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Innovation in Micro and Small Enterprises: Resources and Capabilities

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  • Renata Braga Berenguer de Vasconcelos
  • Joséte Florencio dos Santos
  • Jackeline Amantino de Andrade

Abstract

Objective: the article aims to identify the relevant resources for the composition of managerial and transactional capabilities in the context of micro and small enterprises (MSEs). Method: through a literature review, the resources associated with the innovation were identified: leadership, people management, information and knowledge, relationships with clients, suppliers, and society, and results. The resources were collected and measured using a structured questionnaire made available by the Local Agent for Innovation program, applied to 447 MSEs in the state of Pernambuco, between 2015 and 2017. Confirmatory factor analysis was used to verify how these resources contribute to the composition of capabilities. Results: the results demonstrate that the managerial capability is composed of the relationship with society and suppliers, leadership, the sharing of information and knowledge, and people management. Transactional capability is made up of the relationship with customers and the results obtained by the firm. Conclusions: although MSEs have restrictions on access to technologies, their organizational resources seem to contribute to the development of innovation capability and to obtain competitive advantage.

Suggested Citation

  • Renata Braga Berenguer de Vasconcelos & Joséte Florencio dos Santos & Jackeline Amantino de Andrade, 2021. "Innovation in Micro and Small Enterprises: Resources and Capabilities," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 25(2), pages 190106-1901.
    • Handle: RePEc:abg:anprac:v:25:y:2021:i:2:1429
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    References listed on IDEAS

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    2. Nascimento, Leandro da Silva & Zawislak, Paulo Antônio, 2023. "Towards a theory of Capability-Based Transactions: Bounded innovation capabilities, commercialization, cooperation, and complementarity," Technology in Society, Elsevier, vol. 75(C).

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