Thuy Hang Do, Tim Mazzarol, Thierry Volery and Sophie Reboud
The purpose of this paper is to examine the relationship between the expectations that small business entrepreneurs hold in relation to the future returns from the…
Abstract
Purpose
The purpose of this paper is to examine the relationship between the expectations that small business entrepreneurs hold in relation to the future returns from the commercialisation of innovations, and key organisational elements including inputs, knowledge, culture, strategy, portfolio, project management and commercialisation. More specifically, this research aims to deepen the knowledge of how small- and medium-sized enterprises (SMEs) manage their innovation and identify critical factors determining the potential innovation outcomes.
Design/methodology/approach
This study draws on a large sample of innovative SMEs from multiple Organisation for Economic Co-Operation and Development countries. Data were collected using a questionnaire administered face-to-face with owners-managers or executives of SMEs who made critical decisions for the innovation management of the firm. First, a factor analysis is conducted to identify the most appropriate measures for each variable. Second, the authors test for multicollinearity among independent variables. The final step integrates results from the general linear model analysis that measures the relationship between organisational factors and the anticipated returns.
Findings
Findings suggest that positive expectations over future investment in innovation – as measured by the anticipated rent – are influenced by organisational factors, including innovation strategy, portfolio management, project management, and organisational culture and commercialisation process. Conversely, the resource endowment is not perceived as a barrier to innovation and to the development of a competitive advantage. In addition, industrial knowledge management has an indirect effect on the anticipated returns.
Originality/value
Despite extensive research in innovation management, the role of organisational factors on anticipated returns in SMEs has not been investigated to date. The study provides researchers with new insights into the resource-based view and the theory of entrepreneurial rent from the perspective of innovation management. The findings offer guidance to managers as to potential success factors in enhancing the rent, but also reflect entrepreneurial optimism in the management of innovation.
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Francois Duhamel, Sophie Reboud and Michel Santi
The purpose of this paper is to devise recommendations for firms to formulate modes of value capture for their product innovations, ex ante. More specifically, the research…
Abstract
Purpose
The purpose of this paper is to devise recommendations for firms to formulate modes of value capture for their product innovations, ex ante. More specifically, the research question is: how can innovators try to maximize, ex ante, the appropriation of the rent they can derive from their innovating projects?
Design/methodology/approach
A theoretical framework is developed and proposed to assess modes of value capture of product innovations and two illustrations are provided to show how the framework can work in practice for innovation projects.
Findings
This paper presents a practitioner's view based on the development of an original concept of rent configuration and appropriable rent.
Research limitations/implications
In terms of research limitations, the possible endogeneity of intellectual property protection and the timing of were not considered.
Practical implications
The framework allows a set of predictions regarding modes of value capture for product innovators.
Originality/value
The paper's contribution lies in the proposal of an integrative framework based on the concept of rent configuration, separating analytically three dimensions of innovation value, namely volume, profit and duration. This concept allows the authors to present a richer set of recommendations in comparison to previous frameworks, in order to avoid adopting the form of a yes/no decision tree that tends to over simplify the issues at stake. The authors also contemplate not only erosion effects, but also amplification effects on the rent, which constitutes another contribution of this paper.
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Tim Mazzarol, Sophie Reboud and Geoffrey N. Soutar
The paper aims to examine the management practices of owner‐managers of small businesses seeking to grow their firms. It seeks to better understand their strategic thinking in…
Abstract
Purpose
The paper aims to examine the management practices of owner‐managers of small businesses seeking to grow their firms. It seeks to better understand their strategic thinking in relation to internal and external environmental issues.
Design/methodology/approach
A sample of 204 owner‐managers who had indicated their desire for growth was surveyed using a questionnaire developed from earlier research that examined their strategic and operational behaviour. Follow‐up discussions over their results were conducted face‐to‐face. Data were analysed using confirmatory factor analysis and discriminant analysis.
Findings
Firms that possessed formal written business plans were found to be more likely to have stronger support network partnerships, formal quality assurance and the ability to lead change among employees. A relationship was found between an above average level of annual sales turnover and the personal vision of the owner‐managers.
Research limitations/implications
Although the sample was atypical, in that it was comprised of owner‐managers who had a growth orientation, the study suggests that owner‐managers who have a strong growth orientation are likely to have an enhanced sense of their strategic vision, and the ability to communicate this vision to their employees.
Practical implications
The findings in this paper suggest that owner‐managers from small firms should seek to benchmark their business against industry best practice, but that such benchmarking must be supported by a clear strategic vision and the capacity to communicate this vision to others, particularly employees.
Originality/value
The literature relating to strategic thinking and behaviour within small firms remains underdeveloped, and this paper provides valuable insights into this area.