Purpose
– Using the case study of a small firm this research study aims to understand the actions required for diffusion of an innovation in a small firm.
Design/methodology/approach
– The research used a qualitative approach involving interviews, referring to archival documentation and observations to understand the actions required for diffusing an innovation in an SME.
Findings
– From this case study various institutional actions specific to a small firm were identified as a result of government intervention. Classic theories of adoption and use such as, TAM, TPB, TRA or DoI can quantify measures but cannot explain the impact of the actions that the applied King et al. framework did. Further, although these actions are not directly evident, using the qualitative findings and analysis it can be seen that they are important for the diffusion of an innovation. It can also be learnt that these institutional actions can be vitally important for the growth and development of a future innovation. Although the role of government intervention was small in monetary terms, the mere presence of government representation was critical to ensure that the proposed plans and measures were implemented in the appropriate manner and at the appropriate time, both for the small firm and for the government. In terms of the theoretical framework's institutional actions it can be learnt that not all action outcomes are clearly visible. Some are tangible, while others are not. This implies that to diffuse innovation, there needs to be an understanding of monetary, human and other such resources to form a better understanding. However, most importantly it can be concluded that the diffusion framework developed by King et al. provides a clear picture of the diffusion of an innovation and is most useful for understanding not only national government interventions that previous research identified. Previous institutional actions research has not clearly shown how a micro understanding of the impacts of the various actions can be obtained, of which this study provides further evidence.
Originality/value
– Collaborative arrangements between HEIs, SMEs and government funding agencies are increasingly encouraged. This paper examines and understands the impacts of strategies used for diffusing innovations, of which the SME and KTP contexts have fewer studies.
Does Government Intervention in the Small-Firm Credit Market Help Economic Performance?
