SMEs and the innovation management process: A multi-level process conceptual framework

Abstract

The aim of this paper is to propose a conceptual framework to manage the innovation process in small businesses. It is based on research from 11 case studies in the Montreal software industry using contingency and resource dependency theories. This conceptual framework provides a view of the innovation process that differs from the linear approach often used in many studies to investigate innovation in small and medium sized businesses (SMEs). The linear approach considers the process as a set of activities that includes developing from one stage to another, while depending on the previous one. We conceptualize the innovation process in small businesses as an interactive process that involves a set of six subprocesses and several keys points of resources mobilization, which requires interacting with both internal and external business actors. Successful mobilization of innovation resources at all key points determines the success or failure of SMEs' innovation processes.