Categories of external factors influencing SMEs’ innovation capability
| Category | Description | Contribution to SME innovation capability | Key references |
|---|---|---|---|
| Financing and funding | Access to external financial resources, such as loans, venture capital, credit lines, grants and subsidies, to support innovation activities | External financing helps SMEs overcome internal resource constraints and allocate resources to R&D and innovation projects. This is particularly relevant for SMEs in the manufacturing sector, where technological innovation often requires higher levels of investment | Albis Salas et al., 2023; Edeh and Acedo, 2021 |
| Public support | Public policies, programs and institutional services that support SME innovation, including subsidies, innovation grants, technology transfer services and intermediary support | Public support reduces the costs, risks and uncertainty associated with innovation. Beyond financial support, public institutions can also facilitate access to technology, expertise and research organizations through technology transfer and advisory services | Albis Salas et al., 2023; Battistella et al., 2023; Hwang and Oh, 2023; Muskat et al., 2021 |
| Technology adoption | Acquisition and use of technologies that support communication, information exchange and value creation, including ICT, digital platforms, social media, big data, artificial intelligence, mobile technologies and the internet of things | The adoption of technology facilitates knowledge sharing with external stakeholders and enhances the agility and effectiveness of collaboration. Furthermore, it helps SMEs identify customer needs, improve communication, and transform business models, contributing to the development of IC | Alam, 2011; Borah et al., 2022; Fang, Huang, and Li, 2013; Macpherson et al., 2005; Ryu et al., 2021 |
| Collaboration with customers and suppliers | Vertical collaboration with customers and suppliers through feedback, joint initiatives, information sharing, supply chain integration and customer relationship management practices | Collaboration with customers and suppliers enables SMEs to better understand market needs, gain access to operational and market insights and increase the likelihood that their innovations will be accepted by the market. Supply chain integration also encourages joint participation in innovation-related activities | Albis Salas et al., 2023; Egbetokun et al., 2012; Izushi, 2005; Kühne and Gellynck, 2010; Song, 2023; Vu et al., 2022 |
| Collaboration with universities and R&D centers | Cooperation with universities, research centers and technology institutions through research projects, training programs, technology transfer, collaboration on patents and technical support | This type of collaboration enables SMEs to access specialized knowledge, technological expertise and research capabilities that they often lack internally. It also fosters organizational learning and accelerates the development of innovation capabilities at a lower cost than fully in-house R&D | Albis Salas et al., 2023; Kittilaksanawong and Ren, 2013; Kurdve et al., 2020; Song, 2023 |
| Collaboration with other organizations | Relationships with external stakeholders other than customers, suppliers, universities and R&D centers, including other companies, competitors, consultants, intermediaries, business networks and strategic alliances | Collaboration with other organizations enables SMEs to expand their knowledge and encourage joint initiatives that strengthen their capacity for innovation. It also helps reduce uncertainty and risk in innovation projects | Battistella et al., 2023; Forsman and Temel, 2016; Kamalrulzaman et al., 2021; Mazzucchelli et al., 2021; Saunila and Ukko, 2013; Wang et al., 2020 |
| Category | Description | Contribution to | Key references |
|---|---|---|---|
| Financing and funding | Access to external financial resources, such as loans, venture capital, credit lines, grants and subsidies, to support innovation activities | External financing helps SMEs overcome internal resource constraints and allocate resources to R&D and innovation projects. This is particularly relevant for SMEs in the manufacturing sector, where technological innovation often requires higher levels of investment | |
| Public support | Public policies, programs and institutional services that support | Public support reduces the costs, risks and uncertainty associated with innovation. Beyond financial support, public institutions can also facilitate access to technology, expertise and research organizations through technology transfer and advisory services | |
| Technology adoption | Acquisition and use of technologies that support communication, information exchange and value creation, including ICT, digital platforms, social media, big data, artificial intelligence, mobile technologies and the internet of things | The adoption of technology facilitates knowledge sharing with external stakeholders and enhances the agility and effectiveness of collaboration. Furthermore, it helps SMEs identify customer needs, improve communication, and transform business models, contributing to the development of | |
| Collaboration with customers and suppliers | Vertical collaboration with customers and suppliers through feedback, joint initiatives, information sharing, supply chain integration and customer relationship management practices | Collaboration with customers and suppliers enables SMEs to better understand market needs, gain access to operational and market insights and increase the likelihood that their innovations will be accepted by the market. Supply chain integration also encourages joint participation in innovation-related activities | |
| Collaboration with universities and R&D centers | Cooperation with universities, research centers and technology institutions through research projects, training programs, technology transfer, collaboration on patents and technical support | This type of collaboration enables SMEs to access specialized knowledge, technological expertise and research capabilities that they often lack internally. It also fosters organizational learning and accelerates the development of innovation capabilities at a lower cost than fully in-house R&D | |
| Collaboration with other organizations | Relationships with external stakeholders other than customers, suppliers, universities and R&D centers, including other companies, competitors, consultants, intermediaries, business networks and strategic alliances | Collaboration with other organizations enables SMEs to expand their knowledge and encourage joint initiatives that strengthen their capacity for innovation. It also helps reduce uncertainty and risk in innovation projects |
Sharing content requires targeting cookies to be enabled. Please update your cookie preferences to use this feature.