Thesis
Innovation practices at established SMEs : examining leadership approach, cross-functional integration, and inter-organisational collaboration as key drivers of innovation
- Creator
- Rights statement
- Awarding institution
- University of Strathclyde
- Date of award
- 2025
- Thesis identifier
- T17463
- Person Identifier (Local)
- 201676937
- Qualification Level
- Qualification Name
- Department, School or Faculty
- Abstract
- Innovation is the cornerstone of sustained economic growth and prosperity. Over the past few decades, more focus has been placed on innovation in small and medium-sized enterprises (SMEs), which are recognised as the engines of economic growth and social development worldwide. While startups and high-growth firms are the primary contributors to these outcomes, local ecosystems also benefit significantly from established small and medium-sized enterprises, which create job opportunities and foster innovation. Encouraging innovation within established SMEs can help bridge the productivity and wage gaps between SMEs and larger organisations while alleviating poverty in surrounding areas. Despite their importance, there is a distinct lack of research about innovation in established small and medium-sized businesses. Thus, this study aims to fill this gap by investigating and understanding the mechanisms that drive innovation practices in established small and medium-sized manufacturing enterprises, thereby contributing to the existing literature on innovation practices among SMEs. This study adopts a holistic approach to innovation management, examining it as a process through which businesses develop new concepts to enhance the value of existing products or processes, thereby securing a competitive edge over other companies. The research focuses on firms' innovative capabilities, including managerial, intra-organisational, and inter-organisational determinants, which significantly influence their ability to innovate. The managerial stream examines leadership approaches and how they facilitate innovative behaviour within the firm and encourage the diffusion of innovation. The intra-organisational stream focuses on cross-functional integration, examining how internal actors communicate to transfer knowledge, collaborate to achieve common goals, and coordinate joint activities across functions. Lastly, the inter-organisational stream explores the creation of networks and external collaborations with various actors that facilitate knowledge transfer and diffusion of innovation. This approach emphasises a more holistic understanding of innovation management, unrestricted by the type, result, or subject of innovation. Since this research focuses on resources and capabilities, two theoretical frameworks—the resource-based view (RBV) and social capital theory (SCT)—were employed to investigate and comprehensively understand the underlying mechanisms that drive innovation in organisations. The RBV provides valuable insight into how a firm's resources and capabilities are organised and managed to enable it to innovate and gain a competitive advantage. The SCT, on the other hand, complements and strengthens this understanding by offering a comprehensive insight into how social relationships and networks within and beyond the firm are leveraged to foster innovative practices. Furthermore, an abductive research methodology was employed to gain a deeper understanding of the mechanisms that drive innovation and shape the chosen strategies. The approach involved in-depth interviews with owner-managers and employees engaged in innovation practices, as well as personal observations. The research employed a critical realism paradigm, offering a philosophical lens for examining the subject matter. The research findings provide practical implications and add value to the existing literature on innovation practices among small and medium-sized enterprises. The study establishes a connection between leadership approach, cross-functional integration, and inter-organisational collaboration, leading to three distinct innovation strategies: closed, semi-open, and open. The research also contributes to the literature on creative leadership by exploring inter-organisational collaboration as a valuable resource for creating value. By identifying the causal properties and contingent relations of entities, this study provides actionable insights for managers and policymakers seeking to foster innovation in established SMEs, thereby enhancing their competitiveness and sustainability.
- Advisor / supervisor
- Wagner, Beverly
- Liggat, John
- Resource Type
- DOI
Relations
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PDF of thesis T17463 | 2025-10-20 | Public | Download |