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Determining Factors in Innovation of Small Firm Networks: A case of Cross Industry Groups in Japan

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  • Nobuya Fukugawa

Abstract

We examine the relationship between network characteristics and innovation under different phases of innovation. Based on micro data of cross industry groups, small firm networks for knowledge sharing and R&D cooperation, we show that close-knit networks, represented as dense communication and a high level of commitment among members, are correlated with initiating joint product development. Furthermore, the results show that establishing contact with external sources of knowledge such as public research institutes is important to achieve technical success in innovation. Lastly, engaging in cooperative activities in sales is correlated with commercial success in innovation. Copyright Springer 2006

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  • Nobuya Fukugawa, 2006. "Determining Factors in Innovation of Small Firm Networks: A case of Cross Industry Groups in Japan," Small Business Economics, Springer, vol. 27(2), pages 181-193, October.
    • Handle: RePEc:kap:sbusec:v:27:y:2006:i:2:p:181-193
    DOI: 10.1007/s11187-006-0010-2
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    1. Rabeh Morrar & Faïz Gallouj & Hakim Hammadou, 2012. "Public-private innovation networks and innovation activities in French service firms," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 191-217.
    2. Miguelez, Ernest, 2019. "Collaborative patents and the mobility of knowledge workers," Technovation, Elsevier, vol. 86, pages 62-74.
    3. Hang Thu Nguyen & Tra Thi Dan Vu & Hiep Manh Nguyen & Michael Troege, 2022. "Political embeddedness and the adoption of environmental management practices: The mediating effects of institutional pressures," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 965-983, July.
    4. de Jong, Jeroen P.J. & Freel, Mark, 2010. "Absorptive capacity and the reach of collaboration in high technology small firms," Research Policy, Elsevier, vol. 39(1), pages 47-54, February.
    5. Dr. Gilbert E. Jones, 2017. "Knowledge sharing and technological innovation: The effectiveness of trust, training, and good communication," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1387958-138, January.
    6. FUKUGAWA Nobuya & GOTO Akira, 2016. "Problem Solving and Intermediation by Local Public Technology Centers in Regional Innovation Systems: The first report on a branch-level survey on technical consultation," Discussion papers 16062, Research Institute of Economy, Trade and Industry (RIETI).
    7. Byungun Yoon & Juneseuk Shin & Sungjoo Lee, 2016. "Open Innovation Projects in SMEs as an Engine for Sustainable Growth," Sustainability, MDPI, vol. 8(2), pages 1-27, February.
    8. Lin, Feng-Jyh & Wu, Shang-He & Hsu, Maw-Shin & Perng, Chyuan, 2016. "The determinants of government-sponsored R&D alliances," Journal of Business Research, Elsevier, vol. 69(11), pages 5192-5195.
    9. Feng-Jyh Lin & Yi-Hsin Lin, 2012. "The determinants of successful R&D consortia: government strategy for the servitization of manufacturing," Service Business, Springer;Pan-Pacific Business Association, vol. 6(4), pages 489-502, December.
    10. Ezzi Ferdaws & Jarboui Anis & Zouari-Hadiji Rim, 2020. "CSR categories and R&D investment: the moderating role of Managerial emotional intelligence," Management & Marketing, Sciendo, vol. 15(1), pages 17-37, March.
    11. Hyeon Chang Kim & Woojin Yoon, 2019. "Study On Types Of Technology Cooperation Partner And Innovation Performance: Focusing On Incremental And Radical Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-25, January.
    12. Ciliberti, Stefano & Carraresi, Laura & Broering, Stefanie, 2016. "External Knowledge Sources as Drivers for Cross-Industry Innovation in the Italian Food Sector: Does Company Size Matter?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(3), pages 1-22, August.
    13. Gary Akehurst & José Comeche & Miguel-Angel Galindo, 2009. "Job satisfaction and commitment in the entrepreneurial SME," Small Business Economics, Springer, vol. 32(3), pages 277-289, March.
    14. Fernández-Olmos, Marta & Ramírez-Alesón, Marisa, 2017. "How internal and external factors influence the dynamics of SME technology collaboration networks over time," Technovation, Elsevier, vol. 64, pages 16-27.
    15. Ediriweera, Amali & Wiewiora, Anna, 2021. "Barriers and enablers of technology adoption in the mining industry," Resources Policy, Elsevier, vol. 73(C).
    16. Zahoor, Nadia & Al-Tabbaa, Omar, 2020. "Inter-organizational collaboration and SMEs’ innovation: A systematic review and future research directions," Scandinavian Journal of Management, Elsevier, vol. 36(2).
    17. David B. Audretsch & Christina Guenther, 2023. "SME research: SMEs’ internationalization and collaborative innovation as two central topics in the field," Journal of Business Economics, Springer, vol. 93(6), pages 1213-1229, August.
    18. Okamuro, Hiroyuki, 2007. "Determinants of successful R&D cooperation in Japanese small businesses: The impact of organizational and contractual characteristics," Research Policy, Elsevier, vol. 36(10), pages 1529-1544, December.
    19. Toroslu, Adrian & Herrmann, Andrea M. & Chappin, Maryse M.H. & Schemmann, Brita & Castaldi, Carolina, 2023. "Open innovation in nascent ventures: Does openness influence the speed of reaching critical milestones?," Technovation, Elsevier, vol. 124(C).
    20. Nobuya Fukugawa, 2011. "Impacts and channels of university spillovers before the national innovation system reform in Japan," International Journal of Transitions and Innovation Systems, Inderscience Enterprises Ltd, vol. 1(4), pages 383-393.
    21. Alexander Karlik & Vladmir Platonov, 2016. "Cross-Industry Spatially Localized Innovation Networks," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1218-1232.
    22. Carlos M. F-Jardón, 2011. "Deployment of Core Competencies to obtain success in SMEs," Working Papers 1106, Universidade de Vigo, Departamento de Economía Aplicada.
    23. Ronen Harel & Dafna Schwartz & Dam Kaufmann, 2019. "Open Innovation In Small Businesses In The Industry And Craft Sectors," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(04), pages 1-33, May.
    24. Lambrecht, Evelien & Kühne, Bianka & Gellynck, Xavier, 2015. "Success factors of innovation networks: Lessons from agriculture in Flanders," 2015 International European Forum (144th EAAE Seminar), February 9-13, 2015, Innsbruck-Igls, Austria 206250, International European Forum on System Dynamics and Innovation in Food Networks.

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