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R&D Network and value Creation in SMEs

Author

Listed:
  • Ale Ebrahim, Nader
  • Ahmed, Shamsuddin
  • Taha, Zahari

Abstract

Research and development functions are fundamental drivers of value creation in technology-based Small and Medium enterprises (SMEs) seemingly successful R&D is a function of innovation processes and R&D networks. There is a perceived lack of understanding regarding the importance of SMEs and their need to continuously enhance their technological capabilities for the purpose of establishing themselves a dominant market position. In this paper R&D network issues from the perspective of their impact on value creation in SMEs have been studied. One very important trend to enable new knowledge creation and transfer in and to SME's is the development of collaborative environments and networks to increase their innovation capabilities as a single unit but also the capabilities of the network as a whole through collective learning. SMEs seem to be appropriate units to behave like network nodes because of their lean structure, adaptability to market evolution, active involvement of versatile human resources, ability to establish sub-contracting relations and good technological level of their products. SMEs not only shape the larger outcome, but also constrain actions of the state and MNCs in demand-responsive, buyer-driven networks. The objective of this paper is the notice to creation of a network of SMEs that are perhaps geographically dispersed but virtually linked so that the participating members focus on their specialized tasks yet also share their knowledge and experience resources to create an agile structured and flexible enterprise.

Suggested Citation

  • Ale Ebrahim, Nader & Ahmed, Shamsuddin & Taha, Zahari, 2008. "R&D Network and value Creation in SMEs," MPRA Paper 27218, University Library of Munich, Germany, revised Apr 2008.
  • Handle: RePEc:pra:mprapa:27218
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    File URL: https://mpra.ub.uni-muenchen.de/27218/1/MPRA_paper_27218.pdf
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    References listed on IDEAS

    as
    1. Mezgar, Istvan & Kovacs, Gyorgy L. & Paganelli, Paolo, 2000. "Co-operative production planning for small- and medium-sized enterprises," International Journal of Production Economics, Elsevier, vol. 64(1-3), pages 37-48, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    R&D; Network; value Creation; SMEs;

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • P42 - Economic Systems - - Other Economic Systems - - - Productive Enterprises; Factor and Product Markets; Prices
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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