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Article
Publication date: 4 September 2019

Stephen Oduro

Much of the scholarly works on open innovation have significantly highlighted the application of the model in high-tech industries in the developed world. However, how the…

1603

Abstract

Purpose

Much of the scholarly works on open innovation have significantly highlighted the application of the model in high-tech industries in the developed world. However, how the phenomenon applies in low-tech small and medium-sized enterprises (SMEs) in developing countries is still marginal and lacks substantive research. This study aims to draw on the network theory of innovation to examine the open innovation orientations of low-tech SMEs in an emerging market context, particularly Ghana.

Design/methodology/approach

The research design used was a qualitative–quantitative approach: the qualitative phase of the study, involving 31 low-tech SMEs, used a multiple case approach through semi-structured interviews and analyzed the interview responses using NVivo statistical tool; the quantitative phase, including 706 low-tech SMEs, also used a survey questionnaire approach and descriptively analyzed data collected using SPSS statistical tool.

Findings

Results disclose that the low-tech SMEs’ employment of the open innovation model are preponderantly driven by commercialization purposes, knowledge acquisition motives, financial motives and strategic motives, whereas their open innovation approaches include inbound strategies (collaboration with suppliers, co-creation/customer immersion), outbound strategies (IP licensing out) and coupled strategies (strategic alliances, contract manufacturing, and joint ventures). Moreover, the findings show that the SMEs’ preferred open innovation partners include suppliers, customers, private universities and non-industry, in that order. Finally, results show that the low-tech SMEs’ open innovation advantages include market gains, strategic gains, knowledge gains, operational gains, financial gains and network gains, whereas their open innovation challenges colossally were collaboration barriers and organizational barriers.

Practical implications

These findings purvey valuable perceptiveness for managers, academicians and policymakers alike; they highlight the importance of open innovation to low-tech SMEs, proven strategies, challenges involved and the mechanisms for effective and efficient adoption of the open innovation model.

Originality/value

The value of this study reclines in the extension of open innovation research from high-tech industries in the advanced world to low-tech SMEs in emerging economies. Results of the study enrich the knowledge and understanding of how the theoretical model of open innovation is adopted and implemented by the low-tech SME sector in emerging economies.

Details

Journal of Science and Technology Policy Management, vol. 10 no. 3
Type: Research Article
ISSN: 2053-4620

Keywords

Article
Publication date: 22 June 2010

Paulo Maçãs Nunes, Zélia Serrasqueiro, Luis Mendes and Tiago Neves Sequeira

The purpose of this paper is to determine if the relationship between growth and research and development (R&D) intensity is of a different nature in the context of low‐ and…

2551

Abstract

Purpose

The purpose of this paper is to determine if the relationship between growth and research and development (R&D) intensity is of a different nature in the context of low‐ and high‐tech Portuguese service small to medium‐sized enterprises (SMEs).

Design/methodology/approach

The System Analysis of Iberian Balance Sheets database is used. Based on the European Union's recommendation, L124/36 (2003/261/CE), the authors select 764 low‐tech and 139 high‐tech Portuguese service SMEs for the period 1999‐2006. As method of analysis, panel data are used.

Findings

A negative relationship between growth and R&D intensity for low‐tech Portuguese service SMEs is identified, whatever the level of R&D intensity. For high‐tech Portuguese service SMEs, a quadratic U‐shaped relationship between growth and R&D intensity is identified. Moreover, the authors find that relationships between growth and determinants are of a special nature in the context of high‐tech Portuguese service SMEs with high levels of R&D intensity.

Practical implications

It is recommended that as far as possible the managers/owners of low‐tech Portuguese service SMEs, and especially high‐tech ones with non‐high levels of R&D intensity, hire qualified human resources and make more continuous investment in R&D. The authors advise managers/owners of high‐tech Portuguese service SMEs with high levels of R&D intensity to establish stable relationships with creditors. Policy‐makers should increase financial support directed, above all, to innovative Portuguese service SMEs.

Originality/value

The paper is pioneering in presenting different relationships between growth and R&D intensity in the context of low‐ and high‐tech service SMEs.

Details

Journal of Service Management, vol. 21 no. 3
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 9 August 2011

Ko‐Min Kevin Tseng and Rhona E. Johnsen

The purpose of this paper is to empirically examine the influence of the internet on the internationalisation process and international customer relationship interactions of UK…

4801

Abstract

Purpose

The purpose of this paper is to empirically examine the influence of the internet on the internationalisation process and international customer relationship interactions of UK manufacturing small to medium‐sized enterprises (SMEs). The paper is positioned at the interface of the literature on international entrepreneurship and the internet.

Design/methodology/approach

The paper discusses the findings from multiple case studies of ten UK manufacturing SMEs from a variety of UK sectors, producing high‐, medium‐ and low‐tech offerings. In‐depth interviews with directors or managers of the SMEs were conducted. Individual and cross‐case analysis was carried out using coding frameworks to reduce and analyse the data and capture patterns in the findings.

Findings

The findings reveal how the influence of the internet in the internationalisation process and international customer relationship interactions differed in the high‐, medium‐or low‐tech SME categories. The influence of the internet differed across three main dimensions: the way in which the SMEs invested in and used different internet applications for internationalisation and customer relationship support, the SMEs' perceptions of the internet as a tool to support communication with international customers; the SMEs' reliance on more personal and interactive forms of contact with international customers.

Practical implications

The results demonstrate that the level of technological advancement of an SME's offerings has an important bearing on how these firms adopt the internet in their internationalisation process and gain advantages in their international customer interactions. The managerial implications of the study are relevant for manufacturing SMEs, their customers and government agencies involved with SMEs.

Originality/value

This research is amongst the first empirical contributions to examine the themes of the internet, internationalisation and international customer interactions in UK manufacturing SMEs and to highlight the importance of the level of technological advancement of an SME's offerings in distinguishing the ways in which the internet is used by entrepreneurial small firms in their internationalisation process.

Details

Journal of Small Business and Enterprise Development, vol. 18 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 22 June 2021

Sujinda Popaitoon, Tanyanart Yanpiboon and Chutikarn Tapjarern

The purpose of this study is to explore knowledge absorptive capacity (ACAP) (both potential and realized) and new product development (NPD) in bipolar entrepreneurial small- and…

Abstract

Purpose

The purpose of this study is to explore knowledge absorptive capacity (ACAP) (both potential and realized) and new product development (NPD) in bipolar entrepreneurial small- and medium-sized enterprises (SMEs).

Design/methodology/approach

In response to recent calls for research on knowledge ACAP and NPD in entrepreneurial SMEs, particularly in different contexts, this research aims to answer a specific question: What are the characteristics of ACAP (both potential and realized) and the salient issues concerning working complementarily between both types of ACAP to foster NPD in bipolar entrepreneurial SMEs (in this case, three new low-tech and three established high-tech cases)? The authors conduct case study research based on cross-case and within case analyses to answer the question.

Findings

The findings show that, in the established high-tech cases, realized ACAP plays an outsized role in developing new products and prior-related knowledge acts as a precondition for capturing useful knowledge from external sources (potential ACAP). On the contrary, in the new low-tech cases, potential ACAP is the key driver of NPD, so external knowledge from network ties becomes a crucial source of acquiring new knowledge, along with entrepreneurs’ level of skill at applying useful knowledge (realized ACAP) to achieve NPD.

Research limitations/implications

On the basis of the bipolar entrepreneurial SMEs (i.e. established high-tech and new low-tech ventures), the characteristics of entrepreneurial SMEs (i.e. firm’s age, size and level of technology) affect the different roles of realized and potential ACAP in driving NPD successes. Realized ACAP plays a critical role for NPD in established high-tech SMEs, whereas potential ACAP is the main driver of NPD in new low-tech SMEs. This research has some limitations that future research should conduct quantitative research in other industries’ context as well as in other countries.

Practical implications

For new ventures, they should be aware that to strengthen their network ties with customers and suppliers can be an important tool for not only overcoming their limitations of existing knowledge but also acquiring tacit knowledge from the external sources. For established high-tech ventures, they should focus not only on the short-term NPD (the achievement of current NPD) but also the long-term NPD (e.g. series of new products and new strategic alliances) that can help avoid a not-invented-here syndrome situation.

Social implications

The government should customize the policy to suit each targeted SME. Policymakers should play a crucial role of a linking pin among key external sources (e.g. R&D national and international institutions, SME banks and marketing agents) in different stages of the business cycle.

Originality/value

This research contributes to the literature of knowledge ACAP in SMEs to the understanding of the distinction roles of potential and realized ACAP as a mechanism in the different natures of entrepreneurial SMEs.

Article
Publication date: 18 January 2022

Soojeen Jang, Yanghon Chung and Hosung Son

Through the resource-based view (RBV) and contingency theory, this study empirically investigates the impacts of smart manufacturing systems' maturity levels on the performance of…

Abstract

Purpose

Through the resource-based view (RBV) and contingency theory, this study empirically investigates the impacts of smart manufacturing systems' maturity levels on the performance of small and medium-sized enterprises (SMEs). Moreover, it aims to examine how industry types (i.e. high- and low-tech industries) and human-resource factors (i.e. the proportion of production workers to total workers) as contingency factors influence the effects of smart manufacturing systems.

Design/methodology/approach

The study conducted an empirical investigation of a sample of 163 Korean manufacturing SMEs. This study used an ordinary least squares regression to examine the impacts of the maturity levels of smart manufacturing systems on financial performance. Moreover, the impacts on operational efficiency were analysed using data envelopment analysis based on bootstrap methods and Tobit regression.

Findings

The RBV results indicate that the higher the maturity levels of smart manufacturing systems, the higher the financial performance and operational efficiency. Moreover, based on contingency theory, this study reveals that the effect of the maturity levels of smart manufacturing systems on financial performance and operational efficiency depends on firms' industry types and the proportion of production workers.

Research limitations/implications

This study shows that the introduction of smart manufacturing systems can help SMEs achieve better financial performance and operational efficiency. However, their effectiveness is contingent on firms' industry types and the characteristics of their human resources.

Practical implications

Since the effects of the maturity levels of smart manufacturing systems on SME performance differ depending on their industries and the characteristics of human resources, managers need to consider them when introducing or investing in smart manufacturing systems.

Originality/value

Based on the RBV and contingency theory, this is the first empirical study to examine the moderating effects of industry types and the proportion of production workers on the impacts of the maturity levels of smart manufacturing systems on the financial performance and operational efficiency of SMEs.

Open Access
Article
Publication date: 23 August 2023

Alessandra Costa, Angelo Presenza and Tindara Abbate

This work aims to offer a better understanding of the inevitable challenges related to the digital transformation in the family-owned low-tech SMEs, examining the role assumed by…

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Abstract

Purpose

This work aims to offer a better understanding of the inevitable challenges related to the digital transformation in the family-owned low-tech SMEs, examining the role assumed by familiness in this specific context. To this end, it examines the main factors that influence the adoption and implementation of digital technologies in the family-owned low-tech SMEs.

Design/methodology/approach

The study uses a multiple case studies approach, by investigating the case of family-owned low-tech SMEs operating in the winery sector and located in the South-Italy area.

Findings

Based on the empirical evidence, findings show how familiness influence the digital transformation of family-owned SMEs and highlight three main factors – individual, process and organization – relevant for the introduction and use of digital technologies in the productive and innovative activities of these organizations.

Originality/value

This paper fills the research gap existing in the literature on the family business. Firstly, it focuses on the digital transformation phenomenon and underlines how familiness, within family-owned low-tech SMEs, can differently influence the firm's innovation processes primarly based on the use of digital technologies oriented to enable business improvements. Then, it identifies diverse dimensions that can act as “barriers” or “facilitators” for adopting advanced digital technologies within the organizations here examined.

Details

European Journal of Innovation Management, vol. 26 no. 7
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 3 April 2017

Qing Zhou, Gang Fang, Wei Yang, Yun Wu and Liqin Ren

The purpose of this paper is to theoretically and empirically analyze the impact of the types of micro-innovation on innovation performance and the choice of micro-innovation…

Abstract

Purpose

The purpose of this paper is to theoretically and empirically analyze the impact of the types of micro-innovation on innovation performance and the choice of micro-innovation strategies in different contexts on the basis of an examination of the basis and standards of micro-innovation categorization.

Design/methodology/approach

The authors collected and analyzed 206 survey samples from the Zhejiang Province in China; there were 68, 63 and 75 enterprises at inception, high growth and maturity stages, respectively, and there were, in total, 53, 90 and 63 low-tech manufacturing small and medium enterprises (SMEs), technology-intensive manufacturing SMEs and service-oriented SMEs, respectively. Multiple regression analysis was used to test the hypotheses.

Findings

The analysis results suggest that SMEs at the embryonic stage should choose strategies of imitative innovation, whereas SMEs at growth stage should use continued micro-innovation and independent micro-innovation as the optimal choices; it is better for the SMEs at the mature stage to resort to independent micro-innovation. Low-tech manufacturing SMEs should opt for the continued micro-innovation strategy, and technology-intensive manufacturing SMEs should adopt independent micro-innovation, whereas service-oriented SMEs should choose both continued and independent micro-innovation strategies.

Originality/value

This study sets up a classification framework of micro-innovation and addresses its category and sources, thus extending the micro-innovation research results. The conclusion also supports and enriches the view of open innovation in the innovation theory. Hidden behind the phenomenon that internal and external factors play vital roles, it is a basic rule that innovation activities must be subject to various related factors.

Details

Chinese Management Studies, vol. 11 no. 1
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 18 January 2008

Martti Lindman, Barbara Scozzi and Carmen Otero‐Neira

The purpose of this study is to examine the new product management practices adopted by low‐tech small and medium‐sized enterprises (SMEs) in the context of design‐intensive…

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Abstract

Purpose

The purpose of this study is to examine the new product management practices adopted by low‐tech small and medium‐sized enterprises (SMEs) in the context of design‐intensive products.

Design/methodology/approach

The results are based on a multi‐case comparative setting covering SMEs in furniture industry in three countries, Italy, Spain and Finland.

Findings

The study shows considerable differences in performance that occur in terms of the degree of design and innovation, goal orientation and the systematics by which a single furniture business is managed. Proactiveness and freedom in design and innovation together with systematic new product development (NPD) and goal orientation enhances NPD performance. As to the new product uniqueness, innovative design is applicable in furniture industry much as in a similar way as new technological knowledge is in technology industries. The management education and/or interests which are closely related to furniture design and decoration have a clear impact on the level up to which innovative designs are implemented.

Practical implications

The study has direct implications for furniture companies aiming at improving their competitiveness and NPD effectiveness. The study points out the importance of creating a proper innovative culture and being open to new ideas if export markets are targeted.

Originality/value

Technology intensive products in large‐ and medium‐sized companies have been the main focus of NPD performance research, also facing the risk of over‐generalization due to cross‐industry approaches. Low‐tech industries however play a major role as to national income and employment. In this respect the present study aims to highlight the prevailing NPD practices in small design‐intensive firms in the furniture industry by reporting any management gaps which may occur in terms of new product performance.

Details

European Business Review, vol. 20 no. 1
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 27 January 2022

Martha Lucia Cruz Rincon, Martha Lucia Agredo Diaz and Raquel Castro Puente

The purpose of this paper is to analyze the multiple mediation role of both market orientation (MO) and marketing capabilities (MC) in the relationship between entrepreneurial…

Abstract

Purpose

The purpose of this paper is to analyze the multiple mediation role of both market orientation (MO) and marketing capabilities (MC) in the relationship between entrepreneurial orientation (EO) and performance (OP), given that the results of previous studies are not conclusive. Consequently, this relationship can be more complex than a direct relationship.

Design/methodology/approach

Using structural equation models, the proposed conceptual model is tested with data from 154 small and medium-sized enterprises (SMEs) in the low-tech manufacturing sector of an emerging Latin American country. Data analysis was performed using structural equations.

Findings

The results confirm that the relationship between EO and OP is not significant. Likewise, the roles of individual and sequential mediation of MO and MC in the relationship between EO and OP are confirmed.

Research limitations/implications

The cross-sectional nature of the study. A longitudinal study could provide additional insights regarding the relationships among these variables and their effect on performance.

Practical implications

Guidelines help businesses in emerging markets to consider the importance of developing entrepreneurs’ MC and MO to optimize the impact of EO on OP.

Social implications

Guidelines help public policymakers in emerging markets to consider the importance of developing entrepreneurs’ MC and MO to optimize the impact of EO on OP.

Originality/value

This paper contributes to understanding the complex relationship between EO and OP, which remains relatively underexplored in SMEs in developing countries (Buli, 2017), by analyzing the key role of OM and MC in a multiple mediation model not considered in previous empirical evidence.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 15 no. 5
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 5 May 2023

Paras Kanojia and Gurcharan Singh

This paper empirically explored the influence of external and internal factors on technological and non-technological innovation of 5747 Indian firms. The study also explored…

Abstract

Purpose

This paper empirically explored the influence of external and internal factors on technological and non-technological innovation of 5747 Indian firms. The study also explored novel insights about manufacturing firms by segregating them into high-technology and low-technology industries.

Design/methodology/approach

The study employed hierarchical regression analysis to analyse a cross-sectional dataset gathered from the World Bank enterprise survey. The firms are segregated into high-technology and low-technology industries based on the technology-intensity classification of the manufacturing industry given by the Organisation for Economic Co-operation and Development.

Findings

The main results highlight that technological and non-technological innovation was primarily driven by internal resources and capabilities rather than external factors. The authors found the highest effect of research and development spending on both forms of innovation. In both high-tech and low-tech industries, technology transfer is positively associated with technological innovation and negatively associated with non-technological innovation. Furthermore, external business support has substantially influenced non-technological innovation in low-tech industries.

Originality/value

This study used two-step hierarchical regression to explore the influence of external and internal factors on technological and non-technological innovation separately. Exploring determinants of innovation in high-technology and low-technology industries also brings the distinct prerequisites of enhancing innovation to the attention of policymakers and industry experts.

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