No abstract

No abstract

Managing innovation in smaller firms imposes challenges of a specific nature. Such challenges include scarcity of resources for R&D and innovation activities, complexity of scientific fields, coordinating innovation activities with operational functions of the firm and availability of access to up-to-date scientific excellence. A question of importance should be raised as to how one can use the recent development in information and communication technologies (ICTs) to meet these challenges and to facilitate innovation activities in small and medium-sized enterprises (SMEs), especially high-technology smaller firms (HTSFs), as these use innovation as their major competitive edge. In this conceptual article we propose using a newly introduced management paradigm, namely, internetization management to achieve the said. In the article we discuss the different challenges of innovation in HTSFs and how these challenges can be met by adopting the internetization management paradigm. The article sheds light on the need for a coupling between management and innovation studies in relation to SMEs while taking into consideration the e-globalized nature of the modern economy. It addresses in a more particular way HTSFs’ need for that coupling.

Globalization and e-globalization are terminologies of high significance when focusing on smaller firm mechanisms of survival and growth. Studying the way firms are using bridging tactics, including strategic alliances, to increase their chance of survival and growth is an important issue. This is certainly true for the smaller enterprises. There are different tools in literature that are used to analyse the strategic partnership within the international context. One of the new approaches to understand the interaction between the firm's activity and its environment is the concept of the ‘Firm Impact Sphere’. In this article we have reviewed important existing knowledge about Information Technology's (IT) impact on the management and other functional aspects of Small and Medium-sized Enterprises (SMEs). We have re-introduced the concept of the ‘Firm Impact Sphere’ and have related that to the structure of strategic alliances, as an example of an effective bridging tactic used by firms to expand into global markets. The ‘Firm Impact Sphere’ concept was initially proposed by Abouzeedan and Busler (2002). According to this concept, there are three types of Firm Impact Spheres: Localized, Semi-globalized and Globalized. Firm performance has different distinct characteristics in each of these types. Using this differentiation, we have analysed the way the concept of ‘Firm Impact Sphere’ would be used in understanding bridging tactics between functionality, with a concentration on international strategic alliances structuring and building.

Purpose -The impact of the e-globalization combined with staggering costs for R&D across industries has resulted in the call for new approach to innovation where openness and interconnectivity is the role. This new approach is designated as "open innovation". The new paradigm calls for the sharing of knowledge and resources in conducting innovation activities within and among organizations. As such, one needs to re-orient the structure of the organization to meet these new requirements. On the conceptual level, it becomes a significant undertake to try to grasp how our traditional understanding of the organization can be fitted within the requirements of the open innovation when the environment of the e-globalization is taken in consideration. The purpose of this paper is to discuss the question of how organization structure theories can be coupled to the open innovation paradigm. Out of that analysis the authors propose a new theoretical framework of organizational analysis that takes both the classical knowledge and the new economic context of e-globalization. Design/methodology/approach -The contemporary period is recognized by the term "new economy", as a replacement for the "old economy". Another term of importance is "globalization", which is coupled to the issue of economy categorization. Humanity launched the modern age of globalization some decades ago, but we are going through a new type of globalization, e-globalization.In the e-globalization, processes are induced basically by the impact of the new tools of communication and information technologies. These dynamic processes have forced a re-thinking of the traditional innovation practices. In the paper, the authors reflect on the changes in relation to the traditional knowledge about organization structure, using a deductive approach and textual analysis and relate that to the requirements of an open innovation paradigm. In the process, the authors introduce the basics of the "theory of internetisation dynamics" as a new potential organizational theoretical framework. Findings -From the analysis, it was found that some traditional concepts about organization structure and organizing mechanism theories are responsive to the needs of the open paradigm settings while other theories are not. However, each of these is able to contribute to one of the five components of the theory of internetisation dynamics. Originality/value -The authors argue that by using the correct framework for the analysis of the organizational structure, one can propose a set of strategic steps which would help the companies to re-structure. That would save time and effort for policy-makers and managers of firms, as well as researchers active in this field of organization and organizing processes, who are focused on the open innovation transformation requirements of the firms. Running this analysis would add some input into organizational re-orientation in troubled sectors such as in pharmaceutical industries.