- P-ISSN2287-1608
- E-ISSN2287-1616
- KCI
ISSN : 2287-1608
Technological Innovation Induced Growth of Engineering Industry SMEs: Case Studies in Bangalore
M.H. Bala Subrahmanya (Indian Institute of Science)
M Mathirajan
Abstract
This paper, based on two engineering industry SME case studies, traces the origin and process of technological innovations enabling the development and introduction of new products leading to market expansion and enterprise growth. The study throws light on how entrepreneurs played a decisive role in recognizing market opportunities, building up crucial in-house technological capability, supplementing it with appropriate external assistance, to carry out technological innovations. A constant interaction with its customers is in-built into the system. As a result, the SMEs could achieve successful product innovations leading to their gradual growth, over time. Finally, based on the observations and inferences derived out of the two cases, a theoretical construct of the growth of innovation in SMEs is postulated. This is done linking the three stages of their development: (i) start-up and stabilizing, (ii) building up technological capability and implementing innovations; and (iii) opening up of new markets resulting in firm growth.
- keywords
- Technological innovation, growth, engineering industry, SMEs, Bangalore
Reference
Bala Subrahmanya, M.H. (2015) Innovation and growth of SMEs in Bangalore: why do only some innovate and only some grow faster? Journal of Engineering and Technology Management, 36, 24-40.
Bala Subrahmanya, M.H. (2013) External support, innovation and economic performance: what firm level factors matter for high-tech SMEs? how? International Journal of Innovation Management, 17, 1-26.
Bala Subrahmanya, M.H. (2005) Technological innovations in Indian engineering industry: industry and firm level case studies, International Journal of Entrepreneurship and Innovation Management, 5, 401-420.
Bala Subrahmanya, M.H., Hussain, Z. and Chand, A. (2014) External technology acquisition of SMEs in the machinery industry of Bangalore, Asian Journal of Innovation and Policy, 3, 50-71.
Bala Subrahmanya, M.H. and Sudhir Kumar, R. (2011) Technological innovations and energy intensity of machine tool SMEs in Bangalore: do process innovations contribute to energy efficiency? International Journal of Energy Technology and Policy, 7, 519-536.
Bala Subrahmanya, M.H., Mathirajan, M. and Krishnaswamy, K.N. (2010) Importance of Tchnological Innovation for SME Growth-evidence from India, published as UNU-WIDER (United Nations University-World Institute of Development Economics Research) Working Paper No.2010/03.
Bala Subrahmanya, M.H., Mathirajan, M. and Krishnaswamy, K.N. (2008) The Influence of Technological Innovations on the Growth of Manufacturing SMEs, New Delhi: Department of Science and Technology, Government of India.
Bala Subrahmanya, M.H., Mathirajan, M., Balachandra, P., Srinivasan, M.N. and Laxman, P. (2002) R&D and Technological Innovations in Small Scale Industries, New Delhi: Allied Publishers Private Limited.
Becheikh, N., Landry, R. and Amara, N. (2006) Lessons from innovation empirical studies in the manufacturing sector: a systematic review of the literature from 1993-2003, Technovation, 26(5/6), 644-664.
Bianchini, S., Pellegrino, G. and Tamagni, F. (2015) Innovation strategies and firm growth: new longitudinal evidence from Spanish firms, DRUID 15 International Conference, Rome, Italy, June 15-17, 2015.
Bruque, S. and Mayano, J. (2007) Organizational determinants of information technology adoption and implementation in SMEs: the case study of family and cooperative firms, Technovation, 27, 241-253.
Burgelman, R.A. (1994) Fading memories: a process theory of strategic business exit in dynamic environments, Administrative Science Quarterly, 39, 24-56.
Ciemleja, G. and Lace, N. (2008) The factors determining innovation based attitude of Latvian SMEs towards sustainability, 5th International Scientific Conference on Business and Management 2008, Vilnius, Lithuania, 16-17 May.
Coad and Rao (2008) Innovation and firm growth in high-tech sectors: a quantile regression approach, Research Policy, 37, 633-648.
DST (2010) Directory of R&D Institutions 2010, Department of Science & Technology, Government of India.
Eisenhardt, K.M. (1989) Building theories from case study research, Academy of Management Review, 14, 532-550.
Engel, D., Rothgang, M. and Trettin, L. (2004) Innovation and their impact on growth of SME - empirical evidence from craft dominated industries in Germany, EARIE 2004 Conference in Germany.
Government of India (2010) Report of the Prime Minister’s Task Force on Micro, New Delhi: Small and Medium Enterprises.
Griffiths, W. and Webster, E. (2010) What governs firm-level R&D? internal or external factors? Technovation, 30, 471-81.
Hoffman, K., Parejo, M., Bessant, J. and Perren, L. (1998) Small firms, R&D, technology and innovation in the UK: a literature review, Technovation, 18, 39-55.
Hurmelinna-Laukkanen, P., Sainio, L.M. and Jauhiainen, T. (2008) Appropriability regime for radical and incremental innovations, R&D Management, 38, 278-289.
Jain, V. and Kiran, R. (2012) Technology management strategies and small and medium enterprises of Punjab manufacturing: a sse-based sector analysis, Journal of Intellectual Property Rights, 17, 67-72.
Kaminski, P.C., De Oliveira, A.C. and Lopes, T.M. (2008) Knowledge transfer in product development processes: a case study in small and medium enterprises of the metal-mechanic sector from Sao Paulo, Brazil, Technovation, 29, 589-606.
KASSIA (2015) Bangalore: Karnataka Small Scale Industries Association. http://www.onlinebangalore.com/indu/kasia.html
Krishnaswamy, K.N., Mathirajan, M. and Bala Subrahmanya, M.H. (2014) Technological innovations and its influence on the growth of auto component SMEs of Bangalore: a case study approach, Technology in Society, 38, 18-31.
Krishnaswamy, K.N., Sivakumar, A.I. and Mathirajan, M. (2006) Management Research Methodology: Integration of Principles, Methods and Techniques, New Delhi: Pearson Education India Private Limited.
Lagace, D. and Bourgault, M. (2003) Linking manufacturing improvement programs to the competitive priorities of Canadian SMEs, Technovation, 23, 705-715.
Lin, C.Y.Y. and Chen, M.Y.C. (2007) Does innovation lead to performance? an empirical study of SMEs in Taiwan, Management Research News, 30(2), 115-132.
Lumiste, R., R. Lumiste, M. and Kilvits, K. (2004) Estonian manufacturing SMEs innovation strategies and development of innovation networks, 13th Nordic Conference on Small Business Research.
Ministry of MSMEs (2015) Annual Report 2014/15, New Delhi: Government of India.
Oke, A., Burke, G. and Myers, A. (2007) Innovation types and performance in growing UK SMEs, International Journal of Operations & Production Management, 27(7), 735-753.
O’Regan, N., Ghobadian, A. and Sims, M. (2006) Fast tracking innovation in manufacturing SMEs, Technovation, 26, 251-261.
Pitt, L., Van der Merwe, R., Berthon, P., Salehi-Sangari, E. and Barnes, B.R. (2006) Swedish biotech SMEs: the veiled values in online networks, Technovation, 26, 553-60.
Radas, S. and Bozic, L. (2009) The antecedents of SME innovativeness in an emerging transition economy, Technovation, 29, 438-50.
Raymond, L. and St-Pierre, J. (2010) R&D as a determinant of innovation in manufacturing SMEs: an attempt at empirical clarification, Technovation, 30, 48-56.
Rhee, J., Park, T. and Lee, D.H. (2010) Drivers of innovativeness and performance for innovative SMEs in South Korea: mediation of learning orientation, Technovation, 30, 65-75.
Rogers, E.M., Takegami, S. and Yin, J. (2001) Lessons learned about technology transfer, Technovation, 21, 253-261.
Siggelkow, N. (2007) Persuasion with case studies, Academy of Management Journal, 50(1), 20-24.
UNDP (2001) Human Development Report 2001, New York: Oxford University Press.
Utterback, J.M. (1996) Mastering the Dynamics of Innovation, Boston, Massachusetts: Harvard Business School Press.
Varis, M. and Littunen, H. (2010) Types of innovation, sources of innovation and performance in entrepreneurial SMEs, European Journal of Innovation Management, 13(2), 128-154.
Zeng, S.X., Xie, X.M. and Tam, C.M. (2010) Relationship between cooperation networks and innovation performance of SMEs, Technovation, 30, 181-194.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations