SMEs and Knowledge-Based Innovation Networks (original) (raw)
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Innovation networks of high tech SMES: creation of knowledge but no creation of value
2007
Abstract: This paper analyses the effects of innovation networks on product and process innovation and sales growth of high technology SMEs. Innovation networks are positively related to both product and process innovation, ie knowledge creation. One exception is the negative effect of innovation networks with suppliers on product innovation. Older SMEs are more product innovative than young SMEs. The positive relation between firm size and (process) innovation, disappears when networks are introduced into the analyses.
Managing innovation networks of SMEs: a case study
2008 IEEE International Engineering Management Conference, 2008
From the recent studies about open innovation paradigm, it emerges that the choice of the governance mode "right" to cooperate is still an interesting topic. Theoretical frameworks about the topic are available, suggesting the need for coherence among a series of factors and the governance mode to be selected. However, applications on concrete cases are still scarce, above all as concerns small companies. This empirical work aims at increasing this area of knowledge by describing the practical experience of a small company which had to choose the governance mode in order to organize and manage a New Product Development network. The first inconsistency between factors and form of government chosen leads to failure of the network. The next consistency turns failure into success, and this makes the case an interesting example of how to build an external innovation network. Moreover, peculiarities of small businesses emerge. In particular, has shown that some highly integrated governance modes, even if they could be the "ideal choice", are not really feasible for small companies. Strong planning, control and formalization can anyway serve the scope of reinforcing the governance mode in terms of integration and commitment.
Building-up the knowledge society through human capital and innovation activities, particularly generated through SMEs are generally the driving force of economic development, are developing options for future competitiveness in the form of new knowledge, and are increasing the efficiency of the economy and its ability to act. Since countries like Finland, Germany, Denmark and Sweden reach highest innovation performance among all EU countries, there are countries like Latvia, Lithuania, Romania, Bulgaria, Poland or Slovakia which drag behind other European countries and rank among the countries with the weakest innovative performance. The aim of this paper is to identify the enablers of innovation in European SMEs by using the concept of intellectual capital. Through statistical analysis we have investigated how knowledge networks, which can be considered as the source of knowledge initiatives in SMEs, contribute to their innovation activities. According to conclusions of our analysis, creating knowledge network, which secure knowledge circulation and spilling over partners consisting of universities, state or local governments and SMEs, will increase knowledge base of the economy of a country, i.e. will grow the innovation activity of enterprises, improve the quality of human resources, research and technology, which are considered as key factors of European competitiveness.
Journal of Knowledge Management, 2020
Purpose-In the context of resource scarcity, the affiliation of small and medium-sized enterprises (SMEs) to strategic networks has emerged as a fruitful path towards knowledge sharing as a reaction to fierce competition and with a view to enhance their innovative performance. In this framework, this paper aims to investigate the influence exerted by a specific relational design (i.e. types of strategic networks) and methodology (i.e. channels and content) of knowledge sharing on SMEs innovative performance. Design/methodology/approach-A questionnaire-based survey with 102 top managers of European SMEs in the industrial field was conducted from June to August 2019 and a partial least squares structural equation modelling technique was used. The database was initially filtered to ensure the adequacy of the sample and data was analysed using the statistics software package SmartPLS 3.0. Findings-The results concluded that the structural model explains 38.5% of the variance in SMEs innovative performance, indicating the positive effects exerted by offline and online and by competitive knowledge sharing on the dependent variable. Research implications-The study has both theoretical and practical implications in that it sets out a reference point for the key performance indicators for strategic networks structure, formation and development and, implicitly, for the selection of the most efficient relational design and methodology. Originality/value-The pivotal originality elements reside in the advancement of a more comprehensive conceptual and structural model combining a twofold operationalization of SMEs strategic networks (founded on business abilities or on the personality of the partner) and in the investigation of knowledge transfer processes at the inter-organizational levels within a context-centric approach.
Enhancing Innovation Capacity in SMEs through Early Network Relationships
2010
Networks can offer SMEs a number of advantages, especially in terms of providing greater opportunities for knowledge activities that support innovation, but there is little in the literature to suggest how firms develop their innovation capacity through network participation. In this paper, we present an in-depth longitudinal case study of a small entrepreneurial firm within the mobile-commerce industry. A principal finding from the study is that network relationships formed during the earliest stages of the firm's life cycle played a critical role in developing the SME's capacity for sustained innovation. Further, the study contributes to network theory by calling into question the weak and strong tie dichotomy, as relationships critical to the SME's innovation capacity possessed characteristics of both types of ties. The paper also contributes to managerial practice by emphasizing the importance of establishing strong relationships in the earliest stages of network formation.
Innovating Through Knowledge Networks: A Case Study
ABSTRACT A case study is provided that illustrates the problems associated with building a knowledge network designed to foster innovation and commercially beneficial outcomes. Despite the success of earlier networking among research groups from four separate organisations, the flow of information between these actors broke down along with the level of innovation following changes in leadership and strategic purpose.
Management of innovation networks: a case study of different approaches
European Journal of Innovation Management, 2008
Purpose -The literature includes a vast amount of research on both innovation and business networks; however, the empirical knowledge of their intersection -innovation networks and their management -is still scarce. This empirical study aims at increasing the knowledge of management of innovation networks by mapping characteristics of management approaches of two case companies. These companies operate in the software business and develop their products in inter-organizational networks. Special attention is paid to differences in the management approaches between the case companies. Design/methodology/approach -The present empirical article is based on analysis of two case companies representing very different and contrasting approaches to management of innovation networks. The empirical study is conducted among SMEs in the software business. Findings -As a result of the analysis, several aspects of management of innovation networks are identified and their nature explained. These aspects are: duration of the network; rewards from the network; fundamental meaning of the network; the nature of the networked organization; planning, control, and trust; and hierarchies, authority, and coordination. These aspects are powerful in mapping and explaining the characteristics of innovation network management. Originality/value -Various management practices are suggested and discussed in the context of each of the identified aspects of innovation network management.
SME network characteristics vs. product innovativeness: How to achieve high innovation performance
2012
Small and medium sized enterprises (SMEs) must on the one hand innovate for company survival with the appropriate degree of product innovativeness, and on the other hand they need to collaborate and focus on core competences for efficiency matters. This research examines the relation of network characteristics and product innovativeness on innovation performance in SMEs. We tested hypotheses on the relationship between these three variables via data gathered from 60 SMEs, active in the medical devices sector. In this context we aim to offer consensus in the theoretical and empirical question of whether or not network characteristics and product innovativeness have a direct effect on innovation performance of SMEs. Results show no significant direct effect of product innovativeness on innovation performance. A positive interaction effect of multiple network characteristics on innovation performance was found. Which confirms the significant importance of network configuration on innovation performance for SMEs. It indicates that, for SMEs in a highly regulated sector like the medical devices sector, the interaction of network characteristics is of crucial importance for high innovation performance. It is the combination of network characteristics that counts.