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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.

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.

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.

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.

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.

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).

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

The purpose of this paper is to extend the knowledge into the relationship between open innovation (OI) and firm’s innovative performance. Specifically, the authors aim to determine whether the benefits of OI practices are different for Food and Beverage (FnB) firms as compared to those of other sectors. The FnB industry is relevant in terms of employment GDP generation in the UE, characterised by high integration and low-tech intensity.

In order to achieve the goal and obtain robust results, the authors consider four OI dimensions and four innovation performance measures using panel data (2004-2011) from 10,771 FnB and non-FnB firms using Tobit and Logit models by random effects.

The authors test and confirm the presence of the classical inverted U-shape relationship between OI and firm innovative performance for FnB and non-FnB companies. However, the optimal number of external sources of knowledge used is lesser for FnB than the rest of the companies.

The paper compares the OI effects in a traditional and low-tech industry vs other industries considering four innovation outputs (product innovations, process innovations, incremental innovation and radical innovation).

This study aims to understand the influence of R&D intensity and ownership concentration on performance of Indian technology SMEs, at the intersection of “value creation” perspective of corporate governance and country cultural context in innovation.

Cross-sectional data of 264 Indian technology SMEs have been employed to probe the impact of ownership and R&D intensity on market performance of the technology SMEs.

This study does not find support of individual influence of R&D intensity on SME performance. The authors find support for the “value creation” hypothesis of corporate governance in Indian technology SME context. This study finds that interaction of promoter's ownership concentration and R&D intensity has a positive influence on the performance of Indian technology SMEs.

This study has deployed cross-sectional data. Future studies can examine the “value creation” hypothesis based on panel data for a long-run understanding. Ownership can be further segregated into different categories of ownership in future studies.

This study underscores on distinct necessity in the concentrated ownership in the context of Indian technology SMEs. The findings of the study may encourage policymakers to focus on the “value creation” of the technology SMEs than “value protection.”

This study aims to understand the market value of R&D practice of SMEs. The findings of this study establish that R&D intensity individually may not have any significant influence on SME performance. R&D intensity coupled with concentrated ownership can significantly increase SME performance. Thus, this study identifies factors that can help in SME innovation and growth options. Additionally, this study advocates for the fact concentrated ownership in technology SMEs of India by establishing the link with SME performance.

This paper not only draws conclusions from the available literature but also offers some new factors as well, which are not included in the existing literature. To be more precise, the purpose of this paper is to ascertain factors behind the clustering of the motorcycle industry, a low-tech and low investment industry. This paper weighs the government’s policies, role of factors of production, infrastructure, geography and other drivers for the subject industry and associated industries in the geographic location of Hyderabad.

For collection of data, a questionnaire was designed to survey the cluster (n=250) after reviewing the literature and conducting interviews of experts of the motorcycle manufacturing industry, i.e. owners, managers, auditors, suppliers, etc.; a component matrix was developed to reduce the dimension of factors and measure the correlation, which helped to weigh the influence of factors. A confirmatory factor analysis proposed four factors as the best fit.

The study conjectured a new viable factor for industrial clustering: “ethnic community,” as it acts as a catalyst to diffuse knowledge, experience and skills within the industrial cluster.

This research does not find the weightage of the factors for industrial clustering, i.e. it does not calculate the influence of factors behind the industrial clustering.

The above findings aim to stimulate policy makers and researchers alike to further pursue the line of inquiry developed in this paper.

A first-time confirmatory factor analysis is used to find the reasons of industrial clustering. Root mean square error of approximation is used to test the model fit. Most importantly, it is the research about an emerging industrial cluster.

Business literature reveals the importance of generating innovative products and services, but much of the innovation research has been conducted in large firms and not replicated in small firms. These firms are likely to have different perspectives on innovation, which means that they will probably behave differently to large firms. Our study aims to unpack how firms in Spatial Information perceive and engage in innovation as a part of their business operation.

To investigate these questions we conduct 20 in-depth interviews of top management team members in Spatial Information firms in Australia.

We find that small firms define innovation very broadly and measure innovation by its effect on productivity or market success. Innovation is seen as crucial to survival and success in a competitive environment. Most firms engage in product and/or service innovations, while some also mentioned marketing, process and organisational innovations. Most innovations were more exploitative rather than exploratory with only a few being radical innovations. Innovation barriers include time and money constraints, corporate culture and Government tendering practices. Our study sheds a light on our understanding of innovation in an under-researched sector; that is Spatial Information industry.

The main purpose of this study is to explain the combined effects of host country weak network ties and absorptive capacity on the innovative foreign knowledge inflows of international high-tech small- and medium-sized enterprises (SMEs).

Data are drawn from the two largest and most authoritative German Federal Government census-databases of biotech and nanotech SMEs. A structured survey questionnaire was administered and regression analysis adopted.

This study demonstrates weak network ties in the host country and developing absorptive capacity produce a combined effect that positively influences international high-tech SMEs innovative foreign knowledge inflows. Also, host country weak network ties and absorptive capacity when considered separately, each respectively, positively influence innovative foreign knowledge inflows.

The results help inform key personnel in international high-tech SMEs about the relevance of host country weak network ties and absorptive capacity for foreign knowledge inflows. In addition, the results help policymakers and think-tanks to promote tailored advice and guidance e.g. those policymakers implementing the EU Entrepreneurship 2020 Action Plan.

There is a recent call in the literature to combine network theory and absorptive capacity theory to better explain knowledge creation in the context of international high-tech SMEs knowledge sourcing. By addressing this call, the study provides a more refined and comprehensive account of international high-tech SMEs innovative foreign knowledge inflows.