Assembling capabilities for innovation: Evidence from New Zealand SMEs

This article draws upon survey data from New Zealand small- and medium-sized enterprises (SMEs) to explore the relationship between training, collaboration and innovation performance. Based on the perspective that SME owner–managers attempt to marshal both internal and external capabilities to impro...

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Bibliographic Details
Published in:International small business journal 2016-02, Vol.34 (1), p.123-143
Main Authors: Whittaker, D Hugh, Fath, Benjamin P, Fiedler, Antje
Format: Article
Language:English
Subjects:
Collaboration
Innovation
Innovations
Management theory
New Zealand
Small & medium sized enterprises-SME
Strategic management
Studies
Training
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Summary:This article draws upon survey data from New Zealand small- and medium-sized enterprises (SMEs) to explore the relationship between training, collaboration and innovation performance. Based on the perspective that SME owner–managers attempt to marshal both internal and external capabilities to improve innovation outcomes, it shows that strategies which focus on internal capabilities (training) only have no tangible effect. SMEs benefit from different capability strategies depending on their age. For younger firms, accessing external resources (collaboration) has a positive effect, while older SMEs benefit from a combined strategy (collaboration and training). Training effects are context (e.g. industry or sector) dependent and contingent on a broader approach to innovation. Our findings also suggest that demographic characteristics of the owner–manager influence the capability assembling strategy and are therefore, an important contingency for the innovation performance of SMEs.
ISSN:0266-2426
1741-2870
DOI:10.1177/0266242614548931