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Overcoming Failure: Abandonments and Delays of Innovation Projects in SMEs

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  • Sonja Radas
  • Ljiljana Bozic

Abstract

Innovation development is a very complex and risky activity that requires adequate financial resources and appropriate skills and knowledge. Due to the complexity of the development process, innovation project can be either delayed or abandoned. In this paper we investigate factors that make it possible for small and medium enterprises (SME) that experienced delays or abandonment to continue innovating. While in SMEs weak resources and capabilities contribute to occurrence of development problems, this study suggests that SMEs can enhance their efficiency to produce innovative output by improving their capabilities (external or internal). These capabilities augment the value of resources and can be acquired through external collaboration, non-technological innovation or former innovations. These capabilities have larger effect on the development of new services than on new products.

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File URL: http://hdl.handle.net/10.1080/13662716.2012.739769
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Industry and Innovation.

Volume (Year): 19 (2012)
Issue (Month): 8 (November)
Pages: 649-669

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Handle: RePEc:taf:indinn:v:19:y:2012:i:8:p:649-669

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