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Achieving Innovation In A Lean Environment: How Innovative Small Firms Overcome Resource Constraints

Author

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  • DAVID DEAKINS

    (Department of Entrepreneurship, Strategy and Innovation, Lancaster University Management School, Lancaster University, UK)

  • JO BENSEMANN

    (#x2020;School of Management, Massey University, New Zealand)

Abstract

This paper examines how innovative small firms achieve innovation within lean environments. Writers taking a resource-based view (RBV) approach to innovation by small firms in lean environments have argued that they are resource-constrained through shortages of skilled labour, finance and social networks. This paper builds on the RBV approach by adopting a dynamic capabilities (DCs) lens to investigate how innovative small firms adopt and acquire DCs to achieve innovation in a lean environment in a small country with an open economy that is distant from major markets. We argue that entrepreneurs will engage in pragmatic solutions to overcome resource constraints. We provide qualitative evidence from a programme of 30 interviews and find that innovative small firms achieve innovation through ingenuity and patience. Our entrepreneurs use methods such as bricolage and bootstrapping and make cooperative arrangements with early adopters to maximise use of their limited resources.

Suggested Citation

  • David Deakins & Jo Bensemann, 2019. "Achieving Innovation In A Lean Environment: How Innovative Small Firms Overcome Resource Constraints," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(04), pages 1-36, May.
    • Handle: RePEc:wsi:ijimxx:v:23:y:2019:i:04:n:s1363919619500373
    DOI: 10.1142/S1363919619500373
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    1. Mansi Singh & Sanjay Dhir & Harsh Mishra, 2023. "Analysing the Antecedents of Entrepreneurial Bootstrapping and Bricolage: A Modified Total Interpretive Structural Modelling and MICMAC Approach," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(1), pages 7-38, March.

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