Innovation capability development: case studies of small enterprises in the LMT manufacturing sector

ABSTRACT

Competitiveness in lower tech, small-to-medium sized enterprises (LMT-SMEs) depends as much on innovation as it does in high tech, larger counterparts. For many decades, innovation studies have focused on the latter sector that is differentiated from the former in one key respect – business investment in research and development (BERD). LMT-SMEs have low reported BERD and according to the OECD spend less than 3% of turnover on R&D. This figure masks hidden investments in non-traditional innovation that often goes unreported by managers. Adopting a case study approach, this research seeks to address two questions: ‘what innovation is occurring within LMT-SME’ and ‘what are the capabilities developed that support innovation activity’, allowing such firms to dynamically adapt to external environment turbulence. In exploring these issues, this study goes some way towards bridging the gap in the understanding of innovation in this often ‘forgotten sector’ [Hirsch-Kreinsen, H., & Jacobson, D. (Eds.). (2008). Innovation in low-tech firms and industries. Cheltenham: Edward Elgar].

KEYWORDS:

• Innovation
• small enterprises
• dynamic capabilities
• innovation capability
• LMT manufacturing

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes on contributors

Lawrence Dooley (M. Comm., Ph.D.) is a College Lecturer in Enterprise and Innovation at University College Cork (UCC). Prior to joining UCC, he was based at the Centre for Enterprise Management in the University of Dundee, Scotland. He undertook his doctoral thesis entitled ‘Systems Innovation Management’ at the National University of Ireland, Galway. His core research interests focus on organisational innovation and issues related to inter-enterprise collaboration and value creation, especially in the SME context. Other related interests include creativity, portfolio management and knowledge exchange. He has published widely over recent years and actively liaises with industry both through applied research projects and consultancy.

Breda Kenny is head of CIT's Hincks Centre for Entrepreneurship Excellence and has many years lecturing and research experience in entrepreneurship, international business and management. Breda is responsible for managing national and EU projects and research supervision at PhD level. She has been published in international peer-reviewed journals such as R & D Management, International Journal of Entrepreneurial Behaviour and Research, Industry & Higher Education, and The Journal of Small Business and Enterprise Development. Breda obtained her PhD from the University of Limerick. The area of her doctoral work focused on networking capability and the international performance of High Tech SMEs. At a European level, Breda is a member of the board of the European Council for Small Business and Entrepreneurship (ECSB). In Ireland, Breda is a Chair of the Campus Enterprise & Entrepreneurship Network (CEEN) Initiative. Breda has extensive industry experience and is also co-founder and director of Surecom NS Ltd, and director of the Rubicon Innovation Centre.

David O'Sullivan is Professor of Industrial Engineering at the School of Engineering and Informatics and also Director of Quality ‐ both at the National University of Ireland Galway. His research interests are in the area of innovation management and quality in higher education. His most recent research projects include innovation management within SMEs and the impact of QA in higher education. David has over 150 publications including books ‐ Applying Innovation (Sage), Manufacturing Systems Redesign (Prentice‐Hall), Reengineering the Enterprise (Chapman & Hall), and The Handbook of IS Management (Auerbach). David also plays a key role in strategic and operational planning, quality assurance and enhancement, and performance development at his University.