SME innovation and learning: the role of networks and crisis events

Abstract

<b>Purpose:</b> <p>To contribute to the literature on innovation and entrepreneurial learning by exploring how SMEs learn and innovate, how they use of both formal and informal learning and in particular the role of networks and crisis events within their learning experience.</p> <b>Design/methodology/approach:</b> <p>Mixed method study, comprising 13 focus groups, over 1000 questionnaire responses from SME mangers, 13 focus groups and 20 case studies derived from semi-structured interviews. Findings: SMEs have a strong commitment to learning, and a shared vision. Much of this learning is informal through network events, mentoring or coaching. SMEs that are innovative are significantly more committed to learning than those which are less innovative, seeing employee learning as an investment. Innovative SMEs are more likely to have a shared vision, be open-minded and to learn from crises, being able to reflect on their experiences.</p> <b>Implications for research:</b> <p>There is a need for further process driven qualitative research to understand the interrelationship between, particularly informal, learning, crisis events and SME innovation. Implications for practice: SME owners need opportunities and time for reflection as a means of stimulating personal learning – particularly the opportunity to learn from crisis events. Access to mentors (often outside the business) can be important here, as are informal networks.</p> <b>Originality/value:</b> <p>This is one of the first mixed method large scale studies to explore the relationship between SME innovation and learning, highlighting the importance of informal learning to innovation and the need for SME leaders to foster this learning as part of a shared organisational vision.</p

Conditions for Employee Learning and Innovation – Interweaving Competence Development Activities Provided by a Workplace Development Programme with Everyday Work Activities in SMEs

“…In rich learning environments, workplace learning and innovation go hand in hand (Billett 2012;Evans 2015;Høyrup 2012;Price et al 2012;Saunders et al 2013). Workers' resources, such as their ideas, creativity, competence and problem-solving abilities, can drive innovations when innovative activities are embedded in employees' everyday work practices (Billett 2012;Ellström 2010a;Evans 2012;Fogelberg Eriksson 2014Price et al 2012).…”

How does self‐direction within learning operate to affect idea generation in small‐medium enterprise contexts?

“…CDL, as a concept, better reflects the finding that multiple stakeholders have a presence in the learning process. It is, therefore, an important contribution to the literature discussing HRD in smaller organizational contexts (Nolan & Garavan, ), as well as the literature that links learning to creativity and innovation in SME settings (for example, Le, ; McLean, ; Saunders et al, ). Engaging in CDL may be construed as a response to the resource pressures facing SMEs (Hessels & Parker, ; Woschke et al, ), and a product of the strong internal focus in smaller firms (Kidwell et al, ; Rosenbusch & Cseh, ).…”

“…Drawing on the literature connected with organizational learning (Pedler et al, ; Senge, ), it is theorized that codirected approaches to learning enhance idea generation because they enable employees to engage with independent knowledge search and construction. Such opportunistic learning (Saunders et al, ) positively contributes to the divergence (Penaluna et al, ) that idea generation depends upon, and thus supports the broader creative process.…”

“…While recognizing that HRD differs from HRM (Werner, ), HRD in SME contexts is nevertheless also characterized as informal and ad hoc (Gray, ; Tam & Gray, ). It is typically seen as unplanned and reactive (Saunders et al, ), targeted at the resolution of immediate problems (Hoque & Bacon, ), rather than long term development. While somewhat dated as a source, Stewart and Beaver () provide a useful overview of prior research into HRD within small organizations, arguing that we must not assume that models and frameworks of HRD developed in larger organizations can be transposed into their smaller counterparts.…”

“…Studies link a variety of factors to an organization's capacity to create, and this body of work extends into the human resource management (HRM) field (Binyamin & Carmeli, ; De Saá‐Pérez & Díaz‐Díaz, ; Gupta & Singhal, ; Jimenéz‐Jimenéz & Sanz‐Valle, ; Shipton et al, ). Within this territory, scholars have begun to investigate human resource development (HRD) practices, arguing for linkages between learning activity and success within the creative process (Saunders, Gray, & Goregaokar, ). Further examples of such studies variously explore learning at both an individual and organizational level (see, for example, Cirella, Canterino, Guerci, & Shani, ; Huber, ; Kim & Wilemon, ; McLean, ; Saunders et al, ; Waight, ), with Hirst, Van Knippenberg, and Zhou () and De Clercq, Rahman, and Belausteguigoitia () both linking learning orientations to improved creative outcomes.…”