Designated peripheral regions within the European Union (EU) have economies and standards of living which are below average. One of the primary reasons recognised by local government for this poor economic standing has been low levels of innovation within indigenous small to medium‐sized enterprises (SMEs). These SMEs have difficulties in growing and exporting or being part of successful supply chains. The aim of this paper is to explore how innovation is successfully incorporated or hindered in SMEs within an EU peripheral region. An innovation model was applied in a multiple case study methodology involving 41 SMEs. Both quantitative and qualitative data were gathered and analysed. The paper concludes that SMEs must strategically plan for innovation and move beyond continuous improvement, or “kaizen”, and states that such plans must avoid quick fixes and address the underlying cultural barriers to innovation, such as organisational structure, owner‐manager leadership issues, a lack of empowerment and lack of use of employees' ideas and suggestions for innovation.
Investigates how organisations can progress from total quality (TQ) to business innovation and represents the first part of an EU sponsored research programme in total quality and innovation. First, definitions and underlying assumptions are analysed which enables a definition of TQ and innovation to be derived that can accommodate a natural organisational progression in terms of implementation. Second, TQ and Innovation are compared and contrasted by analysing models in each of the respective fields. The main findings were that, in general, innovation models were based more on organisational learning and appreciation of human capital than TQ models, which were based more on mechanistic process based continuous improvement. Finally, the results of a research study into innovation and total quality are presented and discussed. The study found that organisations which have a history of continuous improvement are more likely to go on and build a successful innovative culture.
With increasing market pressure and fragmentation Small to Medium Sized Enterprises (SMEs) must move beyond the change philosophy of Continuous Improvement (CI) and develop a culture of innovation. To find out if SMEs could go beyond CI to achieve effective business innovation as a change management philosophy, a literature survey and a research survey on 15 SMEs was conducted to provide additional relevant information. The main research findings were: the SMEs exhibited a range of Continuous Improvement and innovation characteristics – some had adopted a culture of Continuous Improvement, while others had not; the SMEs which had adopted a culture of Continuous Improvement found that it could provide a solid foundation on which to build a culture of effective business innovation; and these SMEs were found to have embraced all the different components of innovation, as measured, more readily than those SMEs which did not have a culture of Continuous Improvement.
Small-to medium-sized enterprises (SMEs) are coming under increasing market pressures due to larger more agile companies encroaching on their markets and increasing integration in the supply chain. Thus SMEs need to increase their innovativeness to improve and survive. The aim of this paper is to see how quality practices can be used to instill innovation within SMEs. The research methodology involved a statistical analysis of over 60 SMEs to determine their approach to quality and innovation. This approach was followed up with ten in-depth case studies to determine deep rich data. The case study data, presented in this paper, show that quality is an essential foundation for progressing to large scale innovation and also continues to act as a catalyst for innovation.
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