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Fostering Innovative SMEs in a Developing Country: The ALI Program Experience

Author

Listed:
  • Bruno Francisco Diniz Marinho

    (Luiz de Queiroz College of Agriculture, University of São Paulo (USP), Piracicaba 13418-445, SP, Brazil)

  • Isotilia Costa Melo

    (Escuela de Ingeniería de Coquimbo (EIC), Universidad Católica del Norte (UCN), Coquimbo 1781421, Chile)

Abstract

Small and medium enterprises (SMEs) play an essential economic role through income and employment generation as well as reducing inequalities. In this regard, continuous innovation is a pillar for guaranteeing SMEs’ survival worldwide. In Brazil, the ALI Program (Portuguese acronym for Local Innovation Agent) trains groups of SMEs to implement a continuous innovation process based on agile methodologies. This paper applied focus group methodology to investigate whether, after participating in the program, SMEs practice some innovation processes in their business and the difficulties perceived by entrepreneurs in incorporating innovation processes into their ventures. Based on the extant literature and on the focus group, it was observed that SMEs see innovation as a risk, fear innovating because of tradition, family, and/or generational context, and do not see innovation as a process suitable to be systematized with agile tools. In addition, factors such as the age of the SMEs’ leaders, the age of the SMEs, the gender of the SMEs’ leaders, and the nature of the SMEs (family business or not) may affect their openness to innovation. Recommendations are stated for practitioners (such as ALIs) to improve their training quality, policymakers to improve and create similar programs, and researchers interested in future research directions.

Suggested Citation

  • Bruno Francisco Diniz Marinho & Isotilia Costa Melo, 2022. "Fostering Innovative SMEs in a Developing Country: The ALI Program Experience," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13344-:d:944614
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    1. Costa Melo, Isotilia & Alves Junior, Paulo Nocera & Callefi, Jéssica Syrio & da Silva, Karoline Arguelho & Nagano, Marcelo Seido & Rebelatto, Daisy Aparecida do Nascimento & Rentizelas, Athanasios, 2023. "Measuring the performance of retailers during the COVID-19 pandemic: Embedding optimal control theory principles in a dynamic data envelopment analysis approach," Operations Research Perspectives, Elsevier, vol. 10(C).
    2. Isotilia Costa Melo & Paulo Nocera Alves Junior & Geandra Alves Queiroz & Wilfredo Yushimito & Jordi Pereira, 2023. "Do We Consider Sustainability When We Measure Small and Medium Enterprises’ (SMEs’) Performance Passing through Digital Transformation?," Sustainability, MDPI, vol. 15(6), pages 1-30, March.
    3. Yashuo Xue & Mei Kong & Ruiying Chen & Qingmin Wang & Yangyang Shen & Jiakun Zhuang, 2023. "How Does Internet Use Promote Returned Migrant Workers’ Entrepreneurship: Evidence from Rural China," Sustainability, MDPI, vol. 15(13), pages 1-22, June.
    4. Geandra Alves Queiroz & Paulo Nocera Alves Junior & Isotilia Costa Melo, 2022. "Digitalization as an Enabler to SMEs Implementing Lean-Green? A Systematic Review through the Topic Modelling Approach," Sustainability, MDPI, vol. 14(21), pages 1-21, October.

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