Innovation in Micro and Small Enterprises: Resources and Capabilities
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Renata Braga Berenguer de Vasconcelos
Joséte Florencio dos Santos
Jackeline Amantino de Andrade
Abstract
Objective: the article aims to identify the relevant resources for the composition of managerial and transactional capabilities in the context of micro and small enterprises (MSEs). Method: through a literature review, the resources associated with the innovation were identified: leadership, people management, information and knowledge, relationships with clients, suppliers, and society, and results. The resources were collected and measured using a structured questionnaire made available by the Local Agent for Innovation program, applied to 447 MSEs in the state of Pernambuco, between 2015 and 2017. Confirmatory factor analysis was used to verify how these resources contribute to the composition of capabilities. Results: the results demonstrate that the managerial capability is composed of the relationship with society and suppliers, leadership, the sharing of information and knowledge, and people management. Transactional capability is made up of the relationship with customers and the results obtained by the firm. Conclusions: although MSEs have restrictions on access to technologies, their organizational resources seem to contribute to the development of innovation capability and to obtain competitive advantage.
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Vasconcelos, R. B. B. de, Santos, J. F. dos, & Andrade, J. A. de. (2020). Innovation in Micro and Small Enterprises: Resources and Capabilities. Journal of Contemporary Administration, 25(2), e190106. https://doi.org/10.1590/1982-7849rac2021190106.en
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References
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Bayarçelik, E., Taşel, F., & Apak, S. (2014). A research on determining innovation factors for SMEs. Procedia - Social and Behavioral Sciences, 150, 202-211. https://doi.org/10.1016/j.sbspro.2014.09.032
Brown, T. (2015). Confirmatory factor analysis for applied research. New York, NY: The Guilford Press.
Bos-Brouwers, H. (2009). Corporate sustainability and innovation in SMEs: Evidence of themes and activities in practice. Business Strategy and the Environment, 19(7), 417-435. https://doi.org/10.1002/bse.652
Coase, R. H. (1937). The nature of the firm. Economica, 4(16), 386-405. Retrieved from https://www.jstor.org/stable/2626876?seq=1
Dosi, G., Freeman, C., & Nelson, R. (1988). Technical change and economic theory (Vol. 988). London: Printer.
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(10-11), 1105-1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E
El Elj, M., & Abassi, B. (2014). The determinants of innovation: an empirical analysis in Egypt, Jordan, Syria and Turkey. Canadian Journal of Development Studies, 35(4), 560-578. https://doi.org/10.1080/02255189.2014.934787
Farace, S., & Mazzotta, F. (2015). The effect of human capital and networks on knowledge and innovation in SMEs. Journal of Innovation Economics, 16(1), 39-71. https://doi.org/10.3917/jie.016.0039
Gana, K., Broc, G. (2019). Structural equation modeling with lavaan. London: John Wiley & Sons.
Genis-Gruber, A., & Öğüt, H. (2014). Environmental factors affecting innovation strategies of companies: Customers and suppliers effect. Procedia - Social and Behavioral Sciences, 150(11), 718-725. https://doi.org/10.1016/j.sbspro.2014.09.033
Guan, J., & Ma, N. (2003). Innovative capability and export performance of Chinese firms. Technovation, 23(9), 737-747. https://doi.org/10.1016/S0166-4972(02)00013-5
Iddris, F. (2019). Innovation capability and product innovation performance: The case of low-tech manufacturing firms. European Business Review, 31(5), 646-668. https://doi.org/10.1016/S0166-4972(02)00013-5
Inoue, A., & Kilian, L. (2005). In-sample or out-of-sample tests of predictability: Which one should we use? Econometric Reviews, 23(4), 371–402. https://doi.org/10.1081/ETC-200040785
Jong, J., & Vermeulen, P. (2006). Determinants of product innovation in small firms: A comparison across industries. International Small Business Journal, 24(6), 587-609. https://doi.org/10.1177/0266242606069268
Kamasak, R. (2015). Determinants of innovation performance: A resource-based study. Procedia - Social and Behavioral Sciences, 195, 1330-1337. https://doi.org/10.1016/j.sbspro.2015.06.311
Karpak, B., & Topcu, I. (2010). Small medium manufacturing enterprises in Turkey: An analytic network process framework for prioritizing factors affecting success. International Journal of Production Economics, 125(1), 60–70. https://doi.org/10.1016/j.ijpe.2010.01.001
Kim, M., Park, J., & Paik, J. (2018). Factors influencing innovation capability of small and medium-sized enterprises in Korean manufacturing sector: Facilitators, barriers and moderators. International Journal of Technology Management, 76(3-4), 214-235. https://doi.org/10.1504/IJTM.2018.10012461
Laforet, S., & Tann, J. (2006). Innovative characteristics of small manufacturing firms. Journal of Small Business and Enterprise Development, 13(3), 363-380. https://doi.org/10.1108/14626000610680253
Laforet, S. (2011). A framework of organizational innovation and outcomes in SMEs. International Journal of Entrepreneurial Behavior & Research, 17(4), 380-408. https://doi.org/10.1108/13552551111139638
Lawson, B., & Samson, D. (2001). Developing innovation capability in organizations: A dynamic capabilities approach. International Journal of Innovation Management, 5(3), 377-400. https://doi.org/10.1142/S1363919601000427
Le, P., & Lei, H. (2019). Determinants of innovation capability: The roles of transformational leadership, knowledge sharing and perceived organizational support. Journal of Knowledge Management, 23(3), 527-547. https://doi.org/10.1108/JKM-09-2018-0568
Lee, F., & Newton, K. (2000). Innovation of SMEs in the knowledge-based economy. Journal of Small Business & Entrepreneurship, 15(4), 2-31. https://doi.org/10.1080/08276331.2000.10593291
Lei Complementar n. 155, de 27 de outubro de 2016. (2016). Altera a Lei Complementar nº 123, de 14 de dezembro de 2006. Retrieved from http://www.planalto.gov.br/ccivil_03/leis/lcp/lcp155.htm
MartÃnez-Román, J., & Romero, I. (2017). Determinants of innovativeness in SMEs: Disentangling core innovation and technology adoption capabilities. Review of Managerial Science, 11(3), 543-569. https://doi.org/10.1007/s11846-016-0196-x
Nelson, R. R., & Winter, S. G. (1982). An evolutionary theory of economic change. Cambridge: Belknap Press.
Nidumolu, R., Prahalad, C., & Rangaswami, M. (2009). Why sustainability is now the key driver of innovation. Harvard Business Review, Reprint R0909E. Retrieved from https://www.academia.edu/8421329/Why_Sustainability_Is_Now_the_Key_Driver_of_Innovation_The_Idea_in_Brief_the_core_idea_1_Article_Summary_3_Why_Sustainability_Is_Now_the_Key_Driver_of_Innovation
Pavitt, K. (1984). Setorial patters of technical change: Towards a taxonomy and a theory. Research Policy, 13(6), p. 343-373. https://doi.org/10.1016/0048-7333(84)90018-0
Penrose, E. (1959). The theory of growth of firm. New York, NY: Oxford University Press.
Popadiuk, S., Luz, A., & Kretschmer, C. (2018). Dynamic capabilities and ambidexterity: how are these concepts related? RAC. Revista de Administração Contemporânea, 22(5), 639-660. https://doi.org/10.1590/1982-7849rac2018180135
Raghuvanshi, J., Ghosh, P., & Agrawal, R. (2019). Taxonomy of innovation capability framework with future directions. International Journal of Business Excellence, 17(3), p. 265-289. https://doi.org/10.1504/IJBEX.2019.10019304
Rogers, M. (2004). Networks, firm size and innovation. Small Business Economics, 22(2), 141-153. https://doi.org/10.1023/B:SBEJ.0000014451.99047.69
Saunila, M. (2019). Innovation capability in SMEs: A systematic review of the literature. Journal of Innovation & Knowledge. https://doi.org/10.1016/j.jik.2019.11.002
Schumpeter, J. A. (1984). Capitalismo, socialismo e democracia. Rio de Janeiro: Zahar.
Schumpeter, J. A. (1988). A teoria do desenvolvimento econômico. São Paulo, SP: Nova Cultural.
Serviço Brasileiro de Apoio às Micro e Pequenas Empresas. (2018). Perfil das microempresas e empresas de pequeno porte 2018. https://www.sebrae.com.br/sites/PortalSebrae/ufs/ro/artigos/perfil-das-microempresas-e-empresas-de-pequeno-porte-2018,a2fb479851b33610VgnVCM1000004c00210aRCRD?origem=tema&codTema=2
Serviço Brasileiro de Apoio às Micro e Pequenas Empresas. (2020). Data SEBRAE. Retrieved from https://datasebrae.com.br/
Silva, M., Mainardes, E., Raposo, M., & Sousa, G. (2012). Determinantes internos e externos da capacidade inovadora das empresas de serviços portuguesas: Modelo logit. Revista de Gestão, 19(1), 39-54. https://doi.org/10.5700/rege450
Söllner, R. (2010). Human capital diversity and product innovation: a micro-level analysis. Jena Economic Research Papers, 27, 1-33. Retrieved from https://www.econstor.eu/bitstream/10419/32631/1/625854918.pdf
Tanaka, J. (1993). Multifaced conceptions of fit in strucutural equation models. In K. A. Bollen, & J. S. Long (Eds.), Testing structural equation models (pp. 10-39). Newbury Park: Sage Publications.
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319-1350. https://doi.org/10.1002/smj.640
Teece, D. J., Pisano G., & Shuen A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Tometich, P., Fracasso, E., Zen, A., & Engelman, R. (2019). A decisão de inovar e o movimento das capacidades dinâmicas. Gestão & Produção, 26(2), e3627. http://dx.doi.org/10.1590/0104-530x-3627-19
Vasconcelos, R. B. B., & Oliveira, M. R. G. (2018). Determinantes da inovação em micro e pequenas empresas: Uma abordagem gerencial. Revista de Administração de Empresas, 58(4), 249-364. http://dx.doi.org/10.1590/s0034-759020180402Â
Vasconcelos, R. B. B, Vieira, R. S., & Silveira, D. S. (2020). What’s the recipe to innovate? An analysis of the determinants of the degree of innovation in the gastronomy segment. International Journal of Innovation Management, 24(1), 2050005. https://doi.org/10.1142/S136391962050005X
Williamson, O. (1985). The economic institutions of capitalism. New York, NY: Free Press.
Zawislak, P., Alves, C., Tello-Gamarra, J., Barbieux, D., & Reichert, F. (2012). Innovation capability: from technology development to transaction capability. Journal of Technology Management & Innovation, 7(2), 14-27. https://doi.org/10.4067/S0718-27242012000200002
Zawislak, P., Fracasso, E., & Tello-Gamarra, J. (2018). Technological intensity and innovation capability in industrial firms. Innovation & Management Review, 15(2), 189-207. https://doi.org/10.1108/INMR-04-2018-012
Bayarçelik, E., Taşel, F., & Apak, S. (2014). A research on determining innovation factors for SMEs. Procedia - Social and Behavioral Sciences, 150, 202-211. https://doi.org/10.1016/j.sbspro.2014.09.032
Brown, T. (2015). Confirmatory factor analysis for applied research. New York, NY: The Guilford Press.
Bos-Brouwers, H. (2009). Corporate sustainability and innovation in SMEs: Evidence of themes and activities in practice. Business Strategy and the Environment, 19(7), 417-435. https://doi.org/10.1002/bse.652
Coase, R. H. (1937). The nature of the firm. Economica, 4(16), 386-405. Retrieved from https://www.jstor.org/stable/2626876?seq=1
Dosi, G., Freeman, C., & Nelson, R. (1988). Technical change and economic theory (Vol. 988). London: Printer.
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(10-11), 1105-1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E
El Elj, M., & Abassi, B. (2014). The determinants of innovation: an empirical analysis in Egypt, Jordan, Syria and Turkey. Canadian Journal of Development Studies, 35(4), 560-578. https://doi.org/10.1080/02255189.2014.934787
Farace, S., & Mazzotta, F. (2015). The effect of human capital and networks on knowledge and innovation in SMEs. Journal of Innovation Economics, 16(1), 39-71. https://doi.org/10.3917/jie.016.0039
Gana, K., Broc, G. (2019). Structural equation modeling with lavaan. London: John Wiley & Sons.
Genis-Gruber, A., & Öğüt, H. (2014). Environmental factors affecting innovation strategies of companies: Customers and suppliers effect. Procedia - Social and Behavioral Sciences, 150(11), 718-725. https://doi.org/10.1016/j.sbspro.2014.09.033
Guan, J., & Ma, N. (2003). Innovative capability and export performance of Chinese firms. Technovation, 23(9), 737-747. https://doi.org/10.1016/S0166-4972(02)00013-5
Iddris, F. (2019). Innovation capability and product innovation performance: The case of low-tech manufacturing firms. European Business Review, 31(5), 646-668. https://doi.org/10.1016/S0166-4972(02)00013-5
Inoue, A., & Kilian, L. (2005). In-sample or out-of-sample tests of predictability: Which one should we use? Econometric Reviews, 23(4), 371–402. https://doi.org/10.1081/ETC-200040785
Jong, J., & Vermeulen, P. (2006). Determinants of product innovation in small firms: A comparison across industries. International Small Business Journal, 24(6), 587-609. https://doi.org/10.1177/0266242606069268
Kamasak, R. (2015). Determinants of innovation performance: A resource-based study. Procedia - Social and Behavioral Sciences, 195, 1330-1337. https://doi.org/10.1016/j.sbspro.2015.06.311
Karpak, B., & Topcu, I. (2010). Small medium manufacturing enterprises in Turkey: An analytic network process framework for prioritizing factors affecting success. International Journal of Production Economics, 125(1), 60–70. https://doi.org/10.1016/j.ijpe.2010.01.001
Kim, M., Park, J., & Paik, J. (2018). Factors influencing innovation capability of small and medium-sized enterprises in Korean manufacturing sector: Facilitators, barriers and moderators. International Journal of Technology Management, 76(3-4), 214-235. https://doi.org/10.1504/IJTM.2018.10012461
Laforet, S., & Tann, J. (2006). Innovative characteristics of small manufacturing firms. Journal of Small Business and Enterprise Development, 13(3), 363-380. https://doi.org/10.1108/14626000610680253
Laforet, S. (2011). A framework of organizational innovation and outcomes in SMEs. International Journal of Entrepreneurial Behavior & Research, 17(4), 380-408. https://doi.org/10.1108/13552551111139638
Lawson, B., & Samson, D. (2001). Developing innovation capability in organizations: A dynamic capabilities approach. International Journal of Innovation Management, 5(3), 377-400. https://doi.org/10.1142/S1363919601000427
Le, P., & Lei, H. (2019). Determinants of innovation capability: The roles of transformational leadership, knowledge sharing and perceived organizational support. Journal of Knowledge Management, 23(3), 527-547. https://doi.org/10.1108/JKM-09-2018-0568
Lee, F., & Newton, K. (2000). Innovation of SMEs in the knowledge-based economy. Journal of Small Business & Entrepreneurship, 15(4), 2-31. https://doi.org/10.1080/08276331.2000.10593291
Lei Complementar n. 155, de 27 de outubro de 2016. (2016). Altera a Lei Complementar nº 123, de 14 de dezembro de 2006. Retrieved from http://www.planalto.gov.br/ccivil_03/leis/lcp/lcp155.htm
MartÃnez-Román, J., & Romero, I. (2017). Determinants of innovativeness in SMEs: Disentangling core innovation and technology adoption capabilities. Review of Managerial Science, 11(3), 543-569. https://doi.org/10.1007/s11846-016-0196-x
Nelson, R. R., & Winter, S. G. (1982). An evolutionary theory of economic change. Cambridge: Belknap Press.
Nidumolu, R., Prahalad, C., & Rangaswami, M. (2009). Why sustainability is now the key driver of innovation. Harvard Business Review, Reprint R0909E. Retrieved from https://www.academia.edu/8421329/Why_Sustainability_Is_Now_the_Key_Driver_of_Innovation_The_Idea_in_Brief_the_core_idea_1_Article_Summary_3_Why_Sustainability_Is_Now_the_Key_Driver_of_Innovation
Pavitt, K. (1984). Setorial patters of technical change: Towards a taxonomy and a theory. Research Policy, 13(6), p. 343-373. https://doi.org/10.1016/0048-7333(84)90018-0
Penrose, E. (1959). The theory of growth of firm. New York, NY: Oxford University Press.
Popadiuk, S., Luz, A., & Kretschmer, C. (2018). Dynamic capabilities and ambidexterity: how are these concepts related? RAC. Revista de Administração Contemporânea, 22(5), 639-660. https://doi.org/10.1590/1982-7849rac2018180135
Raghuvanshi, J., Ghosh, P., & Agrawal, R. (2019). Taxonomy of innovation capability framework with future directions. International Journal of Business Excellence, 17(3), p. 265-289. https://doi.org/10.1504/IJBEX.2019.10019304
Rogers, M. (2004). Networks, firm size and innovation. Small Business Economics, 22(2), 141-153. https://doi.org/10.1023/B:SBEJ.0000014451.99047.69
Saunila, M. (2019). Innovation capability in SMEs: A systematic review of the literature. Journal of Innovation & Knowledge. https://doi.org/10.1016/j.jik.2019.11.002
Schumpeter, J. A. (1984). Capitalismo, socialismo e democracia. Rio de Janeiro: Zahar.
Schumpeter, J. A. (1988). A teoria do desenvolvimento econômico. São Paulo, SP: Nova Cultural.
Serviço Brasileiro de Apoio às Micro e Pequenas Empresas. (2018). Perfil das microempresas e empresas de pequeno porte 2018. https://www.sebrae.com.br/sites/PortalSebrae/ufs/ro/artigos/perfil-das-microempresas-e-empresas-de-pequeno-porte-2018,a2fb479851b33610VgnVCM1000004c00210aRCRD?origem=tema&codTema=2
Serviço Brasileiro de Apoio às Micro e Pequenas Empresas. (2020). Data SEBRAE. Retrieved from https://datasebrae.com.br/
Silva, M., Mainardes, E., Raposo, M., & Sousa, G. (2012). Determinantes internos e externos da capacidade inovadora das empresas de serviços portuguesas: Modelo logit. Revista de Gestão, 19(1), 39-54. https://doi.org/10.5700/rege450
Söllner, R. (2010). Human capital diversity and product innovation: a micro-level analysis. Jena Economic Research Papers, 27, 1-33. Retrieved from https://www.econstor.eu/bitstream/10419/32631/1/625854918.pdf
Tanaka, J. (1993). Multifaced conceptions of fit in strucutural equation models. In K. A. Bollen, & J. S. Long (Eds.), Testing structural equation models (pp. 10-39). Newbury Park: Sage Publications.
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319-1350. https://doi.org/10.1002/smj.640
Teece, D. J., Pisano G., & Shuen A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Tometich, P., Fracasso, E., Zen, A., & Engelman, R. (2019). A decisão de inovar e o movimento das capacidades dinâmicas. Gestão & Produção, 26(2), e3627. http://dx.doi.org/10.1590/0104-530x-3627-19
Vasconcelos, R. B. B., & Oliveira, M. R. G. (2018). Determinantes da inovação em micro e pequenas empresas: Uma abordagem gerencial. Revista de Administração de Empresas, 58(4), 249-364. http://dx.doi.org/10.1590/s0034-759020180402Â
Vasconcelos, R. B. B, Vieira, R. S., & Silveira, D. S. (2020). What’s the recipe to innovate? An analysis of the determinants of the degree of innovation in the gastronomy segment. International Journal of Innovation Management, 24(1), 2050005. https://doi.org/10.1142/S136391962050005X
Williamson, O. (1985). The economic institutions of capitalism. New York, NY: Free Press.
Zawislak, P., Alves, C., Tello-Gamarra, J., Barbieux, D., & Reichert, F. (2012). Innovation capability: from technology development to transaction capability. Journal of Technology Management & Innovation, 7(2), 14-27. https://doi.org/10.4067/S0718-27242012000200002
Zawislak, P., Fracasso, E., & Tello-Gamarra, J. (2018). Technological intensity and innovation capability in industrial firms. Innovation & Management Review, 15(2), 189-207. https://doi.org/10.1108/INMR-04-2018-012