Abstract:Continuous large-scale changes in technology and the globalization of markets have resulted in the need for many SMEs to use innovation as a means of seeking competitive advantage where innovation includes both technological and organizational perspectives (Tapscott, 2009). However, there is a paucity of systematic and empirical research relating to the implementation of innovation management in the context of SMEs. The aim of this article is to redress this imbalance via an empirical study created to develop … Show more
“…Under financial constraints, small and small and medium-sized enterprises are likely to perform poorly on a contract [91]. Based on findings reported by Dowla [92], Harris & Rae [93], Hadaya & Pellerin [94], Mc Adam, Moffett, Hazlett & Shelvlin [95] and Curran & Blackburn [96], the key reason why the majority of newly established firms go out of business in the first three years following establishment is their inability to raise the finance needed for the completion of projects.…”
The paper is based on a 5-year follow-up study (2007 to 2012) of a random sample of 349 small business enterprises that operate in and around the city of Pretoria in South Africa. Data were gathered from each of the businesses on socioeconomic factors that were known to affect the long-term survival of small businesses. The objective of the study was to identify and quantify key predictors of viability and long-term survival. Pearson's chi-square tests of associations, binary logistic regression analysis and the Cox Proportional Hazards Model were used for screening of variables, and for estimating odds ratios and hazard ratios of key predictors of viability and long-term survival. The study found that 188 of the 349 businesses that took part in the study (54%) were not viable, and that the long-term survival and viability of small businesses were adversely affected by lack of entrepreneurial skills, lack of supervisory support to newly established businesses, and inability to operators running newly established businesses to acquire relevant vocational skills.
“…Under financial constraints, small and small and medium-sized enterprises are likely to perform poorly on a contract [91]. Based on findings reported by Dowla [92], Harris & Rae [93], Hadaya & Pellerin [94], Mc Adam, Moffett, Hazlett & Shelvlin [95] and Curran & Blackburn [96], the key reason why the majority of newly established firms go out of business in the first three years following establishment is their inability to raise the finance needed for the completion of projects.…”
The paper is based on a 5-year follow-up study (2007 to 2012) of a random sample of 349 small business enterprises that operate in and around the city of Pretoria in South Africa. Data were gathered from each of the businesses on socioeconomic factors that were known to affect the long-term survival of small businesses. The objective of the study was to identify and quantify key predictors of viability and long-term survival. Pearson's chi-square tests of associations, binary logistic regression analysis and the Cox Proportional Hazards Model were used for screening of variables, and for estimating odds ratios and hazard ratios of key predictors of viability and long-term survival. The study found that 188 of the 349 businesses that took part in the study (54%) were not viable, and that the long-term survival and viability of small businesses were adversely affected by lack of entrepreneurial skills, lack of supervisory support to newly established businesses, and inability to operators running newly established businesses to acquire relevant vocational skills.
“…McAdam et al (2010) develop a model of innovation implementation for SMEs and test this with the use of structural equation modelling (SEM). They find that an open culture within an organisation is key in generating innovation leadership, this feeds into the product and process development management within the organisation, which in turn is positively linked to successful innovation implementation.…”
PurposeThis paper examines the impact of developing more active Websites and increasing E-commerce on the relationship between innovation and growth performance in SMEs. Using the existing literature and empirical analysis the study considers the potential of engagement with the Internet to achieve the often hard to attain ambition of both innovation and growth.
Design/methodology/approachIn order to examine the relationship, data is drawn from the Federation of Small Businesses (FSB) 'Lifting the Barriers to Growth Survey'. In order to establish whether the use of more sophisticated Websites is associated with being an innovative high performance business, whilst controlling for other firm and entrepreneurial characteristics, multivariate approaches in the form of multinominal logits and discriminant function analysis are utilised.
FindingsThe results suggest that although theoretically Websites with tools allowing interaction with customers or suppliers could benefit SMEs through a reduction in transaction costs and wider access to information, enabling them to jointly experience innovation and growth, in practice there is less evidence that this occurs. If anything those firms with active websites are more likely to be innovative, but no more likely to be both innovative and achieving growth.
ImplicationsThese results suggest that further work must be undertaken to establish whether SMEs should be encouraged to make such investments and if so what additional help is required to ensure that investments in this digital infrastructure achieves an appropriate return on investment.
Originality/ValueThe results are of importance to both SMEs and policy makers providing insight into the nature of potential benefits from Website development using a large dataset. A clear need to investigate further how more innovative SMEs can benefit from company Websites and ecommerce to grow is identified.
“…Drawing from these examples and others (Ashford et al, 2002;Gray, 2006;Etzkowitz, 2008;Hoffren and Apajalahti, 2009;McAdam et al, 2010), it can be generalized that knowledge transfer within SMEs is based on three pillars:…”
Section: The Absorptive Capacity For Learning On Resource Efficiency mentioning
confidence: 92%
“…They are seen to possess the financial resources, technical knowledge, organizational capacity and influence within the supply chain needed to drive significant innovation in environmental products and services (McAdam et al, 2010). However, there is an increasing number of studies concerned with the adoption of innovations by SMEs (Varis and Littunen, 2010), the role of SMEs in contributing to innovative resource efficiency solutions (Brown et al, 2007;Parrilli et al, 2010) and the specific barriers that may prevent innovation in SMEs (Könnölä and Unruh, 2007;Revell and Blackburn, 2007).…”
Section: Resource Efficiency As Innovationmentioning
confidence: 99%
“…Perhaps most importantly are the unique constraints regarding knowledge transfer within SMEs and the fact that HEIs do not typically engage in research that investigates barriers to this type of knowledge transfer. This is quite apparent from the dearth of literature around green innovation within SMEs (Hughes and O'Regan, 2009;McAdam et al, 2010)). Hughes and O'Regan (2009) have assessed the impact that the source of knowledge had on the knowledge transfer within SME manufacturers.…”
Section: The Absorptive Capacity For Learning On Resource Efficiency mentioning
Environmental threats associated with demographic and technological trends have resulted in calls for transition to a global economy that operates within the carrying capacity of the natural environment. Because of their centrality to economic activity, this transition must include small and medium-sized enterprises (SMEs). At the same time, because of their role as knowledge holders on both sustainability and business, higher education institutions (HEIs) can play a more active role in supporting SMEs to address this transition through the provision of timely and appropriate information. Dalhousie University's Eco-Efficiency Centre (EEC) works with SMEs to support them to identify opportunities to pursue sustainability through improved resource (material and energy) efficiency. To date, much of the support for improved resource efficiency within business has focused large corporations; it has not addressed the particular characteristics of SMEs. Supporting that transition needs a different approach, one that understands SMEs' learning dynamics; i.e. their drivers and motivators to apply new knowledge as part of their internal strategies. This paper will discuss one approach taken that focused specifically on developing the absorptive capacity of SMEs to incorporate innovationwhere in this case 'innovation' reflects the strategies for improved resource efficiency. By investigating the relationships and impacts of the EECs involvement with 70 SME manufacturers through their Eco-Efficiency Program for Manufacturers this paper looks at the development of a localized 'knowledge creation and transfer system'. By acting as an interlocutor within this system, they successfully promoted the transfer and integration of resource efficiency knowledge within the sector.
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