COMPONENTS OF INNOVATIVENESS IN THE SOFTWARE INDUSTRY: AN EXPLORATORY STUDY OF ENTREPRENEURIAL FIRMS IN RIO GRANDE DO SUL

Abstract

This paper is about "innovativeness" in the context of entrepreneurial orientation defined as a firm's trend to innovate. We use the literature on organizational practice to identify and systematize the variables that make up innovativeness in entrepreneurial software firms. Our literature review takes a new look at the concepts of entrepreneurial orientation and innovativeness and presents the conceptual foundation for the study. The empirical portion of the study is a qualitative and exploratory, using in depth interviews with managers of 13 entrepreneurial software firms in Rio Grande do Sul, Brazil. The results of this study demonstrate the importance of innovativeness in the context studied and illustrate how it reverberates in organizations in terms of products and services, processes, financial resources, personnel, creativity and differentiation. It also describes managerial practices that support innovativeness. The study concludes by suggesting a set of five new elements that constitute innovativeness: Global products, New business models, Financial resources for innovation obtained from external sources, Partnerships developed for innovative activities, and practices established for the development of creativity. [PUBLICATION ABSTRACT]