scholarly journals The Effect of External Knowledge Sources on Organizational Innovation in Small and Medium Enterprises in Germany

2021 ◽  
Vol 12 (1) ◽  
pp. 60-79
Author(s):  
Shoaib Abdul Basit

Abstract Background: Firms increasingly depend on external actors for the process of generating innovation. Interaction with these actors might occur through an official collaboration agreement or via external actors as the source of information. Objectives: Although open innovation has received more attention, still less is known about its effect on organizational innovation. To fill this gap, this study investigates the impact of various external knowledge sources on the willingness of small and mediumsized enterprises to introduce organizational innovation. Methods/Approach: To achieve the proposed objective, the German Community Innovation Survey conducted in 2017 is used for the econometric analysis. Results: Different external sources of knowledge are relevant for the introduction of organizational innovation in small firms (customers in the private sector, competitors, conferences, and crowdsourcing) compared to medium-sized firms (customers in the private sector and industry associations). Conclusions: External knowledge sources are more important for small firms compared to medium firms, and those small firms are more likely to use various sets of external knowledge.

2018 ◽  
Vol 22 (2) ◽  
pp. 237-256 ◽  
Author(s):  
Lurdes Simao ◽  
Mário Franco

Purpose This paper aims to analyse the impact of different knowledge sources used by firms to adopt organizational innovation, in relation to organization of responsibilities and decision-making in the workplace. Design/methodology/approach To fulfil the proposed objective, quantitative research, based on a sample of 2,591 Portuguese firms, has been undertaken. Data have been obtained from the Community Innovation Survey 2012. Findings The results show the importance of external knowledge from suppliers, clients, consultants and commercial laboratories in new innovation practices in firm workplace. Knowledge from competitors, universities, the State and research institutes does not present a significant effect. Practical implications Knowledge sources can stimulate the introduction of new management practices in the workplace, consistent with the external search literature on technological innovation, which argues that many of the ideas and implementation skills for organizational innovation come from outside sources. Originality/value Within the innovation management literature, very few studies tried to explore organizational innovation in firm workplaces. This paper is innovative and makes a novel contribution mainly to the knowledge management field by highlighting the importance of external knowledge sources in organizational innovation in firm workplaces from a knowledge-based perspective.


2020 ◽  
Vol 23 (2) ◽  
pp. 159-171 ◽  
Author(s):  
Cristina Villar ◽  
José Pla-Barber ◽  
Pervez Ghauri

In this article, we analyze the impact of learning from internationalization on small and medium enterprises’ (SMEs) performance along different development paths. Drawing on the exploitation versus exploration logic, we use an alternative view of foreign operation modes (the learning perspective) to provide insights into the impact of such learning on technological and organizational innovation as well as overall performance. Our results, which are derived from a sample of 132 SMEs active in traditional manufacturing industries, point to a path to superior performance that entails resource-augmenting operation modes and organizational innovation. JEL CLASSIFICATION: O31; F23; L25; M10; M16


Author(s):  
Luo Fan ◽  
Md. Aftab Uddin ◽  
Anupam Kumar Das

In the era of global competition, innovation has become a central object to obtain a sustainable future by an organization outrunning their counterparts. Based on the questionnaires survey on Ready-made Garment (RMGs) and small and medium enterprises (SMEs) in Bangladesh, this empirical study aims at finding the impact of transformational leadership (TL), knowledge management (KM), citizenship behavior or positive deviance (PD), and intrinsic motivation (IM) on organizational innovation (OI). Stratified random sampling has been used for collecting the responses of the SMEs in Bangladesh. Data analysis shows that TL, KM, IM, and PD can predict OI significantly. Limitations, implication and further research directions have also been discussed in this article.


2015 ◽  
Vol 21 (5) ◽  
pp. 594-613 ◽  
Author(s):  
Fang Huang ◽  
John Rice ◽  
Nigel Martin

AbstractWhile ‘open innovation’ is often considered to be an organisational strategy with universal application, its generalisability and applicability to organisations operating within emerging economies has yet to be fully explored. This study provides empirical evidence of its importance within a substantial sample of Chinese large firms and small and medium enterprises. Using Tobit regression analysis, our findings indicate that external knowledge sources from inter-firm networking are more important in creating the benefits of open innovation for Chinese small and medium enterprises than their larger peers. Linkages to university and research institutes generally have few direct effects on the innovation performance of both large and small firms in China. However, the role of universities and research institutes is shown to be important among our large firm sample when combined with evident internal absorptive capacity. This interaction is generally limited to our large firm sample, and is not as evident among small firms.Our study indicates that the barriers to the adoption of open innovation by Chinese firms might be largely related to the comparatively weak domestic research expertise and limited organisational absorptive capabilities, with this most particularly evident for small and medium enterprises.These findings suggest that, based on this evidence, there is no need for emerging economies like China to mimic the emergence path from closed to open innovation followed by developed countries. Chinese firms will be more likely to garner the benefits available from openness when they develop the capabilities required to identify, assimilate and commercialise knowledge and technologies obtained from external sources.


2020 ◽  
pp. 196-205
Author(s):  
Ahlam Otaibi Alghanmi

There is a lack of studies on innovations and competitiveness in Small & Medium Enterprises (SMEs) in Saudi Arabia; to fell this gap, this paper will study change as the competitive advantage for Small and Medium Enterprises: the case for the Kingdom of Saudi Arabia. The study aims to explore different practices of SMEs in the Kingdom of Saudi Arabia to examine the impact of innovation strategies (Organizational, Product, Process, and Market) on the competitive advantage of SMEs. The study was conducted on one hundred and forty-seven (147) SMEs that are practicing different activities in the Kingdom of Saudi Arabia. The study's analysis indicates that most of the enterprises were young (operation years were less than ten years), which shows the strong need to apply innovative strategies to maintain their position and competitiveness in the market. Competitive advantage enables the firm to utilize its resources efficiently and maintain high levels of quality performance. The results show that the correlation between Innovation strategies such as product innovation strategy, market innovation strategy, process innovation strategy, and organizational innovation strategy practiced by SMEs in the Kingdom of Saudi Arabia and competitiveness was Positive. Therefore, it indicates that different innovation strategies were significantly influencing the competitiveness of the SMEs. To remain a competitor enterprise in the market is not a natural or an easy attempt, and it can be challenging for SMEs, especially without the needed knowledge and support. Findings and recommendations of the study can be used as a guideline for SMEs. Also, emphasizing on the importance of education that plays a vital role in SMEs innovations. It is essential to establish with different research centers and universities in the Kingdom of Saudi Arabia programs or activities that focus on changes in business, and it will result in gaining competitive advantage and sustainability for Small and Medium Enterprises in the market. Keywords: competitive advantage, innovation, small enterprises, medium enterprises.


2020 ◽  
Vol 29 (1) ◽  
pp. 38-52
Author(s):  
Ishaq Ahmad Dar ◽  
Mridula Mishra

In emerging economies, small and medium enterprises (SMEs) contribute a sizeable proportion of exports and manufacturing output, and millions of people are provided employment. Entrepreneurs and these small firms are influenced by many contextual factors in their operations. Social capital factors, both formal and informal social networks, are considered influential to their performance. This study uses regression analysis to study the impact of social capital dimensions on financial performance of SMEs. Primary data were collected through survey of SMEs of India. It was found that out of five social capital dimensions only four dimensions, such as complicity, status, social relations and personal relations, positively impact the financial performance of SMEs, whereas one dimension ‘Interlinking and family support’ had no significant impact on financial performance of SMEs. The implications of these findings are discussed.


Author(s):  
Svetlana L. Sazanova

Entrepreneurship plays an important role in the modern global economy; the share of products of small and medium enterprises in the gross product and exports not only of the developed but also of developing countries is growing. Innovation processes cover all sectors of the economy, and more and more people are involved in entrepreneurial activity, which contributes to the penetration of entrepreneurial thinking and business values in all areas of the socioeconomic life of society. The Institute of Entrepreneurship plays an increasingly prominent role in the institutional environment of socio-economic systems. This actualizes the problem of studying the relationship of the institution of entrepreneurship with the institutions of law, culture, management. This requires a methodology that allows you to explore the impact on the institute of entrepreneurship not only economic, but also non-economic factors. The methodology of the “old” institutionalism possesses such a tool, it is structural modeling (pattern modeling), which allows to explore the diversity of interrelationships of the institution of entrepreneurship with other components of the institutional and economic environment. The article explored the features of the development of the institution of entrepreneurship in Russia, established the relationship between the institution of entrepreneurship, values, motives and incentives for entrepreneurial activity, built a structural model of the institution of entrepreneurship based on the methodology of the old institutionalism (pattern modeling). The structural model of the institution of entrepreneurship reveals the relationship between the institution of entrepreneurship, the values of entrepreneurial activity, its motives and incentives; as well as the relationship between the institution of entrepreneurship with the institutions of governance, cultural and religious institutions, legal institutions and society.


Author(s):  
Mwinyihija M.

Africa’s renaissance is inevitable and rapidly emerging as a reality in tandem with the continent’s continued exploration of its natural resources in a more sustained way than previously done. Currently, the clarion call is to value add, avoid plundering and involve its population through the SME’s to adapt modern methods of entrepreneurship. During the study, critical aspects that are envisaged to trigger the growth and development of Africa, included the entry of major countries of the continent into the global emerging markets such as MINT (Mexico, Indonesia, Nigeria and Turkey) and BRICS (Brazil, Russia, India, China and South Africa). For the leather sector, certain socioeconomic indicators such as the youthful participation in the value chain, ownership status, literacy levels and acquired experiences are all contributing to a vibrant sector. It was observed that these indicators if well aligned with individual member states of African Union Commission and structured than productivity and competitiveness of leather products will be attained. As such, ease of either foreign direct investment, local recapitalization and development of the SME’s could become feasible. Indeed, with the emergence of over 300 million youth at middle level income level is construed to start building on the impact of the continents purchasing power. Therefore, Africa needs to respond by address on development of ICT, develop affordable financial support to provide stimulus packages to SME’s (Small and Medium Enterprises) to transform, improve on inter and intra trade to optimize on unexplored synergies and enhance mobility of persons with in Africa as preamble to Africa’s renaissance.


2020 ◽  
Vol 9 (2) ◽  
pp. 298
Author(s):  
Muhamad Marwan

The aim of this study is to determine the impact of networking on SME’s ability to access government financial support through legal channels in Asia Pacific. This study is quantitative in nature in which the data has been gathered from 281 employees and managers working in SMEs through survey questionnaire. The SEM technique was utilised for the purpose of analysing and testing the mediation effect. The study found that there is a partial mediation of government financial support through legal channels among the relationship between networking with officers and access to finance. This study is restricted to the SMEs operating in the region of Asia Pacific.


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