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This study deals with the impact of resource scarcity on the innovation performance of small- and medium-sized enterprises (SMEs). The purpose of this paper is to scrutinise whether resource scarcity among SMEs has an effect on their innovation performance.

The sample was based on panel data for 302 SMEs from the mechanical and electrical engineering sectors. Firms were divided into four groups by resource scarcity: human resource scarcity, financial resource scarcity, both types of resource scarcity and no resource scarcity. To test for significant inter-group differences in innovation performance, multivariate analysis of covariance and a multiple discriminant function analysis were carried out.

The results indicated that resource scarcity can have a positive effect on incremental but not radical innovation performance in SMEs. However, the authors found this to be true for financial resource scarcity only.

These results may not be applicable to all SMEs, as the authors only focused on the industries of mechanical and electrical engineering. Future studies should focus on analysing the internal structures of SMEs that led to this study’s results. More research should also be conducted on ways that resource-limited SMEs can appropriately conduct radical innovations. Finally, resources should be made available for both practitioners and academics, explaining why the acquisition of resources is not always be the best option in response to limited resources.

These results indicate that resource-constrained SMEs, especially those that struggle with limited finances, should concentrate their innovation activities on incremental rather than radical innovations.

This study closes the knowledge gap as to whether it is beneficial for resource-limited SMEs to focus on either incremental or radical innovation. From the theoretical viewpoint, the resource-based view provides two strategies for resource-limited SMEs: acquiring new resources or recombining available resources. The authors were able to clearly demonstrate for the first time that the recombination of resources is especially important for SMEs that specifically wish to pursue incremental innovation.

This study deals with waste in New Product Development (NPD) processes of SMEs. The purpose of this paper is to reveal opportunities for SMEs to overcome resource constraints in their NPD process.

The authors employed qualitative key informant interviews. This design was chosen because research in this field is still limited. The authors performed 49 interviews in engineering-oriented German SMEs to examine the dimension of waste in NPD processes. The data were collected by conducting semi-structured, face-to-face interviews.

The study highlights substantial waste types such as waiting times, rework and duplication of work. In contrast to contemporary literature, waste of material is considered to be relevant in particular for NPD processes of SMEs. In addition to that, the authors found that waste drivers differ to a great extent between the study and the hitherto literature on larger companies.

The overall outcome of this study can help organisations to address waste in NPD more thoroughly. The research presented was not specifically designed to draw statistical generalisations. For this reason, the results may not be applicable to all SMEs.

Based on waiting times as the major waste type in NPD processes of SMEs, the authors claim that firms should pay special attention to disruptions of these processes.

The paper gives insights into current waste types in the NPD processes of SMEs. Moreover, it uncovers the NPD activities which can lead to waste.

This study analyses new product development (NPD) processes of small- and medium-sized enterprises (SMEs). The purpose of this paper is to find successful innovation processes of SMEs on the one hand, and to reveal starting points to further improve these processes on the other.

Data were gathered from 49 semi-structured, face-to-face interviews with German firms. From the total of 49 cases, the authors identified three manufacturing SMEs with high-performing innovation processes, whose NPD processes the authors took as best practice examples. The authors then used the design structure matrix to map these three NPD processes, and optimised the sequence by applying an optimisation algorithm.

The authors determined which activities could be done sequentially, in parallel, or overlapping. The authors also scrutinised the position of dynamic milestones and demonstrated that the best-performing SMEs had flexible NPD processes, which allowed for an accelerated innovation process.

Due to the qualitative design of the investigation, the research presented was not specifically designed to draw statistical generalisations. For this reason, the results may not be applicable to all SMEs.

The authors recommend that SMEs uncouple activities as much as possible. In this regard, the findings revealed that that especially technical and economic activities may be conducted in parallel due to their low dependence.

The paper offers an SME-specific NPD process to optimise the innovation performance. Moreover, the findings deliver new knowledge on how the best-performing SMEs innovate.