Innovation in small business: comparing face‐to‐face with virtual networking

Abstract

PurposeThe paper aims to better understand the process of networking by small business with their customers to achieve innovations. In particular the relative roles of face‐to‐face and virtual interaction are to be investigated.Design/methodology/approachInitially a week of participant observation was undertaken then 17 in‐depth interviews were conducted and analyzed. The biotechnology sector was used for the sample.FindingsNetworking interaction could be categorized into stages. A deepening of the relationship developed on two fronts: increasing exchanges of technical information but necessarily supplemented by increased sharing of social information to facilitate tacit knowledge exchanges. As the relationship continued to develop, virtual modes could be used in an increasing capacity. The paper developed a stage model and identified the role of face‐to‐face and virtual exchanges at each stage.Research limitations/implicationsGeneralizability is unproven. However the issues appeared typical of any technology or science‐based sector and suggest broader applicability.Practical implicationsBusiness people cannot assume that all steps in the process of generating an innovation with a customer can be achieved virtually. The stage model provides guidance to practitioners on the appropriate interaction modes to avoid wasteful face‐to‐face meetings and ineffective virtual exchanges.Originality/valueWhile the usefulness of networking by small business is well recognized, little is known about the process of networking and in particular the potential role of virtual communication and what can and cannot be achieved. The paper sheds light on these issues and develops an explanatory framework.

Mixed Virtual Supports Startup Survival During Pandemic

“…The conditions of the teams were still informal, where technological equipment was not as yet satisfactory to support mature level virtual interaction (Friedrich, 2017). So, from this, face-to-face interaction was needed to reduce limitations (Andres, 2002;Blenke, 2013;Hardwick et al, 2012;Kirkman et al, 2004). Mixed virtual interaction occurred during the pandemic, because of the spread of the virus, caused by human networks, brought about the necessity for communicational alternatives in businesses.…”

“…Kondisi tim masih informal, ketika perangkat teknologi belum memadai untuk mendukung interaksi virtual yang matang (Friedrich, 2017). Maka dari itu, interaksi tatap muka diperlukan untuk mengurangi keterbatasan (Andres, 2002;Blenke, 2013;Hardwick et al, 2012;Kirkman et al, 2004). Mixed virtual umum terjadi di masa pandemi, karena penyebaran virus yang disebabkan oleh jaringan manusia menyebabkan perlunya alternatif komunikasi dalam bisnis.…”

“…In the beginnings of the formation, the teams were founded by lead entrepreneurs, who then sought co-founders through interpersonal attraction, from relationships based upon similar interests, a tendency towards mutual complementation, similarities one to the other, and relationships based upon friendship circles (Lazar et al, 2017). A number of previous studies showed that faceto-face interactions at the early stages of the formation of virtual teams were important matters for the successes of the building of deeper relationships (Hardwick et al, 2012;Maznevski & Chudoba, 2000;Peters & Manz, 2007). Face-to-face and virtual interactions, in the early stages, built complementary relationships in the exchange of information for each member's comprehension of the other team members, although the priority and weighting was higher for face-to-face interactions (Hardwick et al, 2012).…”

Entrepreneurial Orientation and Innovation for Improving Competitive Advantage

“…Furthermore, besides focusing on entrepreneurial orientation, innovation activities are more specific approaches that companies must do in order to increase competitive advantage [22]. Innovation is the key to maintaining a competitive advantage by combining knowledge with making new products [23]. Innovation can also include the use of the latest technology or implementing new ways in the company's production processes in competition in the same market, where entrepreneurs make innovative steps even though the company still faces the same competitors and struggles on the same market scale.…”

Entrepreneurship and Networked Collaboration; Synergetic Innovation, Knowledge and Uncertainty

“…can be answered by stating that they are open to knowledge, and that this knowledge is critical for growth, survival and innovation. Specifically in terms of innovation, Hardwick et al (2012) and demonstrated how small firms can co-create new knowledge for innovation by combining and synthesising tacit and codified knowledge to create new products and services. Moreover, Harbi (2011) and Anderson, Harbi and Amamou (2012) showed that when firms were not able to be open to new knowledge, innovation was very difficult indeed.…”