Page 23 - Gričar, Sergej, Barbara Rodica and Štefan Bojnec, 2016. Sandwich Management. Koper: University of Primorska Press
P. 23
Inovation in SME 23
Innovation Strategies and Performance in Small Enterprises
Innovation is a core process in entreprise, within an enterprise associat-
ed with renewal – with refreshing what it offers the world and how it cre-
ates and delivers that offering. Tidd, Bessant, and Pavitt (2005) represent
innovation process with: searching – scanning the environment for, and
processing relevant signals about, threats and opportunities for change; se-
lecting – deciding which of these signals to respond to; implementing –
translating the idea into something new, acquiring the knowledge resourc-
es to enable the innovation, executing the project, launching the innovation
and managing the process, sustaining adoption and use; learning – enter-
prises have the opportunity to learn from progressing through this cycle.
Two features of the enterprise environment have a major influence on its
innovation strategy: first, the national system of innovation in which the
enterprise is embedded and second, its market position compared to com-
peting firms (Tidd, Bessant, and Pavitt 2005, 131). There is important to
emphasize that the national system of innovation partly defines enterprise
range of choices dealing with opportunities and threats. Also are the inno-
vation-based opportunities and threats connected with enterprise market
position. The main factors that influence local demands for innovation are:
local buyers’ tastes, private investment activities, public investment activi-
ties, input prices, local natural resources (Tidd, Bessant, and Pavitt 2005).
The concepts of innovation, introducing solid arrangement as concept
»six sigma« comes to the fore design strategy. It introduces innovation by
focusing on the customer. The new gurus of innovation focused on the so-
called micro-innovation (Mulej et al. 2009).
Opportunities for innovation in small firms are strongly influenced by
the »system of innovation in which they are embedded« (Tidd, Bessant,
and Pavitt 2005, 161). The frequency of innovation in enterprises with few-
er than 100 employees is much lower than in larger. Tidd, Bessant, and
Pavitt (2005) also believe that it is important to know that smaller enter-
prises make less frequent use of outside sources of knowledge. Opportuni-
ties for innovation in small enterprises are strongly influenced by the inno-
vativeness of their suppliers. Innovative SMEs have limited resources and
relative lack of non-core expertise. SMEs tend to engage in various forms
of cooperation to accelerate growth. Innovative SMEs must develop ade-
quate intellectual property (IP) management strategies drawing from these
categories: formal, registered intellectual property protection; alternative
strategies including secrecy; and hybrid strategies (Brant and Lohse 2013).
Most enterprises in the service sector are relatively small. A company’s
strategy may often require investing most resources in current lines. But
Innovation Strategies and Performance in Small Enterprises
Innovation is a core process in entreprise, within an enterprise associat-
ed with renewal – with refreshing what it offers the world and how it cre-
ates and delivers that offering. Tidd, Bessant, and Pavitt (2005) represent
innovation process with: searching – scanning the environment for, and
processing relevant signals about, threats and opportunities for change; se-
lecting – deciding which of these signals to respond to; implementing –
translating the idea into something new, acquiring the knowledge resourc-
es to enable the innovation, executing the project, launching the innovation
and managing the process, sustaining adoption and use; learning – enter-
prises have the opportunity to learn from progressing through this cycle.
Two features of the enterprise environment have a major influence on its
innovation strategy: first, the national system of innovation in which the
enterprise is embedded and second, its market position compared to com-
peting firms (Tidd, Bessant, and Pavitt 2005, 131). There is important to
emphasize that the national system of innovation partly defines enterprise
range of choices dealing with opportunities and threats. Also are the inno-
vation-based opportunities and threats connected with enterprise market
position. The main factors that influence local demands for innovation are:
local buyers’ tastes, private investment activities, public investment activi-
ties, input prices, local natural resources (Tidd, Bessant, and Pavitt 2005).
The concepts of innovation, introducing solid arrangement as concept
»six sigma« comes to the fore design strategy. It introduces innovation by
focusing on the customer. The new gurus of innovation focused on the so-
called micro-innovation (Mulej et al. 2009).
Opportunities for innovation in small firms are strongly influenced by
the »system of innovation in which they are embedded« (Tidd, Bessant,
and Pavitt 2005, 161). The frequency of innovation in enterprises with few-
er than 100 employees is much lower than in larger. Tidd, Bessant, and
Pavitt (2005) also believe that it is important to know that smaller enter-
prises make less frequent use of outside sources of knowledge. Opportuni-
ties for innovation in small enterprises are strongly influenced by the inno-
vativeness of their suppliers. Innovative SMEs have limited resources and
relative lack of non-core expertise. SMEs tend to engage in various forms
of cooperation to accelerate growth. Innovative SMEs must develop ade-
quate intellectual property (IP) management strategies drawing from these
categories: formal, registered intellectual property protection; alternative
strategies including secrecy; and hybrid strategies (Brant and Lohse 2013).
Most enterprises in the service sector are relatively small. A company’s
strategy may often require investing most resources in current lines. But
