Importance of Innovation for European SMEs: Perception of Experts
| Autor | Daniel Luís Arenhardt - Eugênio de Oliveira Simonetto - Glauco Oliveira Rodrigues |
| Cargo | Doutorando do Programa de Pós-graduação em Administração da Universidade Federal de Santa Maria - Doutor em Administração pela Universidade Federal do Rio Grande do Sul - Doutorando do Programa de Pós-graduação em Administração da Universidade Federal de Santa Maria |
| Páginas | 21-37 |
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IMPORTANCE OF INNOVATION FOR EUROPEAN SMES: PERCEPTION
OF EXPERTS
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IMPORTANCIA DE LA INNOVACIÓN PARA LAS PYMES EUROPEAS: PERCEPCIÓN DE ESPECIALISTAS
IMPORTÂNCIA DA INOVAÇÃO PARA AS PMES EUROPEIAS: PERCEPÇÃO DE ES PECIALISTAS
DANIEL LUIS ARENHARDT
ii
EUGÊNIO DE OLIVEIRA SIMONETTO
iii
GLAUCO OLIVEIRA RODRIGUES
iv
CITATION
Arenhardt, Daniel L., de Oliveira-Simonetto, Eugênio & Oliveira-Rodrigues, Glauco (2018). Importance of
innovation for european SMES: perception of experts, Dimensión Empresarial, 16(2), 21-37. DOI:
http://dx.doi.org/10.15665/dem.v16i2.1450
JEL: O32, Q55
ABSTRACT
This study is about innovation in small and medium-sized enterprises and is based on data collected from
innovation experts based in the European Union with extensive knowledge of this target audience in that economic
block. By means of variables constructed from the seven rules of innovation (Davila et al., 2006), the study
measured the expert’s opinion on the relevance that SMEs attribute to the factors that lead to innovation, according
to the degree of development of their countries. Conversely to the formulated hypothesis, SMEs from less
developed countries seem more aware of the benefits that innovation can bring to their businesses.
Keywords: SMEs; Innovation; Innovation in SMEs.
RESUMEN
Este estudio tiene como tema la innovación en pequeñas y medianas empresas y se basa en datos recogidos de
expertos en innovación con sede en la Unión Europea con un amplio conocimiento de la realidad de las PYME de
ese bloque económico. A través de variables construidas a partir de las siete reglas de innovación (Davila et al.,
2006), el trabajo midió la opinión de los especialistas en cuanto a la relevancia que las PYME atribuyen a los factores
que conducen a la innovación, de acuerdo con el grado de desarrollo de sus países. En cambio, a la hipótesis
formulada, se constató que PYME de países menos desarrollados parecen más conscientes de los beneficios que la
innovación puede traer a sus negocios.
Palabras clave: PYMES; Innovación; Innovación en PYMES.
RESUMO
Esse estudo tem como tema a inovação em pequenas e médias empresas e baseia-se em dados coletados de
especialistas em inovação sediados na União Europeia com amplo conhecimento desse público-alvo naquele bloco
econômico. Por meio de variáveis construídas a partir das sete regras de inovação (Davila et al., 2006), o trabalho
mensurou a opinião dos especialistas quanto à relevância que PMEs atribuem aos fatores que conduzem à inovação,
de acordo com grau de desenvolvimento de seus países. Inversamente à hipótese formulada, constatou-se que países
menos desenvolvidos parecem mais conscientes dos benefícios que a inovação pode trazer aos seus negócios.
Palavras-chave: PMEs; Inovação; Inovação em PMEs.
DANIEL LUIS ARENHARDT, EUGÊNIO DE OLIVEIRA SIMONETTO & GLAUCO OLIVEIRA RODRIGUES
Página 22
INTRODUCTION
Small and medium-sized enterprises (SMEs) have
unique characteristics that differentiate them from
large organizations. These characteristics can be
determined by the inherent behavior of the
owner/manager, by the size, and stage of the
company's development (Gilmore et al., 2001). They
are less able than large corporations to model and
influence their external environment, for example, in
their relationships with customers, suppliers, funding
sources, and the labor market. This means that the
smaller firm is usually confronted with a more
uncertain external environment than a larger firm
(North et al., 2001). In this scenario of constant
challenges, innovation has become increasingly
important for the survival of SMEs and for
establishing a competitive advantage over their
competitors.
SMEs innovate differently than large companies.
They have fewer resources and often face more
uncertainty and barriers to innovation. However,
these deficiencies can be partially overcome by their
integration in innovation systems (Tödtling &
Kaufmann, 2001). Innovation management also
influences organizational design, as it forces SMEs to
change their structure (Aragón-Sánchez & Sánchez-
Marín, 2005). A number of practices can be adopted
by SMEs to drive innovation, including: cooperation
with customers (Laforet, 2011, Miotti & Sachwald,
2003), cooperation with suppliers (Eisenhardt &
Tabrizi, 1995; Kaufmann & Tödling, 2002; Miotti &
Sachwald, 2003; Verhees & Meulenberg, , 2004),
cooperation with universities and research institutes
(Doh & Kim, 2014; Jones & Zubielqui, 2016),
Research and Development investment (Doh & Kim,
2014; Faber et al., 2016; Gu et al., 2016), properly
manage the company's knowledge (Liao and Barnes,
2015; Maes and Sels, 2014), networks and/or alliances
working (Gilmore et al., 2001; Iturrioz et al., 2015;
Romijn & Albaladejo, 2002), among others.
However, it is unclear whether the innovation
practices of SMEs in developed countries can be
transferred to developing country companies.
Research involving this issue is scarce, especially
considering differences between countries in the same
region or economic bloc, such as the European
Union. According to Croucher, et al. (2013), this issue
is comprehensive and there is the risk of holding a
simplistic dichotomy “developed/developing”
simplistic dichotomy if only superficial analyzes are
carried out on the topic. In most cases, existing
innovation studies have been conducted in large firms
in advanced countries such as the United States,
Germany, and the United Kingdom. In the view of
Salavou et al. (2004), few studies are found on the
experiences of smaller countries at different stages of
development - which would be extremely important
given the differences found in national conditions
that affect companies' performance and conduct in its
operating environment. According to Williams &
Woodson (2012), innovation in developing countries
is subject to different capital and infrastructure
challenges in relation to innovation in industrialized
nations; therefore, can not necessarily be explained by
the same concepts used to explain innovation in
developed countries.
About SMEs in the EU member states, together, they
account for 99% of all organizations, representing
approximately 23 million small and medium-sized
enterprises (EUROPEAN UNION, 2017). However,
even in the case of a single bloc of economic
cooperation, different realities are found among their
countries. In this regard, there is, for example, the
differences in GDP per capita, where the figures
range from US$ 77,480 (Luxembourg) to US$ 7,480
(Bulgaria) (WORLD BANK, 2015), confirming the
political and economic inequalities that exist among
its member countries. Add to this the economic crises
that some countries of the bloc have faced in recent
years, specifically Greece, but making vulnerable
countries like Ireland, Portugal, and Spain (Lane,
2012).
All these questions lead the authors of this article to
believe that there are differences of perception about
the importance of innovation by SMEs, according to
the country in which they are located. In this sense,
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