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Using capital theory to explore problem solving and innovation in small firms

Jane Glover (School of Business and Economics, Loughborough University, Loughborough, United Kingdom)
Donna Champion (School of Business and Economics, Loughborough University, Loughborough, United Kingdom)
Kevin Daniels (Business School, University of East Anglia, Norwich, United Kingdom)
Grahame Boocock (School of Business and Economics, Loughborough University, Loughborough, United Kingdom)

Journal of Small Business and Enterprise Development

ISSN: 1462-6004

Article publication date: 15 February 2016

1221

Abstract

Purpose

The purpose of this paper is to investigate how small firms work at a micro-level, applying Bourdieu’s Capital Theory to give insight into the way individuals use the social and cultural capital at their disposal, to innovate and solve problems.

Design/methodology/approach

The authors applied qualitative methods to explore problem solving and innovation activities at the micro-level in small firms, using interviews and thematic analysis.

Findings

The findings reveal that, compared to firms with lower levels of social and cultural capital, firms which possess higher levels of social and cultural capital have a higher success rate in problem solving and are more likely to engage in innovative activity. Social and cultural capitals complement and reinforce one another in small firms, for example an enhanced ability to utilise networks (social capital) allows small firms to access a greater diversity of knowledge (cultural capital).

Originality/value

Little is known about how different forms of capital are utilised in the day-to-day operations and problem solving of small firms: the application of Bourdieu’s Capital Theory offered an original frame in which to explore these activities.

Keywords

Acknowledgements

Part of this work was supported by the former East Midlands Development Agency, UK.

Citation

Glover, J., Champion, D., Daniels, K. and Boocock, G. (2016), "Using capital theory to explore problem solving and innovation in small firms", Journal of Small Business and Enterprise Development, Vol. 23 No. 1, pp. 25-43. https://doi.org/10.1108/JSBED-02-2014-0033

Publisher

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Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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