Technology-based SMEs Research Articles

Interplay between reputation and growth: the source, role and audience of reputation of rapid growth technology-based SMEs

Drawing on resource-based view and signalling theory, this paper presents a comparative case of four (young vs. old; small vs. medium-sized) business-to-business firms to examine how (i.e. through which sources), why (i.e. for which managerial purposes) and for whom (i.e. for which audiences) do technology-based small and medium-sized enterprises build their reputation along the process of rapid growth? The results indicate that in the pre-growth stage product awards as well as technological and financial partners are important sources of reputation for demonstrating technological capabilities and firm sustainability to potential customers especially for young firms. Older firms, in turn, rely on technology partners and acquisitions in the rapid growth stage to convince existing customers that the firms’ can keep up with their customer’s changing needs. Moreover, the reputation gained from the first well-known customer and a focused clientele appear to be two critical antecedents of rapid growth whereas patents do not seem to have a significant reputational role in rapid growth. Our study informs the theory of reputation development of growing technology-based firms by abstracting a more nuanced understanding of stakeholder- and stage-contingent reputation that fosters rapid growth, and provides new insight into the literature on small firm growth.

Competências Para Inovar em Pequenas e Médias Empresas Tecnológicas

The research described in this article aimed at identifying and assessing the skills of SMEs to innovate within technology-based industries, such as the aerospace, automobile and chemical industries, in Vale do Paraiba Paulista. The study was exploratory and descriptive and used a draft instrument to collect quantitative data in the form of the scale proposed by Francois et al. (1999). A complementary qualitative research phase was also performed with the use of semi-structured interviews and content analysis. The results allow us to say that the instruments used to collect data helped to map out a clear framework of innovation skills that might be of use to technology-based SMEs. Activities related to studying innovation skills were observed in the SMEs in the sample, however, these skills can be improved upon. Some recommendations are presented in the conclusion of the article. The results suggest, for future research topics, construction of an in-depth understanding of innovation skills for technology-based SMEs, to demand more detailed consideration of the level of development of these industries; the availability of resources, of how this refines and professionalizes its administration; and the level of technological complexity of its activities, among others.

Development of Technology-Based SMEs, Transfer of Technology, and Innovation Strengthening in Indonesia

SMEs have become a backbone of Indonesia’s economy. An improved innovation capacity of this sector will significantly contribute to the economy growth and accelerate poverty alleviation. Indonesian government has introduced various policies, program and schemes to enhance the competitiveness of SMEs such as providing wider access to financial resources, access to market, technical skill and business development, technology adoption, and procurement. SMEs have also played an important role in the development of energy security such as in the adoption of micro-hydro power technology in various parts of Indonesia. On transfer of technology initiatives, there is an increasing trend in many R&D institution and higher education institutions to systematically develop their capacity to be better service providers to industry. A number of technology intermediaries have been established from institutional level up to national level. Since the last ten years, there has been a growing interest in development of technology business incubation which, amongst other, can become an effective technology transfer mechanism for R&D institution and higher education institutions to further develop the growth of newly technology-based SMEs. Yet, some challenges on this transfer of technology remain. These, among other, include: a need for a sustainable supports to intermediaries until they have minimum capacity to stand on its own, human resources capacity building, and more importantly creation of a conducive ecosystem to new entrepreneurs to access and adopt technology innovation. On national innovation system (NIS/SINAS) strengthening, Indonesia has taken a systematical approach by introducing and implementing various policies and programs. Policies include, for example, inclusion of NIS as a development priority in the mid-term national development plan (RPJM) and institutionalization of policy making body through the establishment of National Committee for Innovation (KIN) who directly responsible to the President of the Republic of Indonesia. Further, a number of initiatives and programs on strengthening of regional innovation system (SIDA) have also been introduced. This includes strengthening capacity of local governments in the development of SIDA in selected regions. In 2011 the government has launched a new initiative, i.e. Master plan of Acceleration and Expansion of Indonesia Economic Development (MP3EI) 2011-2025 where strengthening national human resources capability and science & technology is one of the three strategies. It seems that this political commitment needs to be pushed further to become a national movement. It is therefore necessary to undertake a number of initiatives especially in the area of capacity building of policy makers and executives in central and more importantly in local government. Finally, this paper proposes three proposals, i.e., International Conference Sustainable Energy Engineering and Application: Solar and Biomass Energy, International Seminar and Workshop on Enhancement of Grassroot Innovation Competitiveness for Poverty Alleviation, and strengthening technology business incubators management capacity on specific skills

Indonesia's Policies, Measures, and Mechanisms to Strengthen Innovation and Technology Transfer

An improved innovation capacity of this sector will significantly contribute to the economy growth and accelerate poverty alleviation. Indonesian government has introduced various policies, program and schemes to strengthen its national innovation capacity. On transfer of technology initiatives, there is an increasing trend in many R&D institution and higher education institutions to systematically develop their capacity to be better service providers to industry. A growing numbers of Technology Business Incubators (TBIs) amongst other is aimed at promoting the development of newly technology-based firms/SMEs. Currently there are around 50 technology and business incubators in Indonesia. Likewise, there is an increasing number of developments of Science and Technology Park. In these two types of intermediaries, TBIs and Science and Technology Parks most of them are still in its infancy stages. However, it is interesting to note that there is an encouraging trend in the development of these TBIs and STPs, i.e., an increasing number of TBIs and STPs are initiated by private sectors. TBIs, can become an effective technology transfer mechanism for R&D institution and higher education institutions to further develop the growth of newly technology-based SMEs. Yet, some challenges on this transfer of technology remain. These, among other, include: a need for a sustainable supports to intermediaries until they have minimum capacity to stand on its own, human resources capacity building, and more importantly creation of a conducive ecosystem to new entrepreneurs to access and adopt technology innovation. On national innovation system (NIS/SINAS) strengthening, Indonesia has taken a systematical approach by introducing and implementing various policies and programs. Policies include, for example, inclusion of NIS as a development priority in the mid-term national development plan (RPJM) and institutionalization of policy making body through the establishment of National Committee for Innovation (KIN) who directly responsible to the President of the Republic of Indonesia. Further, a number of initiatives and programs on strengthening of regional innovation system (SIDA) have also been introduced. This includes strengthening capacity of local governments in the development of SIDA in selected regions. In 2011 the government has launched a new initiative, i.e. Master Plan of Acceleration and Expansion of Indonesia Economic Development (MP3EI) 2011-2025 where strengthening national human resources capability and science & technology is one of the three strategies. Implementation of this MP3EI is formulated in the so-called 1 747 innovation initiatives proposed by National Innovation Committee. Finally, this paper proposes two proposals on Study and Workshop on Effective Financing Strategy to Accelerate Technology Transfer to Tec-Based SMEs and Conference and Forum of Asia Pacific Science and Technology Park.

Management capabilities, innovation, and gender diversity in the top management team: An empirical analysis in technology-based SMEs

The paper analyzes the influence of management capabilities on the innovation performance of technology-based SMEs and the role that gender diversity in the top management team plays in this relationship. We use a sample of 205 Spanish SMEs from technology sectors and a hierarchical regression analysis to test our hypotheses. The results confirm that management capabilities affect both product and process innovation positively. In addition, gender diversity in the top management team moderates this relationship positively. In other words, management capabilities have a greater influence on both product and process innovation when the management team is more balanced in number of men and women. This study contributes to better understanding of the factors that explain how management capabilities translate into greater organizational achievements and argues the need to analyze the role of top management teams and their composition more extensively, especially in the context of technology SMEs. The study also contributes new evidence to the small number of studies that analyze the effect of gender diversity in top management teams on innovation.

THE TECHNOLOGY BASED SECTORS IN MEXICO: AN ANALYSIS FOR THE FIRM SIZE AND THE PRODUCTION SCALE

Many authors have remarked the importance of the Technology Based Firm (TBF) inthe last years, in part due to factors like innovation, production scale, technological changeand their flexibility in the production processes to create aggregate value. Instead of thesearguments there is not a definition of the technology based sectors, these sectors and theirtechnological level are described in this article. It is also analyzed the returns of scale and thesize composition of these technological sectors, where it is shown that the technology basedSMEs are as efficient as the large enterprises.

Stress test for a technology credit guarantee fund based on survival analysis

A technology credit guarantee policy has been established to provide financial support to technology-based SMEs with a limited asset base. For an effective technology credit guarantee policy, risk management is essential. In this paper, we investigate a survival model that predicts start-up SMEs’ loan default probability at a given time based on technology attributes along with the economic environment and the firm’s characteristics at the time of the technology credit guarantee fund application. This, in turn, is used for the estimation of the technology fund risk along with a stress test. Our work is expected to contribute to reducing the risks associated with technology financing.

The Empirical Study of SMEs Innovation and Performance Factors in Sichuan

This article aims to assess the factors affecting the relationship between innovation and performance of SMEs, which has been subject to by SMEs Innovation Fund in 1999 and successfully passed the acceptance of funds to support SMEs innovation in Sichuan Province; Data from 174 SMEs in Sichuan Province and investigation of different properties ,factors influencing innovation and innovation performance; different ways of improving the performance of SMEs, all help the government to develop more targeted support of business development innovation policy. According to the research, SMEs innovation activities are mainly limited to family scales, focusing on improving quality, increasing output and technical standards. The study found that technology-based SMEs in Sichuan Province mainly purchase techniques from external sources. Their own innovation is not good. Innovation strategies are adapted to competition have better performance in business, as they have the capability to independently research and adapt to the new marketing economy.

A Hierarchical Latent Variable Model of Leadership Styles using PLS-SEM

The aim of this article is to propose second order hierarchical component models to analyze the two leadership styles (transformational leadership and transactional leadership) for technology-based SMEs. We adopted the two-stage approaches in partial least square-structural equation modelling to examine the appropriateness of hierarchical modelling for both leadership styles. The findings indicate that the conceptual properties of transformational leadership and transactional leadership are matched with reflective-formative type of second order hierarchical component models. In addition, the study offers an alternative avenue to those researchers who are intending to introduce hierarchical component models in modelling leadership styles.

The Impact of Entrepreneurial Orientation on Business Performance: A Study of Technology-based SMEs in Malaysia

The purpose of this study is to determine the impact of entrepreneurial orientation (EO) which is represented by five dimensions and business performance. A simple random sampling technique was adopted in which only hundred technology-based SMEs in Malaysia responded to the survey questionnaire and a total of eighty eight responses deemed to be usable. Descriptive statistical tool was used to analyze the data specifically Pearson product moment correlation and regression analysis.

The Search for Broad Environmental Information and New Product Development Success in Technology-Based SMEs

In this study we examined the relationships between environmental scanning and information sources on new product development (NPD) success in a sample of 112 Korean technology-based SMEs. We found a significant positive relationship between scanning the task sectors of the environment of customers, competitors and technology on the timeliness and creativity of the NPD process. We also found that external personal sources of customers, competitors and suppliers/distributors and internal sources of employees, company library, etc. had a significant positive relationship with NPD success, while the use of professional sources of information such as lawyers, bankers and trade and industry association members had a negative impact on NPD success. We discuss the findings and their implications.

Relationship between Technological Factors and Innovation-Adoption among Technology-Based SMEs in Malaysia

Objective- The purpose of this paper is to identify the relationship between technological factors and innovation-adoption among technology-based SMEs in Malaysia. Methodology/Technique - The study uses questionnaires survey and regression analysis to test the hypothesis in a sample of 172 from two listings which are InnoCert company list and MTDC list of technology companies. Findings This analysis involved the factors that influence innovation adoption, which are the technological factors are categorized into relative advantage, compatibility, complexity, trial-ability, observability, ease of use, and perceived usefulness. The result shows that an innovation-adoption is significantly influenced by technological factors (relative advantage, complexity, ease of use, and perceived usefulness). Novelty - The current state of innovation-adoption among technology-based SMEs in Malaysia is not well understood and clear. Factors that influence innovation-adoption among these technology-based companies need to be explored further since they have distinct characteristics compared to general SMEs. The significant impact of innovation on nation economic growth has propelled many countries, including Malaysia to strengthen their innovation capabilities. Among these SMEs, majority of innovation activities in has been centered on technology-based SMEs. Type of Paper Empirical paper Keywords: , Innovation, Adoption, Innovation Adoption, Organizational Innovation.

Technology Business Incubation as Strategy for SME Development: How Far, How Well in Nigeria?

SMEs form sizeable proportion of enterprises of most developed and rapidly developing countries because of their contribution to GDP, employment and socio-economic development. Given their limitations of size and resources, SMEs need special attention and assistance to survive and compete in the global market place. Technology Business Incubation (TBI) therefore becomes a constructive intervention process to establish a positive environment that can nurture technology-based SMEs for sustainable development. The success of TBI depends on how the incubators are designed and managed. This paper discusses some of the challenges facing TBIs in Nigeria followed by requisite policy measures to resolving them.

Pattern recognition for evaluator errors in a credit scoring model for technology-based SMEs

A credit scoring model for technology-based small and medium enterprises presupposes evaluator objectivity and evaluation consistency; however, there is always some amount of error in any technology evaluation. This can be due in part to the subjective evaluation attributes that comprise part of the credit scoring model. The evaluated values of subjective attributes can vary among evaluators. In this study, we identified the significant characteristics of both evaluator and evaluation teams in terms of evaluation error using a decision tree analysis. Our results can improve the accuracy of a wide range of evaluation procedures for technology financing.

PUBLIC SECTOR SUPPORT AND TECHNOLOGY-BASED SMES IN PERIPHERAL AREAS — THE CASE OF NORTH WALES

Public sector support is important for SMEs due to the finance and stability it offers, the measures are often designed specifically to answer the problems SMEs face and they can help fill gaps in the existing capacities of the firms through the network of expertise the measures allow them to access. There has been an ongoing debate over what effect support services have on the development of assisted firms, and the initial high expectations about the effectiveness of these services now seem overoptimistic, giving rise to more critical examinations of the effectiveness of these services and the institutions involved. With 93 technology-based SMEs in North Wales during a period of relative decentralization of provision of public business services and support in Wales, this study investigates: (1) how technology-based SMEs in North Wales perceive the quality of the services provided by local or national public support organizations; (2) if gaps exist in support then how differently these gaps are perceived by high and low performing firms; and (3) what services they perceive helpful to their business performance, and how differently these services are perceived by high and low performing firms.

The commercialisation decisions of research-based spin-off: Targeting the market for technologies

This paper addresses the commercialisation decisions of research-based spin-off firms (RBSOs), focusing on the case of companies specialising in the production and sale of intellectual property—a model of entrepreneurial behaviour increasingly frequent in science-based fields and that research-based spin-offs may be more prone to adopt, given their specific characteristics. Combining insights from the economics of technological change and the strategic management of technology literature, we discuss the conditions that can influence firms' ability to operate in the market for technology, and advance some theory-driven hypotheses regarding key factors that are likely to determine it – nature of knowledge being exploited, appropriability conditions, location and degree of control upon complementary assets and institutional setting of origin – as well as their impact upon firms' decisions. These hypotheses are tested on a group of 80 European RBSOs, using data collected specifically for this purpose, on the basis of questionnaire-based interviews. This research adds to recent work on the determinants of the commercialisation strategy of technology-based SMEs, but by focusing on a particular group of companies – the RBSOs – we also take into consideration some distinctive characteristics of this group, which introduce some specificity in their innovative behaviour.

Demand-orientated policy on leading-edge industry and technology: public procurement for innovation

The world economic environment has dramatically changed through IT revolution, which leaves the government to seek a new role in the driving seat for setting industrial and technological policies. In order to maintain the competitive edge derived from scientific and technological innovation it is important for the government to adopt the demand-side policy towards commercialisation of technology-based SMEs and start-ups. The Japanese government has discussed the significance of an 'innovation orientated new approach for public procurement'. Through drawing comparisons with procurement strategies employed by the US, the UK and the Netherlands the paper proposes: (1) intermediary professional actors to appraise prototype technologies; (2) interactive dialogues between suppliers and users before tendering; (3) fair and transparent competition focussing on new social and economic values of emerging technologies are the absolute essence of public procurement for innovation.

Rompendo obstáculos para a implantação de escritório de projetos em empresa de base tecnológica

Esse artigo apresenta o caso da criação de um escritório de projetos (Project Management Office - PMO) em uma indústria médica de médio porte que passou a desenvolver produtos para o setor espacial. Descreve como a entrada no novo segmento impulsionou a adoção de práticas de gestão de projetos (GP) e como o equacionamento das tensões resultantes dessas práticas levou ao surgimento de um PMO na empresa. Apresenta levantamento com membros das equipes de projeto, os quais foram questionados quanto à efetividade das práticas de gestão sobre os resultados dos projetos. Os dados confirmam a bibliografia quanto a tensões próprias de PMEs de base tecnológica com relação à introdução de ferramentas gerenciais e adicionam duas contribuições: descrevem como o equacionamento das tensões existentes sobre o PMO pode contribuir para sua consolidação e demonstram que a introdução de atividades de caráter mais operacional pode melhorar a forma pela qual os times de projeto avaliam o desempenho do PMO.

The impacts of networking on the innovation process inside industrial cluster firms: experiences from China

This paper deals with the development of innovation capabilities inside industrial cluster firms and discusses the relationship between: firms networking with other firms and external partners inside their clusters; and the effects of this networking on the innovation performance of the cluster firms. The paper reports findings from a research study conducted in China's Zhejiang Province, where 212 out of 336 enterprises based in six industrial clusters responded to our questionnaire survey. Our study shows that 'strategic networking' inside clusters improves both product innovation performance and overall speed of the innovation process inside technology-based SMEs, which ultimately effects competitive performance.

Technology-based SMEs in the Go ¨teborg Region: Their Origin and Interaction with Universities and Large Firms

LINDHOLM DAHLSTRAND Å. (1999) Technology-based SMEs in the Go ¨teborg region: their origin and interaction with universities and large firms, Reg. Studies 33 , 379‐389 . This paper investigates the local origins and continued regional interaction of a group of new technology-intensive Go ¨teborg SMEs. The results are based on an original survey of 52 such firms. It finds that these Go ¨teborg SMEs were almost exclusively established as spin-offs by founders who were previously working for another local firm or university. Local links and relationships ‐ especially with the previous employer and with Chalmers University ‐ were initially important for their development. With time, however, the importance of such links has tended to decline, and instead wider national relationships are becoming more important. LINDHOLM DAHLSTRAND Å. (1999) PMÈ a la pointe de la technologie situées dans la région de Göteborg: gene ¤ se et synergie quant aux universités et aux grandes entreprises, Reg. Studies 33 , 379-389 . Cet article cherche à examiner la genèse locale et la synergie continue, régionale d'un groupe de nouvelles PMÈ a la pointe de la technologie situées dans la région de Göteborg. Les résultats proviennent d'une enquête menée auprès de 52 entreprises de ce type. Il s'avère que ces PME-l à ont été établies presque exclusivement par des créateurs d'entreprise qui travaillaient autrefois pour une autre entreprise ou une université locales. Les liens et relations locaux - surtout quant à l'employeur antérieur et à l'Universite ´ de Chalmers - s'avèrent importants pour leur de ´marrage. Cependant, l'importance de tels liens a eu tendance à diminuer sur le temps, et à leur place on attache progressivement plus d'importance aux relations nationales plus larges. LINDHOLM-DAHLSTRAND Å. (1999) Kleine und mittlere, auf Technologie gestu ¨tzte Unternehmen in der Go ¨teburger Region: Entstehung und Verflechtung mit Universita ¨ten und Großfirmen, Reg. Studies 33 , 379‐389 . Dieser Aufsatz untersucht Ortsursprung und anhaltende regionale Verflechtung einer Gruppe neuer, technologisch intensiv arbeitender kleiner und mittlerer Unternehmen in und um Go ¨teborg. Die Ergebnisse beruhen auf einer eigens dazu durchgefu ¨hrten Untersuchung von 52 Firmen dieser Art. Er stellt fest, daß diese kleinen und mittleren Go ¨teburger Unternehmen fast ausnahmslos als Nebenprodukt der Ta ¨tigkeit von Gru ¨ndern etabliert wurden, die bis dahin fu ¨r andere Firmen oder Universita ¨ten am gleichen Ort arbeiteten. Verbindungen und Beziehungen am Orte-besonders zu ehemaligen Arbeitgebern und der Chalmers Universita ¨t waren anfa ¨nglich fu ¨r ihre Entwicklung wichtig. Im Laufe der Zeit hat die Bedeutung solcher Verknu ¨pfungen meist abgenommen, wa ¨hrend weiterverzweigte stattdessen im ganzen Lande an Bedeutung zunehmen.