IDEAS home Printed from https://ideas.repec.org/a/eee/epplan/v80y2020ics0149718919302824.html
   My bibliography  Save this article

Evaluating innovation development among Brazilian micro and small businesses in view of management level: Insights from the local innovation agents program

Author

Listed:
  • Roth Cardoso, Hugo Henrique
  • Dantas Gonçalves, Adriana
  • Dambiski Gomes de Carvalho, Gustavo
  • Gomes de Carvalho, Hélio

Abstract

This research aims to analyze management and innovation patterns among micro and small businesses (MSBs) that participated during 2015–2016 in the Local Innovation Agents (LIA) Program from the Brazilian Micro and Small Business Support Service (SEBRAE). Complemented by factor analyses, two-step cluster analysis was applied on 6674 MSBs’ management dimensions to identify group patterns and statistical tests explored further cluster differences regarding management and innovation dimensions, besides innovation improvement throughout the program. Results were multifaceted. First, complementary factor analyses showed that management dimensions compose one factor with similar loadings, thus in accordance with their predictive importance found in the cluster analysis. Second, two main clusters were identified in terms of management level, which also presented significant differences regarding innovation levels. Third, considering a before-and-after self-comparison, by and large, innovation was significantly improved by both clusters. Fourth, the highest developed cluster presented higher improvement rates in most innovation dimensions, thus benefiting more from the program, except for two marketing-related innovations, which improved similarly by both clusters. Overall, even though the LIA Program was effective to leverage MSBs innovation, higher efficiency rates would be bounded to fewer participating MSBs, and hence policy planners should be aware of this tradeoff.

Suggested Citation

  • Roth Cardoso, Hugo Henrique & Dantas Gonçalves, Adriana & Dambiski Gomes de Carvalho, Gustavo & Gomes de Carvalho, Hélio, 2020. "Evaluating innovation development among Brazilian micro and small businesses in view of management level: Insights from the local innovation agents program," Evaluation and Program Planning, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:epplan:v:80:y:2020:i:c:s0149718919302824
    DOI: 10.1016/j.evalprogplan.2020.101797
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0149718919302824
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.evalprogplan.2020.101797?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pradhan, Rudra P. & Arvin, Mak B. & Bahmani, Sahar, 2018. "Are innovation and financial development causative factors in economic growth? Evidence from a panel granger causality test," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 130-142.
    2. Wipo, 2013. "Global Innovation Index 2013: Local Dynamics Key to Overcoming Global Innovation Divide," WIPO Economics & Statistics Series, World Intellectual Property Organization - Economics and Statistics Division, number 2013:gii, April.
    3. David McKenzie & Christopher Woodruff, 2017. "Business Practices in Small Firms in Developing Countries," Management Science, INFORMS, vol. 63(9), pages 2967-2981, September.
    4. Gustavo Dambiski Gomes De Carvalho & Eduardo Damião Da Silva & Hélio Gomes De Carvalho & Marcia Beatriz Cavalcante & June Alisson Westarb Cruz, 2017. "Brazilian SMEs' innovation strategies: agro-industry, construction and retail industries," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 14(3), pages 397-419.
    5. Crespi, Gustavo & Zuniga, Pluvia, 2012. "Innovation and Productivity: Evidence from Six Latin American Countries," World Development, Elsevier, vol. 40(2), pages 273-290.
    6. João Alberto De Negri & Alessandro Maffioli & César Rodríguez & Gonzalo Vázquez, 2011. "The Impact of Public Credit Programs on Brazilian Firms," IDB Publications (Working Papers) 61998, Inter-American Development Bank.
    7. Busom, Isabel & Vélez-Ospina, Jorge Andrés, 2017. "Innovation, Public Support, and Productivity in Colombia. A Cross-industry Comparison," World Development, Elsevier, vol. 99(C), pages 75-94.
    8. Sohn, S.Y. & Gyu Joo, Yong & Kyu Han, Hong, 2007. "Structural equation model for the evaluation of national funding on R&D project of SMEs in consideration with MBNQA criteria," Evaluation and Program Planning, Elsevier, vol. 30(1), pages 10-20, February.
    9. Brendan Galbraith & Rodney McAdam & Judith Woods & Theresa McGowan, 2017. "Putting policy into practice: an exploratory study of SME innovation support in a peripheral UK region," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 29(7-8), pages 668-691, August.
    10. Wipo, 2017. "Global Innovation Index 2017," WIPO Economics & Statistics Series, World Intellectual Property Organization - Economics and Statistics Division, number 2017:gii, April.
    11. Lars Ivar Oppedal Berge & Kjetil Bjorvatn & Bertil Tungodden, 2015. "Human and Financial Capital for Microenterprise Development: Evidence from a Field and Lab Experiment," Management Science, INFORMS, vol. 61(4), pages 707-722, April.
    12. James Foreman-Peck, 2013. "Effectiveness and efficiency of SME innovation policy," Small Business Economics, Springer, vol. 41(1), pages 55-70, June.
    13. Alfonso Expósito & Juan A. Sanchis-Llopis, 2018. "Innovation and business performance for Spanish SMEs: new evidence from a multi-dimensional approach," Working Papers 1805, Department of Applied Economics II, Universidad de Valencia.
    14. Haskel, Jonathan & Wallis, Gavin, 2013. "Public support for innovation, intangible investment and productivity growth in the UK market sector," Economics Letters, Elsevier, vol. 119(2), pages 195-198.
    15. Szczygielski, Krzysztof & Grabowski, Wojciech & Pamukcu, Mehmet Teoman & Tandogan, Vedat Sinan, 2017. "Does government support for private innovation matter? Firm-level evidence from two catching-up countries," Research Policy, Elsevier, vol. 46(1), pages 219-237.
    16. Kersten, Renate & Harms, Job & Liket, Kellie & Maas, Karen, 2017. "Small Firms, large Impact? A systematic review of the SME Finance Literature," World Development, Elsevier, vol. 97(C), pages 330-348.
    17. João Alberto De Negri & Alessandro Maffioli & Cesar M. Rodriguez & Gonzalo Vázquez, 2011. "The Impact of Public Credit Programs on Brazilian Firms," SPD Working Papers 1103, Inter-American Development Bank, Office of Strategic Planning and Development Effectiveness (SPD).
    18. Dragana Radicic & Geoffrey Pugh & Hugo Hollanders & René Wintjes & Jon Fairburn, 2016. "The impact of innovation support programs on small and medium enterprises innovation in traditional manufacturing industries: An evaluation for seven European Union regions," Environment and Planning C, , vol. 34(8), pages 1425-1452, December.
    19. Lazzarini, Sergio G. & Musacchio, Aldo & Bandeira-de-Mello, Rodrigo & Marcon, Rosilene, 2015. "What Do State-Owned Development Banks Do? Evidence from BNDES, 2002–09," World Development, Elsevier, vol. 66(C), pages 237-253.
    20. Acosta, Manuel & Coronado, Daniel & Romero, Carlos, 2015. "Linking public support, R&D, innovation and productivity: New evidence from the Spanish food industry," Food Policy, Elsevier, vol. 57(C), pages 50-61.
    21. Mano, Yukichi & Iddrisu, Alhassan & Yoshino, Yutaka & Sonobe, Tetsushi, 2012. "How Can Micro and Small Enterprises in Sub-Saharan Africa Become More Productive? The Impacts of Experimental Basic Managerial Training," World Development, Elsevier, vol. 40(3), pages 458-468.
    22. Juan L. Martinez-Covarrubias & Helena Lenihan & Mark Hart, 2017. "Public support for business innovation in Mexico: a cross-sectional analysis," Regional Studies, Taylor & Francis Journals, vol. 51(12), pages 1786-1800, December.
    23. Flavio Calvino & Maria Enrica Virgillito, 2018. "The Innovation†Employment Nexus: A Critical Survey Of Theory And Empirics," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 83-117, February.
    24. Kim, Eungdo & Kim, Soyoung & Kim, Hongbum, 2017. "Development of an evaluation framework for publicly funded R&D projects: The case of Korea's Next Generation Network," Evaluation and Program Planning, Elsevier, vol. 63(C), pages 18-28.
    25. Falk, Rahel, 2007. "Measuring the effects of public support schemes on firms' innovation activities: Survey evidence from Austria," Research Policy, Elsevier, vol. 36(5), pages 665-679, June.
    26. Marcelo Cano-Kollmann & Robert D. HamiltonIII & Ram Mudambi, 2017. "Public support for innovation and the openness of firms’ innovation activities," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(3), pages 421-442.
    27. Isabel Busom & Jorge-Andrés Vélez-Ospina, 2017. "Innovation, public support and productivity in colombia," Working Papers wpdea1701, Department of Applied Economics at Universitat Autonoma of Barcelona.
    28. Doh, Soogwan & Kim, Byungkyu, 2014. "Government support for SME innovations in the regional industries: The case of government financial support program in South Korea," Research Policy, Elsevier, vol. 43(9), pages 1557-1569.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sergio A. Contreras & Andrew J. Greenlee, 2021. "Evaluating the effectiveness of ChileCompra's Entrepreneurship Centers policy," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(4), pages 1262-1282, August.
    2. Sovianur Kure & Muhammad Basir-Cyio & Bakri Hasanuddin, 2021. "The Effect of Organizational Commitment, Competence, and Information Technology on the Performance of Regional Apparatus Organizations (OPD) of the Tojo Una-Una Regency Government and Their Impact on ," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(10), pages 408-420, October.
    3. Marcon, Arthur & Ribeiro, Jose Luis Duarte, 2021. "How do startups manage external resources in innovation ecosystems? A resource perspective of startups’ lifecycle," Technological Forecasting and Social Change, Elsevier, vol. 171(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jugend, Daniel & Fiorini, Paula De Camargo & Armellini, Fabiano & Ferrari, Aline Gabriela, 2020. "Public support for innovation: A systematic review of the literature and implications for open innovation," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
    2. Edeh, Jude N. & Acedo, Francisco J., 2021. "External supports, innovation efforts and productivity: Estimation of a CDM model for small firms in developing countries," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    3. Seenaiah Kale & Badri Narayan Rath, 2018. "Does Innovation Enhance Productivity In Case Of Selected Indian Manufacturing Firms?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(05), pages 1225-1250, November.
    4. Stojčić, Nebojša & Srhoj, Stjepan & Coad, Alex, 2020. "Innovation procurement as capability-building: Evaluating innovation policies in eight Central and Eastern European countries," European Economic Review, Elsevier, vol. 121(C).
    5. Tyce, Matthew, 2020. "Beyond the neoliberal-statist divide on the drivers of innovation: A political settlements reading of Kenya’s M-Pesa success story," World Development, Elsevier, vol. 125(C).
    6. Alejandro Martín Danon & Rafael Tessone & Guido Zack, 2021. "Banca de Desarrollo en tiempos de pandemia. Evaluación de impacto de créditos de capital de trabajo," Asociación Argentina de Economía Política: Working Papers 4459, Asociación Argentina de Economía Política.
    7. Monica de Bolle, 2015. "Do Public Development Banks Hurt Growth? Evidence from Brazil," Policy Briefs PB15-16, Peterson Institute for International Economics.
    8. Marco Túlio Dinali Viglioni & Mozar José Brito & Cristina Lelis Leal Calegario, 2020. "Innovation and R&D in Latin America and the Caribbean countries: a systematic literature review," Scientometrics, Springer;Akadémiai Kiadó, vol. 125(3), pages 2131-2167, December.
    9. Grover,Arti Goswami & Imbruno,Michele, 2020. "Using Experimental Evidence to Inform Firm Support Programs in Developing Countries," Policy Research Working Paper Series 9461, The World Bank.
    10. Zahler, Andrés & Goya, Daniel & Caamaño, Matías, 2022. "The primacy of demand and financial obstacles in hindering innovation," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    11. Kiman Kim & Sang Ok Choi & Sooyeon Lee, 2021. "The Effect of a Financial Support on Firm Innovation Collaboration and Output: Does Policy Work on the Diverse Nature of Firm Innovation?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 645-675, June.
    12. Stephen J. Anderson & Rajesh Chandy & Bilal Zia, 2018. "Pathways to Profits: The Impact of Marketing vs. Finance Skills on Business Performance," Management Science, INFORMS, vol. 64(12), pages 5559-5583, December.
    13. Ondřej Dvouletý & Ivana Blažková, 2019. "The Impact of Public Grants on Firm-Level Productivity: Findings from the Czech Food Industry," Sustainability, MDPI, vol. 11(2), pages 1-24, January.
    14. Lucia Dalla Pellegrina & Giorgio Di Maio & Paolo Landoni & Emanuele Rusinà, 2021. "Money management and entrepreneurial training in microfinance: impact on beneficiaries and institutions," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 1049-1085, October.
    15. Marco Bonomo & Ricardo Brito & Bruno Martins, 2014. "Macroeconomic and Financial Consequences of the After Crisis Government-Driven Credit Expansion in Brazil," Working Papers Series 378, Central Bank of Brazil, Research Department.
    16. Mayra Buvinic & Megan O’Donnell, 2017. "Gender Matters in Economic Empowerment Interventions: A Research Review," Working Papers id:11926, eSocialSciences.
    17. Nicholas Bloom & Renata Lemos & Raffaella Sadun & Daniela Scur & John Van Reenen, 2014. "The New Empirical Economics of Management," NBER Working Papers 20102, National Bureau of Economic Research, Inc.
    18. Otsuka, Keijiro & Sonobe, Tetsushi, 2012. "The Role of Training in Fostering Cluster-Based Micro and Small Enterprises Development," WIDER Working Paper Series 099, World Institute for Development Economic Research (UNU-WIDER).
    19. Karlan, Dean S. & Knight, Ryan & Udry, Christopher R., 2012. "Hoping to Win, Expected to Lose: Theory and Lessons on Micro Enterprise Development," Center Discussion Papers 133405, Yale University, Economic Growth Center.
    20. Mukhamad Najib & Abdul Aziz Abdul Rahman & Farah Fahma, 2021. "Business Survival of Small and Medium-Sized Restaurants through a Crisis: The Role of Government Support and Innovation," Sustainability, MDPI, vol. 13(19), pages 1-16, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:epplan:v:80:y:2020:i:c:s0149718919302824. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/evalprogplan .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.