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Barriers to Innovation among Spanish Manufacturing SMEs

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  • Antonia Madrid‐guijarro
  • Domingo Garcia
  • Howard Van auken

Abstract

Innovation is widely recognized as a key factor in the competitiveness of nations and firms. Small firms that do not embrace innovation within their core business strategy run the risk of becoming uncompetitive because of obsolete products and processes. Innovative firms are a perquisite for a dynamic and competitive economy.This paper reports on the results of a study that examined barriers to firm innovation among a sample of 294 managers of small and medium‐sized enterprises (SMEs) in Spain. The study examined the relation between (1) product, process, and management innovation and (2) 15 obstacles to innovation, which can limit a firm's ability to remain competitive and profitable. Findings of the study show that barriers have a differential impact on the various types of innovation; product, process, and management innovation are affected differently by the different barriers. The most significant barriers are associated with costs, whereas the least significant are associated with manager/employee resistance. Additionally, the results demonstrate that the costs associated with innovation have proportionately greater impact on small than on larger firms.The findings can be used in the development of public policy aimed at supporting and encouraging the innovation among SMEs in Spain. Government policies that encourage and support innovation among all firms, especially small firms, can help countries remain competitive in a global market. Public policy that encourages innovation can enable firms to remain competitive and survive, both of which have direct implications for employment and a country's economic viability. The results may also be insightful for managers who are attempting to encourage innovation. Understanding barriers can assist managers in fostering an innovative culture by supporting new ideas or by avoiding an attitude that creates resistance to new ideas.

Suggested Citation

  • Antonia Madrid‐guijarro & Domingo Garcia & Howard Van auken, 2009. "Barriers to Innovation among Spanish Manufacturing SMEs," Journal of Small Business Management, Taylor & Francis Journals, vol. 47(4), pages 465-488, October.
    • Handle: RePEc:taf:ujbmxx:v:47:y:2009:i:4:p:465-488
    DOI: 10.1111/j.1540-627X.2009.00279.x
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    Citations

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    Cited by:

    1. Rafael Becerra-Vicario & Daniel Ruiz-Palomo & Ana León-Gómez & José Manuel Santos-Jaén, 2023. "The Relationship between Innovation and the Performance of Small and Medium-Sized Businesses in the Industrial Sector: The Mediating Role of CSR," Economies, MDPI, vol. 11(3), pages 1-18, March.
    2. Schiuma, Giovanni & Santarsiero, Francesco, 2023. "Innovation labs as organisational catalysts for innovation capacity development: A systematic literature review," Technovation, Elsevier, vol. 123(C).
    3. Corchuelo Martínez-Azúa, Beatriz & Ferreiro Seoane , Francisco J., 2019. "Agri-food industry in Extremadura: obstacles to innovation, willingness to innovate, and demanded public actions," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 45, pages 181-199.
    4. Diogo Pombo & Mário Franco, 2023. "A qualitative investigation of infusing products with service via strategic alliances among SMEs: a case of servitization," Service Business, Springer;Pan-Pacific Business Association, vol. 17(2), pages 529-555, June.
    5. Ahunjonov Umidjon & Hu Shuhua & Bandula Jayathilake & Mu Renyan, 2014. "Characteristics of Small and Medium Enterprise Innovativeness: Cases of Uzbekistan and China," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 1(1), pages 12-27, December.
    6. S. M. Ferdous Azam & Moha A. Abdullah, 2015. "Differential Roles between Owner and Manager in Financial Practice that Contributes to Business Success: an Analysis on Malaysian Small Business," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 4, April.
    7. Annosi, Maria Carmela & Capo, Francesca & Appio, Francesco Paolo & Bedetti, Ivan, 2023. "Unveiling micro-foundations of digital transformation: Cognitive models, routines, and organizational structures in agri-food SMEs," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    8. Lorenzo Ardito, 2023. "The influence of firm digitalization on sustainable innovation performance and the moderating role of corporate sustainability practices: An empirical investigation," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5252-5272, December.
    9. Vo, Long Hai & Le, Thai-Ha & Park, Donghyun, 2022. "Digital Divide Decoded: Can E-Commerce and Remote Workforce Enhance Enterprise Resilience in the COVID-19 Era?," ADB Economics Working Paper Series 667, Asian Development Bank.
    10. Istipliler, Baris & Bort, Suleika & Woywode, Michael, 2023. "Flowers of adversity: Institutional constraints and innovative SMEs in transition economies," Journal of Business Research, Elsevier, vol. 154(C).

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