An Investigation into Innovations in SMEs: Evidence from the West Midlands, UK

Abstract

This article focuses on innovation in small businesses. Specifically, the objectives of the paper are twofold: a) to explore the impact of individual features, business resources, organisational culture, structure and market dynamism on firm-level innovation; b) to develop insights into innovation in small and medium enterprises (SMEs). The research procedure follows Yin’s (1994) case method approach. Two Information and Communication Technology (ICT) companies, winners of various innovation awards in the West Midlands of the UK, participated in the case studies. Evidence from the studies shows that innovation intensity is dependent on the availability and sufficiency of financial and human resources. Furthermore, an organisational culture supporting new product development and an innovation-conducive structure/ mechanism influences the innovation outcomes. Evidence also reveals that firm level innovation will be influenced internally by senior executives’ experiences and externally by market dynamism.