterogeneity, making results difficult to interpret.This study analyses the factors supporting ET among a specific population of companies in a defined territorial context: the so-called innovative SMEs belonging to a special Italian database. The high propensity towards eco-environmental innovations characterizing these SMEs and their inclination towards sustainable development suggests that their experience represents a prospective path that policymakers could adopt for other types of SMEs.Through a partial least squares analysis of data collected from these SMEs, outcomes show that the only factor supporting the ET is the sensitivity of these economic organizations towards energy issues developed over time; that is, the corporate culture with regard to sustainability.This result is only seemingly surprising under the specific features of these SMEs. Conversely, it presupposes new implications regarding policy measures, questioning the traditional approach based on providing incentives and/or regulations.

Open innovation and internationalization of SMEs: a systematic literature review

PurposeOpen innovation (OI) significantly impacts the internationalization of small- and medium-sized enterprises (SMEs) by connecting them with external resources and accelerating their innovation processes. This study aims to systematically evaluate and synthesize existing knowledge on the role of OI in the internationalization of SMEs.Design/methodology/approachThrough a systematic literature review method, this study critically evaluates 35 articles published between 2003 and 2023, synthesizing existing research from theoretical, contextual, characteristic and methodological perspectives.FindingsThis study identifies theoretical, methodological, characteristics and contextual research gaps and further proposes a research agenda for expanding knowledge in the field. Additionally, it provides an overview of the antecedents of OI adoption, SMEs internationalization outcomes and the influencing mechanisms of OI on SMEs internationalization found in the literature, thereby establishing a foundational knowledge base for future scholars and practitioners in this field.Originality/valueThis review contributes to the existing literature by consolidating current knowledge on the topic and advancing the understanding of the intersection between OI and the internationalization of SMEs.

Innovation in perspective: The role of creativity and open innovation in B2B, B2C, and B2G business models

This study explores how creativity and open innovation practices (inbound and outbound) influence product innovation and innovative performance in small and medium-sized enterprises (SMEs) in Chile, using B2B, B2C, and B2G business models as moderating variables. Through empirical analysis based on a sample of 536 SMEs, we applied structural equation modeling to assess the relationship between creativity, open innovation practices, and their impact on product innovation. The results reveal that creativity significantly impacts product innovation and outbound practices, while inbound practices do not directly affect product innovation. Additionally, it was found that product innovation substantially improves the innovative performance of SMEs. This study contributes to the literature by demonstrating how specific open innovation practices and creativity can be leveraged to enhance innovation in SMEs. Adapting these practices should consider the particularities of different business models to maximize their effectiveness.

Building innovation capability in SMEs through university-business collaboration

Small and medium-sized enterprises (SMEs) often struggle with company innovation, compared to their larger counterparts. A university-business collaboration (UBC) programme in the north of the Netherlands attempts to increase the innovation capabilities of regional SMEs with the support of graduating bachelor students. The 18-months long Hanze Innovation Traineeship Programme (HITP) combines the graduation phase with a consecutive 12-months traineeship, during which students are meant to implement an innovation at the company. We measure the innovation capacity of the participating SMEs at the beginning of the programme and identify strong and weak points within the organisations. We discuss the outcomes of the HITP for SME innovation and further evaluate the programme’s suitability on the intended student learning outcomes.

The SME R&D intensity and product innovation relationship: the mediating role of quality management in the context of a developing country

SMEs engage in product innovation despite their inherent resource constraints, lack of financial slack, and the under‐development of competitively viable strategic configurations around the globe. While progress has been made in identifying the antecedents and capabilities attributed to successful innovation outcomes and the performance of these firms, there remain disparate and often paradoxical observations on the factors that affect SME innovation performance across geographies (i.e. developed vs developing countries) and operational contexts (R&D intensity and quality management practices). This study collected data from 241 resource‐constrained small and medium‐sized enterprises (SMEs) in a developing country (Ghana) to contribute to this debate. The results of structural equation modeling show that quality management mediates the relationship between R&D intensity and product innovation. The results also reveal the effects of knowledge integration and financial slack on the relationship between R&D intensity and product innovation, with a high level of knowledge integration enhancing the effect but a high financial slack hinders it. This study sheds light on a broader range of contextual and financial variables when seeking contingencies of SME product innovation performance within theory and practice.

Rethinking holistic sustainable growth of Malaysian SMEs: a University Helix-Quadruple Bottom Line perspective

Purpose Malaysian small and medium-sized enterprises (SMEs) are critical for economic development and meeting the sustainable development goals (SDGs); however, many struggle to survive in the long term. So, this study aims to present a model for sustainable growth that bridges the gap between desired growth and managerial competencies. By configuring university helix-induced crowdfunding and opportunity recognition competencies with industry helix-driven innovation, the study encourages a quadruple bottom line (QBL) strategy, helping SMEs attain competitiveness for sustainable growth. Design/methodology/approach This pilot study used a sequential mixed methods design and adhered to the pragmatic research paradigm. A survey of 52 SCORE-listed manufacturers yielded quantitative data, complemented by qualitative interviews with 7 SME decision makers. This study used NVivo 10 and SmartPLS 4.0 for the necessary analysis. In addition, an effective triangulation strategy has been implemented to explain causation among selected variables. Findings The findings show that opportunity recognition and crowdfunding are positively associated with SMEs’ ability to grow in a sustainable manner and that exploitative and explorative innovation also mediate those relationships. The qualitative part highlighted key insights for successfully applying this model in Malaysian SMEs. The interview results also suggest that corporate spirituality might help SMEs adopt sustainability-focused practices. Research limitations/implications More research is required regarding both the methods and results of this pilot study. Although conducting a pilot study increases the likelihood of success in the main study, it does not ensure it. Practical implications This study equips Malaysian SMEs with a roadmap for achieving sustainable growth. The obtained findings indicate that Malaysian SMEs that develop strong crowdfunding and opportunity recognition competencies are more likely to achieve innovation-focused long-term survival. In addition, incorporating corporate spirituality can enhance their economic, social and environmental performance. Social implications By supporting more innovation in SMEs, which can improve sustainability-oriented successes and support a healthy economic system, these findings may have a beneficial social change impact. The concept may also act as the foundation for SMEs’ promotion of the SDGs. Originality/value The study uniquely offers a holistic growth model for Malaysian SMEs founded on the helix-QBL understanding that explains a firm’s sustainability-focused competitive advantage.

Research on business model innovation of SMEs in the industrial internet era: building theory from the case of PAYA

Purpose Aside from grappling with technological advancements, enterprises in the industrial internet era are embracing business model innovation to align with the evolution of the industrial internet. However, a gap persists in the existing research regarding the strategies and methods available to small and medium-sized enterprises (SMEs) for executing business model innovation. Therefore, this paper aims to explore the connotation, characteristics and logic of business model innovation for SMEs in the industrial internet era. Design/methodology/approach To explore the business model innovation logic of small and medium-sized enterprises in the era of industrial internet, the paper adopts a longitudinal single-case study approach, with PAYA, a medium-sized enterprise in the electromechanical industry, serving as the subject of research. It systematically analyzes PAYA’s business model innovation, centering on four key elements of the business model: value proposition, value creation, value delivery and value capture. Findings The study proposes two types of business model innovation, namely, “Migration” and “Expansion”, and explains the logic of business model innovation for SMEs in the industrial internet era: faced with a rapidly changing market environment, entrepreneurs put forward the value proposition through the insight of the market environment, then enterprises conduct technological innovation to support the value creation by their own unique experience and knowledge, and then improve the legitimacy of the market by expanding the influence of market acceptance of the new business model to promote the value delivery, and finally capture the economic value and ecological value. Originality/value The types and logic of business model innovation proposed in this paper contribute to supplementing and developing the theory of business model innovation and meanwhile have important reference value for SMEs in the industrial internet era.

Challenges and Countermeasures in Intellectual Property Management for Small and Medium Enterprises

Small and medium-sized enterprises (SMEs) face numerous challenges in intellectual property (IP) management, including limited resources, insufficient expertise, and weak awareness. However, IP management is crucial for enhancing innovation and competitiveness in SMEs. This paper analyzes the main challenges SMEs encounter in IP management and proposes corresponding strategies based on their practical situations. Measures such as raising IP management awareness, strengthening IP protection, allocating resources effectively, utilizing external support, and optimizing management systems are suggested to help SMEs better manage their IP and enhance their market competitiveness. The paper aims to provide systematic and actionable IP management recommendations for SMEs to promote their innovative development.

Board gender diversity in innovative SMEs: an investigation across industrial sectors

PurposeInvestigating the drivers that contribute to the success of small and medium-sized enterprises (SMEs) is crucial for ensuring the overall growth and sustainability of a country. The purpose of this research is to investigate the role of gender diversity on the Board of Directors of innovative SMEs to understand whether the presence of women on boards can improve the performance of such organizations devoted to introducing technological advancements in the product market.Design/methodology/approachThe study adopts a quantitative approach, using a sample of 2,264 Italian innovative SMEs. These companies were selected from non-financial sectors and collected from Analisi informatizzata delle Aziende Italiane (AIDA), a database provided by Bureau van Dijk. An unbalanced panel data involving a period from 2016 to 2021 was used with a total of 12,173 observations.FindingsOur findings suggest that female representation has a negative effect on a company's financial performance. Moreover, the moderation effect of sector growth opportunities confirms this negative influence since in sectors characterized by high growth opportunities, the presence of women on boards was found to have a negative outcome.Originality/valueThe main contribution of the work lies in offering a comprehensive and thorough examination of the business category of innovative SMEs. Specifically, it extends previous research through a focus on board gender diversity of innovative SMEs by examining the impact of the presence of women in their boardrooms on firm performance outcomes. Furthermore, it provides an analysis of this effect, considering both high-growth and low-growth sectors.

Research on the Path of Realizing Transformation and Upgrading of Chinese Small and Medium-sized Enterprises from the Perspective of Management Innovation

Chinese small and medium-sized enterprises (SMEs) are an important force in the development of the national economy and society. Therefore, adjusting the management concept and improving the management level through innovative management mode has become an important task for the survival and development of contemporary Chinese SMEs. This paper is divided into three parts; the first part introduces the theory related to management innovation, the role of management innovation and the driving factors of management innovation. The second part introduces the concepts and theories related to the transformation and upgrading of SMEs. The third part combines the content of the first two parts and summarizes three paths for Chinese SMEs to realize transformation and upgrading under the perspective of management innovation, which are the transformation and upgrading of processing trade to independent research and development, the transformation and upgrading of providing products to providing services, and the transformation and upgrading of product sales to brand marketing, which are the three specific directions. This study explores management innovation in SMEs, aiming to address their transformation and growth challenges by providing practical solutions. The research intends to contribute significantly to the development and success of SMEs within the national context.

Research for understanding and promoting innovation by small-and-medium sized firms in the least developed countries

ABSTRACT With a strong policy focus on small and medium-sized enterprises (SMEs) in the least developed countries (LDCs), there is a demand for information that can inform efforts to promote innovation, technological development and SME development. This paper presents results from a bibliometric analysis of publications on SME development in the LDCs. It was informed by different perspectives on how SME innovation occurs: mainstream emphasis on formal research and development and a framework emphasizing learning and organizational capabilities. The results show that there are low levels of research on SME development in the LDCs and generally there is limited coverage on topics that can inform SME innovation and technological development in SMEs. Our findings highlight the need for further research on SME development in LDCs that is informed by a wide perspective of what innovation and technological development are in these countries and can guide policy efforts.

International entrepreneurship in innovative SMEs: Examining the connection between CEOs’ dynamic managerial capabilities, business model innovation and export performance

International entrepreneurship scholars aim to understand how small and medium-sized enterprises (SMEs) achieve long-term competitive advantage and international success. This paper examines how business model innovation (BMI) helps entrepreneurial and innovative SMEs in improving export performance suggesting that changes in value creation, value delivery, and value capture are required to target international customers effectively. Additionally, drawing on the dynamic managerial capabilities literature, we look at the role of CEOs’ managerial capabilities on BMI. A quantitative study using partial least squares structural equation model (PLS-SEM) was conducted on 189 innovative Spanish SMEs operating in business-to-business (B2B) international markets. Our findings provide new insights into the underexplored relationship between BMI and export performance generating new evidence regarding the mechanisms through which innovative SMEs may improve export performance. We also highlight the positive relevance of CEOs’ managerial social capital (external connectivity) and managerial cognition (empowering leadership) to foster BMI. Finally, managerial implications and future research directions are proposed.

Workplace innovation and work value ethics: The mediating role of leadership in Asian SMEs

Research on the correlations between design leadership, work values and ethics, and workplace innovation is lacking, especially in non-Western regions. This study aimed to investigate the mediating role of design leadership in the relationship of work values and ethics with workplace innovation in Asian small- and medium-sized enterprises (SMEs). Five hypotheses were established to explore the proposed model. Data were obtained from 995 SMEs in Japan, Thailand, China, and Vietnam and were examined using partial least squares analysis. The findings indicated a correlation between work values and ethics and design leadership, with the latter influencing workplace innovation across its four dimensions. This demonstrated the significant association between work values and ethics and workplace innovation. Design leadership was also shown to fully mediate the relationship between work values and ethics and workplace innovation in Asian SMEs. This study provides a deeper understanding of the emerging literature on the associations of design leadership, work values and ethics, and workplace innovation. It emphasizes the importance of design leadership and its correlations with various aspects of workplace innovation and work values and ethics, which have not received adequate attention in the existing literature. Asian SME entrepreneurs can improve the innovation capabilities of their organizations by focusing on and implementing design leadership behaviors, which may thereby help their organizations establish a competitive advantage and promote long-term sustainability.

Entrepreneurial bricolage: A key to innovation for SMEs in a developing economy

Entrepreneurship promotes economic growth, particularly in developing economies where small and medium-sized enterprises (SMEs) are a significant source of employment and economic activity. However, SMEs in developing countries often face various resource constraints and weak institutions, forcing them to engage in entrepreneurial bricolage behavior by creatively combining existing resources. This study explores the relationship between entrepreneurial bricolage and product, process, and marketing innovation among SMEs in the Philippines. Logistic regression estimates reveal that entrepreneurial bricolage has a significant and positive impact on product, process, and marketing innovation. As entrepreneurial bricolage behavior increases, so does the probability of innovation, highlighting the importance of creative problem-solving in settings with inadequate resources. The study also emphasizes the need for policies that support SMEs by providing enabling resources, such as robust infrastructure and reliable communication platforms, to encourage firm innovation that fosters positive spill-over effects on the broader economy.

Small‐ and medium‐sized enterprises' carbon footprint reduction initiatives as a catalyst for green jobs: A systematic review and comprehensive business strategy agenda

AbstractMotivated by the growing attention on climate change, this study provides an up‐to‐date and comprehensive systematic literature review (SLR) on small‐ and medium‐sized enterprises (SMEs) carbon footprint reduction initiatives and green jobs. Based on datasets from databases that include Web of Science, Scopus, ProQuest and Google Scholar, we conducted a SLR of 70 published articles spanning 2012 to 2022. Using VOSviewer and InfraNodus, bibliographic cluster analysis revealed the existence of three clusters namely; the role of green job initiatives and green human resource management in SMEs (cluster 1); green innovation, green Initiatives, green strategy and circular economy in SMEs (cluster 2); carbon footprint reduction initiatives, carbon performance, carbon management and carbon emission in SMEs (cluster 3). We found that SMEs adopt green supply chain, employing energy‐saving strategies, eco‐friendly waste reductions and recycling, circular economy, and green office practices. The study results indicate that these carbon footprint initiatives can lead to green job creation since green competences are required to implement green initiatives. However, value propositions relating to carbon reduction initiatives within SMEs need to be integrated with employee engagement. Additionally, the SLR identifies future research areas that include exploring the association among SMEs carbon footprint, green innovation and green jobs, and strategies to enhance climate change initiatives. Consequently, we call for future research to focus on the design of green jobs tracking and carbon footprint reduction reporting framework to support SMEs' green initiatives. The findings have key policy implications for SME owners, policymakers, practitioners and future researchers.