| dc.description.abstract | Context and Purpose:
This dissertation was based on the authors own practical experience of working with
small and micro-enterprises (SaMEs) over eighteen years. In his experience, many
business development models, originally developed around large firms, do not take
account of the needs and characteristics of SaMEs, including innovation theories and
models which base their research on large multinational organisations with apparently
little consideration for how innovation is developed, managed or measured in SaMEs.
Therefore, the author decided to undertake research into innovation in SaMEs in
Donegal. The three overall objectives of this research study were to:
Identify what SaMEs in Donegal understand by the term ‘innovation’
Investigate innovation practice(s) in SaMEs in Donegal
Identify how innovation can be effectively measured within SaMEs.
Design / Methodology / Approach
In a process similar to Andrews et al. (2008), a detailed literature review was undertaken
which guided subsequent research activities where data was collected using in-depth
interviews. The two stages of data collection were:
1. Literature review supported by in-depth interviews with key informants
(government bodies, agencies) who provided an insight to innovation practices
within the county
2. In-depth interviews which provided a comprehensive view of the understanding,
practice, motivations, behaviours and attitudes towards innovation and its
measurement amongst SaMEs in Donegal
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Findings:
While very few SaMEs are aware of innovation theories, processes and procedures,
practically all of them engage in some form of innovative activity. They possess a broad
understanding of the ‘concept’ of innovation and are aware of its benefits. Enterprises
engage in a wide range of innovations across products, processes, people, marketing, etc.
and innovation is very important to them. However, innovation is not a managed or
systematic process and while this is often due to lack of resources, the small size and
flexible nature of SaMEs also means that innovative proposals with merit can be assessed
and acted upon quickly.
Many enterprises in Donegal do not engage with existing innovation networks/clusters as
they feel that they are not suited to their needs. The main innovation barriers include
lack of time and management support for innovation, the financial risk associated with
innovations, poor ICT infrastructure, complacency amongst SaMEs and high costs of
innovation including prototyping, IP, etc. Few SaMEs measure innovation activities and
some only measure innovation because management accounts provide them with the
information to facilitate this. A significant point to emerge from the study was the
benefits of management accounts to SaMEs.
Research Limitations:
Very little information exists on innovation in micro enterprises. Furthermore, innovation
is a very broad subject and while a number of significant themes emerged from the
literature review, it was not feasible, as part of a Masters dissertation, to investigate
these issues by means of an extensive quantitative survey with SaMEs.
Originality / Value
This paper seeks to provide an insight into the understanding which regionally-based,
SaMEs have of innovation and whether, given their unique characteristics, they can
practically use accepted innovation management theories, tools, etc. It also seeks to
inform support organisations and other enterprises as to the challenges faced by
regionally-based SaMEs in trying to implement innovation activities and whether current
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support structures adequately address their needs. Finally, it seeks to establish whether
innovation in SaMEs is effectively measured and whether innovation metrics have
benefits for such organisations.
Suggestions for Further Research:
Further consideration should be given to whether recognised innovation management
systems, models and structures as opposed to flatter, more organic innovation models
are best suited to SaMEs. Also, can current support structures, networks, clusters, etc., be
effectively tailored so that they are responsive to the real needs of SaMEs, and can
current support organisations and policy makers present innovation more simply to
SaMEs in a way which is easy to understand and practical to manage and which can
demonstrate clear growth benefits. The benefits of effective management accounting
systems which accrue to SaMEs in terms of knowledge management, innovation
management and marketing activities should also be considered. Finally, as little research
exists in relation to innovation in micro enterprises further studies should be undertaken
in this area. | en |
