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Managerial capability for innovation for microfirms: integrating theory with empirical evidence


Cite

Model of microfirm managerial capability for innovation. Source: Kearney et al. (2014)
Model of microfirm managerial capability for innovation. Source: Kearney et al. (2014)

Refined model of microfirm managerial capability for innovation
Refined model of microfirm managerial capability for innovation

Motivation of microfirm owner/managers

MotivationNature of owner/manager motivationLiterary source
Business philosophyThe firm driven by business philosophy - the application of business and tools to problems and a motivation based on profitability; trade off between profitability and life style; changing motivation over life cycle of businessBeaver (2007); Nybakk and Hansen (2008); Phillipson et al. (2004)
Entrepreneurial and lifestyle interactionDynamic entrepreneurs based on lifestyle motivation where business concerns may be secondary; niche marketing/business motivation and lifestyle motivation not always in conflict - they may convergeAteljevic (2007); Marchant and Mottiar (2011); Vaugeois and Rollins (2007); Vernon et al. (2003)
Multiple business rolesLifestyle motivation supports the owner/manager in multiple business roles sustaining seasonalityBaum and Szivas (2008); Carlsen et al. (2008); Goulding et al. (2008)

Pilot study emerging findings

ThemeNature of emerging theme
Innovation in the microfirm contextLimited awareness by owner/managers Owner/manager dominant role Incremental innovation and potential for development
The role of the external environment - articulation of changeEnvironmental determinism Marketing technology Owner/manager direct market sensing
Mental models and imaginative strategyEmergence from business community Surfacing of mental models New markets
People relationships and customer serviceOwner/manager shares local expertise Owner/manager shares hobby Owner/manager symbolic representation of firm
Operational capabilityOpportunities through craft capability and market sensing via market proximity Challenges of over immersion in operational work to neglect of strategy
Nature of micro firm leadershipCulture shaping limited evidence/possibly tacit in nature Paternalism utilising employees as resource Delegation - limits and opportunities Resilience
Resource poolsFamily as potential resource yet barrier to innovation Gap between policy makers and owner/managers Resource limits and limited managerial capability to leverage resources Stakeholder ties and opportunities and limits