Innovation In Small Firms Research Articles

Is ‘Learning’ the Tipping Point for Innovation in Small Firms

Small firms choose to innovate even in a challenging environment. Unlike stylised facts, innovation by small and medium firms in South Asia is not just technology-based but is rather human resource oriented. Using microdata from the World Bank Enterprise Surveys, we find that learning, research and development, and formal training impact innovation the most. We use a mix of frequentist statistics and machine learning algorithms. Learning is the core factor valid for all streams of innovation. Combining the learning with the other two causes a discernible increase in the chance to innovate. Any improvement in learning in the firm will make strides in innovation. However, to sustain this, there is a need for policies that combine innovation with research and development and with training. An innovation ecosystem that fosters these combinations through collaborations will be impactful. Learning is the tipping point of innovation to have new products and processes, an adaptive organisation and a new marketing strategy.

Investigating Effects of Digital Innovations on Sustainable Operations of Logistics: An Empirical Study

The current investigation seeks to investigate the relationship between digital innovations and the sustainability perspectives of logistics operations. Despite the advancement of technologies for sustainable goals, it is evident that the importance of digital innovation is increasing as a means of enhancing sustainable operations. Current research is examining the determinants of digital innovation in small logistics firms. A new theoretical framework is developed based on technology adoption, technology integration, and sustainable operations by following the diffusion of innovation (DOI) theory. For this study, data were collected from 540 small logistical firms in China. The covariance-based structural equation modeling technique was used to test the proposed hypothesis. The results from the analysis indicate that technology adoption positively affects the environmental perspectives with coefficients = 0.293, social perspectives with coefficients = 0.461, and economical perspectives with coefficients = 0.461 of sustainable operations. Similarly, technology integration positively affects the environmental perspectives with coefficients = 0.512, social perspectives with coefficients = 0.347, and economical perspectives with coefficients = 0.415 of sustainable operations. In conclusion, the implementation of digital technology for innovation can help firms improve their logistical operations in terms of sustainability, which will deliver a robust business improvement according to this research.

Assessing motivational factors and effectual mechanisms’ impact on developing radical innovation in small firms

ABSTRACT Previous research has discussed managers’ motivation in fostering innovation in large firms, but the motivational triggers and mechanisms to develop radical innovation in small firms have received less attention. To fill the gap, this study investigates the effects of autonomous motivations of focal entrepreneurs on radical innovations in small firms and examines the role of effectuation as a mediating mechanism in this relationship. By sampling 275 Canadian small firms and using a quantitative method, we found that autonomous motivation leads to radical innovation. Effectuation positively mediates the relationship, and the impact of effectuation on radical innovation is stronger for optimist entrepreneurs. Our post hoc analysis offers a more precise understanding of the process entrepreneurs in high-tech, versus low-tech, small firms undertake to develop radically innovative products.

Social capital in small industrial firms and its link with innovation

Introduction: social Capital in organizations is an intangible asset that represents the favourable relationships that exist between work teams, within an organization and externally, to different interest groups.Objective: this study examined the link between internal relational social capital (RSC) and external RSC with innovation in small industrial firms in Tabasco, Mexico. There was also an inquiry into how much internal RSC and external RSC explain innovation. Methods: the design was nonexperimental, cross-sectional, descriptive, correlational, and explanatory. Linear regression analysis was used.Results: significant positive relationships was identified between internal RSC and external RSC and innovation. The internal RSC and external RSC contributed significantly to the explaining of innovation. Areas of opportunity were identified for these firms in process design and formal research activities for new raw materials, production procedures and patent generation. Conclusion: to promote innovation, managers of small industrial companies must continue to establish strategies and practices to strengthen RSC

Differential effects of external networks and integrative effects of employee integration on innovation ambidexterity

Innovation ambidexterity is important for firms, but their ability to develop both strategies simultaneously has been conventionally challenged. This challenge is caused by the heterogeneous demands of distinct capabilities and resources of exploratory and exploitative innovations. This paper thus investigates the interplay among internal and external collaborations, ambidextrous innovation, and absorptive capacity in small firms. Using a dataset of 228 Australian firms and applying the PLS‐SEM method, we find that supply chain networks influence only exploitative innovation, and knowledge‐oriented networks influence only exploratory innovation. However, employee engagement directly influences both exploratory and exploitative innovation. Absorptive capacity fully mediates the relationship between employee engagement and exploratory innovation and partially mediates the other relationships. The findings support the argument that balancing exploratory and exploitative innovation in firms is important instead of choosing one strategy over the other. It provides empirical evidence of employee engagement as a common antecedent of ambidextrous innovation and the differential effects of supply chain‐oriented and knowledge‐oriented networks. They will inform innovation strategy decisions of firms primarily on the need to broaden external networks and promote employee engagement in the innovation process and that the benefits of knowledge networks for exploratory innovation are realized fully through absorptive capacity.

The role of small innovative firms in the economic development of the country

The role of small innovative firms in the economic development of the country

Close to competitor? How geographic proximity impacts small firm innovation

ABSTRACT While innovation literature has extensively explored geographic proximity, limited attention has been devoted to geographic proximity with competitor. In this study, we build a framework to elucidate how geographic proximity with competitor impacts small firm innovation, based on the theoretical perspectives of the liability of smallness and knowledge spillovers. We propose that geographic proximity with competitor has a U-shaped relationship on R&D intensity and a moderating effect on R&D intensity-small firm innovation relationship. Moreover, we propose that industrial park entry moderates the effect of geographic proximity with competitor on R&D intensity. Based on a sample of 673 firms from the China Micro and Small Enterprise Survey (CMES), our results underscore the relevance of geographic proximity with competitors for small firm innovation. Our study advances existing literature by contextualising geographic proximity within a competitive framework and investigating the role of geographic proximity with competitor across the two stages of small firm innovation.

Small firm innovation: The role of geographic proximity with competitor

Small firm innovation: The role of geographic proximity with competitor

Exploring the Spatial Intersection of Small Firm Innovation, Urban Form, and Demographics in the Washington, DC, Metropolitan Area

In an increasingly competitive global market for human and financial capital, cities have embraced a variety of strategies to lure investment and incubate lucrative businesses and industries in situ. Among other strategies, it has been suggested that local governments can both attract and catalyze the rise of knowledge-intensive businesses and innovative startups by cultivating dense, walkable, and transit-accessible urban environments where knowledge spillovers might be more likely and creative and knowledge workers can access an abundance of consumption amenities. This intensive case study of the Washington, DC, metropolitan area explores the potential spatial associations between attributes of urban form and innovation productivity as assessed using small business innovation awards. In addition to largely corroborating previous findings indicating a strong positive spatial correlation between small and midsized firm innovation and neighborhood walkability and transit quality, the results suggest the importance of other key supportive amenities including small business incubators or accelerators and local research universities, and highlight socioeconomic and demographic disparities between innovation hot spots and cold spots.

Interfirm collaboration for knowledge resources interaction among small innovative firms

For innovative SMEs, acquiring knowledge resources may serve as an important source to enhance their knowledge base of management practices. In line with the resource interaction approach, an essential way to do this is to participate in informal interfirm networks. Yet, researchers have only given cursory attention to resource exchange in cooperative networks. This study examines the structural, relational, and motivational drivers that lead firms to establish informal networks of relationships to find, exchange, and combine knowledge resources. Following a mixed methods research design using interview data and social network data, the study demonstrates that informal networks play a pivotal role for SMEs to capture valuable resources increasing their knowledge stock, forge organizational standing, and gain social connectivity through reciprocity. This research implies that knowledge as a resource transcends the individual organization, which offers implications for resource interaction in inter-organizational knowledge networks and management practice.

Service innovation in small neighborhood family firms: An advanced approach to enhance employee's performance through social and psychological rewards.

This research study focuses on the employee's job performance of private small firms during the post COVID-19 situation. After the COVID these small family firms try to regain their business, but their efforts are not that much successful. This situation creates a financial crisis in these firms, and they are unable to provide sufficient monetary rewards to their employees. This situation creates unrest among the employees of these small firms. To manage this issue, social rewards and psychological rewards played their role. The study uses a causal research design with a correlational study design in a non-contrived environment. Minimal researcher interference has been assured. AMOS 24 has dealt with the mediation in study design with bootstrap methodology. The study was conducted on 250 employees of different private small family firms across Punjab province using a proportionate stratified sampling technique. A study's finding suggests that top management enhances employee performance in their organizations by introducing the organization's psychological rewards. In contrast, introducing social rewards does not significantly impact employee performance while considering satisfaction and motivation as a mediating variable.

Technological Innovation in Colombian Small Firms: A Gender Multi-Group Analysis

Abstract Background: Studies on innovations have been focused on teams, institutions, and organisations without accounting for the role of the executive’s gender. Objectives: This research aims to analyse how small Colombian firms manage technological innovation from the perspective of the gender of executives. Methods/Approach: A quantitative approach and cross-sectional, non-experimental design through Structural Equation Models with PLS-SEM was used. We self-administered a survey randomly to gather data from 145 small firms’ owners or managers in the department of Bogota, Colombia. Results: The results obtained from multi-group analysis evidence that process innovation has a strong and significant positive impact on the innovation of products, and no significant differences were found when comparing the performance of male executives versus female executives. However, descriptive statistics showed that female executives give more importance to the process and product innovation activities, and they demonstrated to manage a better product innovation performance than male executives. Conclusions: The evidence reveals that female executives are more committed to developing new products and choose to acquire new skills or equipment to develop products and processes. It is, therefore, essential to eliminate organisations’ cultural stereotypes and take advantage of women’s potential in management leadership.

Financial resources for research and innovation in small and larger firms: Is it a case of the more you have, the more you do?

ABSTRACT Our study analyses how firms’ internal financial resources impact their engagement in scientific research, development, and five innovation activities. Furthermore, we investigate how firm-size moderates the impact of firms’ internal financial resources on scientific research, development, and innovation. Our approach provides novel insights regarding whether more money leads to more research and innovation, a topic that remains highly contested in the literature. Our analysis uses a novel unbalanced panel dataset of 1,446 firms in Ireland, over the period 2008–2016. Levels of internal financial resources are found to positively impact larger-sized firms’ (50+ employees) engagement in scientific research, process innovation and product innovation. However, such resources tend to hinder small-sized firms’ (less than 50 employees) engagement in service and organisational innovation. Our research refines innovation theory by reconciling contrasting views regarding the importance of financial resources for research and innovation, and offers novel insights for informing related public policy interventions.

Correction to: The role of collaboration and external knowledge for innovation in small food firms

Correction to: The role of collaboration and external knowledge for innovation in small food firms

The role of collaboration and external knowledge for innovation in small food firms

In this study, we use unique purpose-built survey data to show that small food firms are more innovative when externally engaged. To capture this, we apply a broad classification of innovative activities, including new products, processes, markets, organization, and distribution channels, and examine them against types of external interactions. The analysis, an ordered logit estimation, controls for heterogeneity across firms as well as geographic conditions. The results demonstrate a positive relationship between external interaction and firm innovation, though there are differences across types of external engagement and innovation activities. Product innovation benefits from knowledge from extra-regional firms, while several of the other forms of innovation show a positive relationship with support from regional and municipality boards. Additionally, firm collaboration regarding transports and sales enhances most types of innovation, but there are few relationships of benefit with research-intensive organizations. We conclude that, to be effective, innovation strategies of both the firms themselves and policymakers need to consider local context, access to intra- and extra-regional knowledge sources, and what types of innovation activities the firms are engaged in.

The bright and dark sides of institutional intermediaries: Industry associations and small-firm innovation

Institutional intermediaries are often seen by governments as avenues for increasing firm level innovativeness. This is because they can provide both information and legitimacy, which enable access to government support. Yet, close engagement with intermediaries may also encourage political intervention, especially in the context of emerging markets. Using a unique dataset which consists of the Chinese Micro- and Small- Enterprise Survey (CMES) and the National Economic Research Institute (NERI), we explore the roles of government support and political intervention in the relationship between institutional linkages and firm innovativeness. We find that government support, in the form of tax benefits, and political intervention mediate the relationship between institutional linkages and firm innovativeness. We also find that this relationship is contingent upon the degree of institutional development within which firms operate. Our findings therefore contribute to the burgeoning literature that examines the effects of institutional intermediaries on innovation by exploring both their bright and dark sides. We discuss the implications of these findings for institutional intermediary research, institutional theory and innovation literature and offer advice to policymakers and managers looking at improving innovativeness.

Building capabilities for external knowledge sourcing: Training and Innovation in Small firms

We study how an increase in a firm's internal human capital can support new product development. By adopting training practices, we expect firms to increase the benefits of external knowledge. These benefits may differ between market- and institution-based knowledge sources because each provides distinct expertise to the firm. The study relies on the Community Innovation Survey that tracks firms from twelve European countries in multiple industries in 2006-2014. We find that small firms - those with fewer than 50 employees - attain higher returns to external knowledge when they invest in human capital through training. However, these results only hold for external knowledge that is market-based. Our study links the innovation and strategic human capital literature by illustrating how training helps firms extract the value of external knowledge for new product development.

Assessing the mechanism of barriers towards green finance and public spending in small and medium enterprises from developed countries.

Due to their different abilities to improve financial growth and improve social development, small and medium enterprises (SMEs) have been referred to as the economy's backbone. Small- and medium-sized enterprises are crucial for both high- and low-income nations' financial development. Customers grow more conscious of their purchase choices, preferences, and environmental consequences. The financial opportunities for SMEs in the United Arab Emirates to use green innovation methods to address potential obstacles for increasing green goods, processes, and management are examined in this paper; as a result, it is critical to reduce clean technology adoption constraints in small- and medium-sized businesses. To identify significant hurdles, sub-barriers, and ways to overcome impediments to green innovation in the United Arab Emirates, we apply an integrated decision process. Following a detailed literature analysis and the assistance of twelve experts, six primary obstacles, twenty-five sub-obstacles, and strategies to reduce the barriers were identified. Primary and sub-barriers were assessed using the FAHP. The (FTOPSIS) approach was used to rank the strategies. Five SMEs in the United Arab Emirates are putting the suggested integrated decision model to the test. "Financial investment levels 0.646 to 11 percent growth level," according to the FAHP, are the most significant hurdles to SMEs adopting green practices. This research demonstrated a considerable beneficial association between SMEs and financial development and funding in the United Arab Emirates. According to this study, using research methodologies to provide green innovation in SMEs is the best strategy to overcome green innovation and adoption hurdles in small and medium firms and increasing their economics.

Interaction of Russian business with science: Points of contact and stumbling blocks

The paper assesses the influence of science–business cooperation on the activity of firms, analyzes the factors of interaction of Russian companies with academic organizations and universities in the research sphere, identifies barriers to the development of cooperation between business and science. It has been established that companies whose source of innovation was external R&D were more likely to grow over the past 5 years and to create new products. However, a significant effect of the impact of cooperation with domestic research organizations was found only for the dynamics of exports. It is shown that cooperation with domestic science is more typical for high-tech industries and large Russian businesses. The factor inducing firms to outsource research is a significant level of competition. The high cost of external research services and their insufficient quality hinder the development of scientific and production cooperation. One can point to such a barrier as low interest of research organizations in the volume of orders that firms can offer. This is caused by weak institutional change in the Russian science, preservation of its orientation at the state and major players, which significantly limits the opportunities for institutional interaction of small innovative firms with science. It has been shown that the state quite effectively “pushes” companies to interact with research organizations and universities, but the results of such interaction are often unsatisfactory for firms.

The Role of Innovation in Small and Medium-Sized Family Firms: A Literature Review

This article builds on existing family business research conducted worldwide and embeds the research results in the Czech context to portray the Czech Republic as a critically important context for extending our knowledge on important family firms’ topics. In this article, we present a systematic review and integration of 69 articles published in peer-reviewed journals by Elsevier, Emerald, Wiley and others from 2015 to 2021 in order to answer two research questions: what is the role of innovation in SME family firms and what drives the innovation in family firms? Specifically, the content of the article discusses the new definition of family firm in the Czech Republic; the relationship between innovation and family firm growth; and some contextual factors that might affect the innovations in the Czech SME family firms: ability and willingness paradox, socioemotional wealth, and familiness. The insights of this review are used to develop suggestions for future research in setting the value of family firm where innovation can play an essential role as one of the core value drivers.