Strategies for implementing innovation in small and medium-sized enterprises
| DOI | https://doi.org/10.1108/WJEMSD-05-2019-0032 |
| Published date | 04 November 2019 |
| Pages | 12-29 |
| Date | 04 November 2019 |
| Author | Monther I. Haddad,Irene A. Williams,Mohamad Saleh Hammoud,Rocky J. Dwyer |
| Subject Matter | Strategy |
Strategies for implementing
innovation in small and
medium-sized enterprises
Monther I. Haddad, Irene A. Williams, Mohamad Saleh Hammoud and
Rocky J. Dwyer
College of Management and Technology,
Walden University, Minneapolis, Minnesota, USA
Abstract
Purpose –The purpose of this paper is to explore innovation strategies tha t managers of small and medium-size
enterprises (SMEs) used to implement innovation in their organizations to meet performance goals.
Design/methodology/approach –The participants in this multiple case study research comprised
randomly selected managers from SMEs operating in Dubai, United Arab Emirates with specialist expertise
in successfully implementing innovation in their organizations. Individual interviews were undertaken with
participants to gain both an insight and understanding regarding which innovation strategies are best suited
to improve performance goal outcomes. A further analysis of workplace internal documents, policies,
procedures, SMEs’websites, review websites and press releases afforded additional insights related to the
application of innovative workplace practices which supported productivity improvements in relation to
performance goal outcomes.
Findings –The findings of this study identified that the role of the top management in cultivating an
innovative culture, the identification of ideas as the starting point for innovation and the recognition of
customers as resources for the company.
Practical implications –Implementing the findings from this study may support job creation, economy
protection in downturns and contribution to economic growth, since thriving SMEs have a positive impact on
community development through the generation of the employment. Furthermore, the results of this study
can help in creating an increase in improving the productivity of Dubai SMEs in Dubai’s GDP, improvement
in investment opportunities; better working conditions for employees and possibilities for expanding the
operations of Dubai SMEs globally.
Originality/value –This study is of value because its findings may contributeto local and global economic
growth. Exploring successful innovation implementation strategies in SMEs can result in useful guidelines
that SME managers can use to reach the performance goals of their SMEs. Since governmental policies are
critical to improving business performance, the Government of Dubai may benefit from this study by
addressing key success factors for SMEs through policies and regulations. This study has particular value
given the lack of studies that address the issue of innovation implementation in SMEs, especially for SMEs in
emerging economies.
Keywords Resource-based view, Innovation, Small–medium enterprises, Strategy
Paper type Research paper
Introduction
Small and medium-size enterprises (SMEs) are the engine of economic development as they
are the largest employer in the world and a major contributor to a country’s gross domestic
product (Katua, 2014). Despite the availability of a wealth of studies about SME innovation
in developed countries, there is a lack of information about the innovation of SMEs in
developing countries (Xie et al., 2013). In one of the studies in Dubai, Al-Ansari et al. (2013)
identified that innovation had a positive impact on SME performance. However, the authors
did not study how SME managers used innovation to improve organizational performance,
or to increase its profitability.
Innovation has the potential to improve performance. However, the inefficient
implementation of innovation does not generate the expected results, especially in SMEs
(Norek, 2014; Xie et al., 2013). SMEs represent a significant part of local and global
World Journal of
Entrepreneurship, Management
and Sustainable Development
Vol. 16 No. 1, 2020
pp. 12-29
© Emerald PublishingLimited
2042-5961
DOI 10.1108/WJEMSD-05-2019-0032
Received 18 May 2019
Revised 20 July 2019
Accepted 11 August 2019
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2042-5961.htm
12
WJEMSD
16,1
economies by constituting around 90 percent ofthetotalactivefirmsworldwide(Shrirame
and Soni, 2015). Despite the role that SMEs play in the local and global economy, few
researchers addressed the issue of innovation implementation in SMEs especially in
developing countries (Arshad and Arshad, 2019; Xie et al., 2013). The lack of studies about
the implementation of innovation in SMEs operating in developing countries calls for
more research to address this gap. This study has particular significance because of
the lack of studies that address the issue of innovation implementation in SMEs, especially
for SMEs in emerging economies. The findings of this research may contribute to local
and global economic growth. Exploring successful innovation implementation strategies
in SMEs can result in useful guidelines that SME managers can use to reach the
performance goals of their companies. SME managers may use the study results to
improve the performance and increase the competitiveness of their firms through the
implementation of innovation.
Research purpose and research question
Although SMEs in Dubai constitute 95 percent of the enterprise population, only 13 percent
of SMEs implement innovation (Dubai SME, 2014). The lack of innovation strategies
impacts SME performance and prevents SME managers from reaching the performance
goals of their companies. The purpose of this qualitative multiple case study was to explore
strategies that successful SME managers use to implement innovation in their organizations
to meet performance goals. The target population was five managers from four SMEs in
Dubai, who have successfully implemented innovation in their organizations to meet
performance goals.
The overarching research question for this study was the following:
RQ1. What strategiesdo SMEs use for implementinginnovation to improve performance?
To answer this question, a qualitative multiple case study was used.
Research design and sampling
A qualitative methodology was the basis for this study to explore strategies that successful
SME managers used to implement innovation in their organizations to meet performance
goals. Because of the exploratory nature of this study and considering the lack of
information about innovation of SMEs in developing countries (Xie et al., 2013), qualitative
research was more suitable than quantitative or mixed research. A multiple case study was
the research design for this study. Yin (2018) suggested using a multiple case study design
when the researcher presents more than one case in the study in the absence of clear
boundaries between the phenomenon and the context. In addition, case study design is
suitable for collecting rich data using how and why questions about a current phenomenon
on which the researcher has no control (Yin, 2018).
Face-to-face semi-structured interviews were the approach for collecting the
primary data. Well-informed participants with the right knowledge can add critical data to
the study (Yin, 2018). Purposeful sampling was used to choose the participants. The specific
population consisted of managers from SMEs in Dubai who successfully implement
innovation in their organizations. Gibbins et al. (2014) suggested that interviews should
continuewith new participants until nonew information emerges. We reacheddata saturation
after interviewing five managers from four different SMEs.
A review of the professional and academic literature
In this literature review, the paper used a reflective approach to the various studies on
how innovation affects the performance of SMEs across the world and how SME
13
Strategies for
implementing
innovation
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