Using capital theory to explore problem solving and innovation in small firms

Abstract

Purpose – The purpose of this paper is to investigate how small firms work at a micro-level, applying Bourdieu’s Capital Theory to give insight into the way individuals use the social and cultural capital at their disposal, to innovate and solve problems. Design/methodology/approach – The authors applied qualitative methods to explore problem solving and innovation activities at the micro-level in small firms, using interviews and thematic analysis. Findings – The findings reveal that, compared to firms with lower levels of social and cultural capital, firms which possess higher levels of social and cultural capital have a higher success rate in problem solving and are more likely to engage in innovative activity. Social and cultural capitals complement and reinforce one another in small firms, for example an enhanced ability to utilise networks (social capital) allows small firms to access a greater diversity of knowledge (cultural capital). Originality/value – Little is known about how different forms of capital are utilised in the day-to-day operations and problem solving of small firms: the application of Bourdieu’s Capital Theory offered an original frame in which to explore these activities.

An exploratory study into everyday problem solving in the design process of medical devices

“…Applying Bourdieu's theory of capital has allowed us to show how social and cultural capital might be used in a cyclical process to solve problems and in this process we identified different levels of capital (see Figures 1 and 2). Our work contributes to the literature calling for work to apply Bourdieu's theory to organisation studies (Emirbayer and Johnson 2008) and more specifically in exploring problem solving (Glover et al 2016). Bourdieu might be particularly useful in that his work allows for the exploration of practice, i.e.…”

“…Bourdieu defines resources as four forms of capital: economic; cultural; social; and symbolic (Bourdieu 1986). In this study we address calls for further research investigating the use of social and cultural capital in individual problem solving and innovation (Glover et al 2016).…”

“…We focus on addressing calls for investigating the individual (micro level analysis) (Crossan and Apaydin 2010;Glover et al 2016;Greenman 2013) and the problems they encounter (Daniels et al 2013) in the design process of medical devices; these problems can involve technical, social and financial issues.…”

“…By concentrating on the utilisation of different capitals for problem-solving and innovation, this study makes an important contribution to the literature on individual problem-solving and innovation in different working contexts. The work also addresses recent calls for the exploration of using capitals in everyday problem-solving and innovation (Glover et al 2016); and analysis at the individual level is becoming increasingly important in organisational research (Greenman 2013).…”

Creating better humans towards sustainable competitive advantage for small and medium-sized accounting firms in Malaysia

“…Stone, (2011) emphasised that accountants who adopt communication approaches with small managers must prove its needs of the economical significant in the small business sector. Colbert, (2002) acknowledged the communication as significant for internal and external auditors after the required implementation of corporate governance, together with both the International Standards of Auditing (ISAs) and the Practice Advisories (PAs).…”