The Impact of Innovation Management on

Small Companies in the UK

Student Name:

Student ID:

University Name: theUniversity of The West of Scotland

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 Table of Contents
Chapter 3: Research Methodology.............................................................................................3

3.1 Introduction......................................................................................................................3

3.2 Research onion framework..............................................................................................3

3.3 Research outline...............................................................................................................4

3.4 Research philosophy........................................................................................................4

3.5 Research approach...........................................................................................................5

3.6 Research design................................................................................................................6

3.7 Research method..............................................................................................................7

3.8 Data collection method....................................................................................................9

3.9 Data analysis technique..................................................................................................10

3.10 Sampling method and sample sizes..............................................................................10

3.11 Validity and reliability.................................................................................................10

3.12 Ethical Consideration...................................................................................................11

3.13 Limitations of the research...........................................................................................11

3.14 Summary......................................................................................................................11

Reference list............................................................................................................................12

Appendix: Semi-structured interview questions......................................................................16

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Chapter 1: Introduction
Management of innovation is a type of looking into the future, being imaginative, and being
creative.In addition to product development, it is also utilized to foster organization-wide
innovation. Higher management and engineers can communicate using technologies that help
them comprehend goals and processes. Principally, its purpose is to provide quick reactions
within a business, leveraging its resources to develop new goods and ideas. As well, it
involves people in the growth of the company's manufacturing and marketing efforts. The
innovation process can be carried out both during and after the development phase. In
innovation management, there are two types of processes: one is pulled, and the other is
pushed. Using technology to discover profitable applications is called a pushed process. The
pulled process is one in which the efforts to find solutions are the primary focus. Innovation
management consists of two parts. The second phase covers the execution of the innovation.
The innovation can be measured via internal benchmarking. Complexity information must be
deduced by managers.

Researchers and organizations are increasingly relying on innovation management to be

competitive in a world where economic conditions, market dynamics, and emerging
technology are fast-changing (Drejer, 2002). Schilling (2005) contends that many new ideas
fail to commercialize because of erroneous attempts made during the process and that
understanding the process from beginning to end could help develop more innovative
solutions. To begin, I'll define a product, process, and service innovation along with their
relationships in this study. As a follow-up, I will examine the sources of innovation in order
to better understand where ideas come from and how they relate to the product, process, and
service innovation. When I reach the sources of innovation, I will evaluate the relationship
between innovation and knowledge sharing. As I continue to illustrate the Stage-Gate model,
I will explore the types of teams that are commonly employed in innovation processes. This
concept will be discussed in-depth in order to determine its level of innovation because I
believe the commercialization of creative ideas has the ability to enhance our daily lives and
the environment in which we live.

1.2 Analyzing the effectiveness of innovation management

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Innovation in product, process, and service

There are specific definitions for a product, process, and service innovations that set them
apart from one another. This can be perceived as incremental upgrades, new features added to
existing product families, and future or innovative items (O'Sullivan and Dooley, 2009).
Incorporating innovation into essential business processes has a substantial impact on cost
and time savings, as well as quality and flexibility (Davenport, 1993). New services are
adopted by new or current clients, whereas the provision of existing services to a new client
constitutes service innovation (Damanpour, Walker, and Avellaneda, 2009). Yet, despite their
differences, they are related. Product and process innovation, as well as service innovation,
will be compared to provide light on these relationships.

Product and process innovation could benefit from each other in the beginning. Process
innovation can have a positive impact on product innovation by reducing errors and
improving quality, and vice versa (Schilling, 2005). When a medical company's R&D
department discovers a novel approach for treating hair loss, a new product is made using that
method. Meaning that new breakthroughs in process innovation can both speed up the
process as well as significantly improve the final product's level of innovation. According to
Schilling (2005), product and process innovation can be seen differently by different
consumer segments, as illustrated by UPS's more effective distribution system. 1.2 Statement
of the Problem

Due to a lack of knowledge, supply chain professionals have a tough time implementing
green practices into their work. According to Mafini & Muposhi (2017), organizations'
supply chain management departments often encounter challenges due to a lack of skill set
and technological capabilities. Green and sustainable practices are hampered, and the process'
quality and productivity are lowered. Resources and infrastructures are needed to implement
the process properly. A lot of time and money is required to set up a successful event.
Organizational management is often faced with major resistance from employees who want
to alter overall working processes and infrastructure. In many nations, as Rehman Khan et al.
(2018) explains, government rules and regulations are constantly changing, making it

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impossible to apply the process. Unfortunately, a lack of quality and productivity are often
hampered by bad execution. The organization's market positioning, consumer experience, and
employee happiness are further hampered by the inadequate implementation of GSCM
processes. The organization's performance on the market is often hampered by difficulties
and challenges.

At first, a company's involvement in a foreign market is limited to independent

representatives, and then it expands to a sales subsidiary, and finally to manufacturing."

In the past forty years, internationalization has become a major research area for business
scholars. The internationalization of small and medium-sized firms (SMEs) has been the
subject of much research (Dunning, 1973; Markusen, 1995; Kogut and Zander, 2003). (Oviatt
and McDougall, 1994).

While small and medium-sized businesses (SMEs) have been viewed as important to a
country's economic development (Mazzarol, Volery, Doss, and Thein, 1999), in the
Netherlands, for example, SMEs account for 98.8% of all private-sector enterprises,
contribute 31.6% to the GDP and employ 55% of the overall workforce (EIM Business &
Policy Research, 1999). Many small and medium-sized firms (SMEs) and their governments
want to expand their sales outside of their home markets (Economic Development Board,
1993). 1.3 Aims and objectives of the research

Innovation has been questioned throughout history. This dilemma has existed since the days
of classical economics, and it continues to exist today. Necessary authors have also
emphasized the importance of innovation in the socio-economic realm, which is why it is
important to examine it. An increasingly worldwide and global market requires organizations
to have a competitive edge through innovation. A company's ability to become what it wants
to depend on the amount of money it invests in expertise, structure, and research, as well as a
solid plan. About innovation, there are several definitions, as well as a number of theoretical
contributions.

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Change or alter something by introducing new features is what the Latin word innovate
means (Medina Salgado Espindola and Espinosa 1994).

Assimilation and successful exploitation of novelty in the economic and social environment
are considered to be innovations.

INFLUENCE TYPES

Innovators can choose from three main categories.

Innovation in Products

New technology products (whose technological properties change significantly from prior
items) or significantly upgraded technology products are introduced to the market under this
heading (previously existing whose performance has been improved or greatly improved)

Innovative manufacturing processes are those that have been developed from scratch.
Production or delivery of technologically innovative or enhanced items that cannot be
manufactured or supplied using conventional techniques is possible with the application of
this technology, which could also improve overall production efficiency.

Innovating within the organization

Eradication of outdated management practices in an establishment. New organizational

frameworks have been incorporated into the organization and management process.

INFRASTRUCTURE FOR INNOVATION

Many invention models exist, but only four of them are common and relevant.

Linear Model

Innovation can be interpreted in numerous ways, including through the use of the linear
model of innovation. An innovation process can be theorized using this paradigm. For a

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process that is not solely dependent on science, technology, or the market to generate
breakthroughs, the sequence is too inflexible. As of now, the rigorous distinction between
invention, innovation, and marketing is not correct. Using the linear model, which was
developed as a first-generation model, to begin the innovation process only takes into account
the thrust of science/technology or market pull (concepts 50-60-70 years out).

Open Model

Models that are open to interpretation Innovating from beyond the company's walls is a new
innovation strategy. Henry Chesbrough coined the term in his book "Open Innovation" to
describe the idea of opening up the innovation process so that ideas can come from any
source, whether within or external to the corporation.

Interaction between internal knowledge and external professional cooperation is known as

"open innovation." As a result, research institutions, universities, experts, and other firms
provide collective intelligence solutions to companies. All sources of innovative ideas will be
encouraged to participate in this event, which will create new contacts and chances.

Teece model

When it comes to profiting from innovation, Teece provides a model that takes into account
two crucial factors: easy copying (imitability) and complementary assets. Because of
intellectual property, technology protection, or the fact that imitators are unable to imitate the
technique, it is imitable. Complementary assets are outside the firm's technological
capabilities (manufacturing, marketing, redistribution channels, service, reputation, brand,
and complementary technologies)

Blue Ocean

He argues that if you want to be successful in the future, you must set aside harmful
competition between enterprises, grow the market, and create value through innovation. Two
common types of competitive circumstances are described by the author: blue and red oceans.
When it comes to business concepts, blue oceans signify the ideas that are yet to be
discovered. Industry limitations are clearly specified in red oceans and accepted as-is.
Product standardization is at its maximum with more rivals, resulting in brutal competition.

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Instead, blue oceans offer new markets in previously untapped regions, creating prospects for
sustained economic growth and long-term success.

1.3 Aims

INNOVATION'S IMPACT ON UK SMALL BUSINESSES is the primary objective of this

Research project.

1.4 Objectives
To identify and analyze the challenges to innovation management;

• To analyze the state of innovation in small and medium-sized businesses

How do small and medium-sized firms deal with internationalization challenges, and why do
they do it?

Small and medium enterprises (SMEs) have certain characteristics.

Why and how do businesses internationalize?

How can you overcome the obstacles and motivate yourself to internationalize your business?

1.5 The Structure of the Dissertation

This section lays forth the dissertation's framework.

Introduction to Chapter 1

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Information about the study topic's history and significance is provided in this section of the
report. In addition to the hypothesis, the chapter also outlines the research's goals and
objectives.

A Literature Review in Chapter 2

As part of this chapter, a thorough literature review is conducted on the topic of innovation
management activities in organizations. In order to support the research, a variety of articles
and journals have been reviewed. Furthermore, a gap in the existing literature has been noted.

In Chapter 3, we discuss the methodology.

This chapter provides a full description of the research methodology, including the research
philosophy, design, approach, data gathering method, and technique. The chapter also
discusses the ethical considerations that go into the collection of data and the conduct of
research.

Findings, Analysis, and Discussion in Chapter 4

This chapter presents the results of the data collection, as well as a full analysis and
discussion based on the data.

This chapter concludes with a set of recommendations in chapter 5.

Conclusions and recommendations are provided in this chapter. Companies that are not
implementing innovation in GSCM are given recommendations.

Chapter 2: Literature Review

2.1 Introduction
In the modern age of the business market, every company wants to achieve extra benefits to
create market opportunities and enhance its market presence. Especially with the increasing
rate of SMEs (Small and Medium Enterprises) in the market, the companies now focus on
bringing innovation to the market with their products and services to stand out in the market
and achieve a competitive advantage. Innovation has become an essential part of business as
through creation, the companies can bring improvement in their products and services, thus
creating a competitive corporate culture (Pucihar et al. 2019).With the advent of the online
marketing industry, which is based on social networking, companies are becoming more
proactive in ensuring that all their stakeholders are notified of their marketing initiatives and

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products. This has also enabled them to respond quickly to customer requests and take care of
every part of their customers’ life. Innovation is one of the main driving forces behind the
creation of new business ideas. Innovation involves the use of new technology, tools,
processes, and human skills in contemporary business methods. The particular chapter shed
light on innovation management and its importance on SMEs

2.2 Innovation management in SMEs

Innovation management is part of a business strategy that further helps the company bring
better products and processes while fulfilling the company’s long term vision, mission and
target. As per the opinion of Băjenescu (2017), innovation management can be defined as the
systematic process of innovation and change management in organisational cultures that
includes the tasks of planning, organising, managing and controlling products, marketing,
business processes and corporate innovation. As per the view of Al Suwaidi et al. (2020), in
order to enable innovation, management has to move toward a more fundamental change
perspective, one that is not limited to the technology domain and the business domain and
surpass the operational requirements as well as customer expectations. Instead, the
transformation must be driven by corporate principles and values, which can further help in
introducing new products, create new and effective techniques and conquering new markets.
These principles and values can be in the form of a corporate vision, a set of strategic
objectives, and creative solutions for achieving business goals. Based on the requirements,
new innovations can be introduced in the business processes, and effective management of
innovation can be achieved. Organisations with successful transformation models for
innovation management often see significant improvements in performance and efficiency
due to their approach. Innovation management programs create conditions in which
businesses see an opportunity to improve themselves both in terms of performance and
product quality. According to Niewöhner et al. (2019), innovation management also helps
companies better understand the market, engage in new business ventures, and develop
market opportunities, which further generates competitive advantages in the market.Ensuring
success, a company competes to meet its objectives and achieve its business targets without
losing sight of the quality of products and services that customers expect, which is further
possible to achieve through innovation management. This means ensuring products meet
customer needs and responding to changes as per customer requirements while bringing new
avenues in terms of innovation. The value of delivering quality products and services extends
well beyond the short term to support long-term objectives, support customer loyalty, and

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provide a secure competitive advantage and competitive position, which is why innovation
management is essential in the business culture. Innovation management in SMEs can be
divided into three parts, which include product, process and strategic innovation.

on
I nnovati
Produc
roces
Strate
P c
t
gis
Figure 2.1: Innovation management
(Source:Guertlerand Sick, 2021)

Process Innovation

Process management is all about creating operational efficiency. The optimisation of business
processes can further bring strategic relevance and implement functional importance to
enhance efficiency using systematically improved activities, which are essential for bringing
innovation to the company (Guertlerand Sick, 2021).  Therefore, it can be statedthat
organisational changes will lead to a more dynamic business environment and improve
service orientation, thus increasing the system’s overall efficiency. This, in turn, implies a
better customer experience. In this context, as a direct consequence of these organisational
changes, business opportunities will grow, and their size will become evident. While bringing
process innovation, companies implement Theory of Constraints, Six Sigma and Lean
methodology to bring customer orientation and continuous process improvement.

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 Product innovation

In order to comprehend product innovation management, it is required to understand the

whole process of introducing a product in the market. It is a five-stage procedure that
includes research, development, testing, production, and commercialisation. In accordance
with Albassamiet al. (2019), research is the first stage of product innovation, where it is
required to do basic and applied research. In other words, it is the stage in which most of the
knowledge, or at least the most valuable, is derived. The reason the first stage of development
is called research, where the leadersunderstand the problem to understand and design the
right solution. The research includes the selection, preparation, analysis, selection and
evaluation. That way, better theoretical and experimental details can be achieved regarding
the product. In the development phase, the company implements systematic work that further
helps acquire new materials, installing new processes and systems and services to improve
the product. Testing occurs when the product development is complete, and it is to see
whether the product fulfils the company’s requirements or not (Dossou-Yovo and Keen,
2021). The next stage is production, and in this stage, the product is produced and monitored
continuously. The last stage is commercialisation, where it is required to create careful
preparation regarding the marketing plan to be successfully launched in the market.

Strategic innovation

The strategic innovation further helps understand market segmentation and the way product
line can be launched in the market (Väyrynenet al. 2017). The next creation is targeted
towards the user or the customer in the business. This allows for better insight into the way
customers can be targeted. It also helps in understanding customer preferences, service levels,
and priorities in the business. By combining these insights, analytics can provide additional
opportunities to improve the way the business is run. A final innovation is to create unique
and valuable experiences for every customer. 

Type of innovation Impact

Product innovation Product innovation helps a firm gain an
edge over competitions and enhance
performance abilities while availing a solid
market position.
Process innovation Process innovation can positively impact
productivity growth, and it further can
effectively establish digitalisation to attain
better growth prospects in research and
development.
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 Strategic innovation Strategic innovation can bring better profit
in the market and generate value and
competitive advantage.
Table 2.1: Innovation management and its impact
(Source: Dossou-Yovo and Keen, 2021)

2.3 Component of Innovation management

With the increasing market competition, small companies in the UK are also trying to bring
forth a more significant innovation in the products and services while strategically aligning
their internal contingencies. To develop and achieve success in this arena, companies must
focus on three main areas: business development, strategy and business operation. Business
development is a process by which the organisation seeks to enhance the customer experience
through customer acquisition. Strategies are implemented to maintain the customer base and
improve the value in the market while increasing business opportunities and sales prospects.
However, it is essential to keep the business operations while bringing quality management
and innovation after developing business strategies.In this way, the strategy development
process focuses on the critical roles of managers in creating a new management approach for
the company while maintaining quality. Therefore, it cannot be denied that quality and
innovation management are interlinked, as one cannot be achieved without another.

Quality management Relation with Innovation management

Focus on developing new markets and Develop new products to attract customers
customers
Meeting consumer needs To do so, perceive innovation to improve
quality.
Maintaining operational quality Implement the latest technology to perceive
valued quality in regard to innovation.
Table 2.2: Quality and innovation management interrelationship
(Source: Polak and Jurczyk-Bunkowska, 2017)

2.4The strengths of innovation management

It cannot be denied that innovation plays an essential role in the success of a company, and as
entrepreneurs, they keep coming with new ideas to provide multiple solutions for customers.
It is an important task to look at the different stages of technological development and the
specific capabilities of the firm to realise its innovation potential. A company can achieve this
by starting up an industrial research institute, such as research and development (R&D)
research and manufacture (R&M). It cannot be denied that innovation plays an essential role
in managingentrepreneurship, and its function is mentioned here.

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 Creative development

Since qualities of innovative management are required for the new businesses, it further can
be achieved while learning to be creative. To be entrepreneurial, a company must be capable
of taking risks. According to Castaldiet al. (2020), the goal is to establish and maintain a
profitable company in a stable and competitive market. Successful entrepreneurial enterprises
require the creativity and ability to seek new ways of creating value. This is the foundation of
the concept of transformational business models. The potential of the business in a
transformation process is the aim of innovation.The information age enables the generation of
new information, which, in turn, can inform all other actions. Nambisan et al. (2019) agree
thatit is also important to consider information as a collective, a network of different
information sources with various capacities. The information age may create many new
opportunities but also challenges, especially for individuals. These challenges require the
introduction of innovative processes, thus taking advantage of the unique capacity of the
information system. 

Continuous improvement

Innovation management further provides organisational sustainability while providing

continuous improvement through better packaging and re-branding. Innovation helps
companies build long term strategic relationships that will support growth. Chatterjee and
Ramu (2018) suggested that the key is to look after the company’s long-term interests,
partners, customers, suppliers, suppliers’ associations, and shareholders. Technology
development in this period is driven by the changing needs, tastes and expectations of
customers. Technology innovations create opportunities for new business models and a new
industry. Innovation fosters long term customer loyalty through products and services that
provide more value for their customers.

Reinforce the brand image

Innovation management further helps a company to develop strategic leadership based on

which they try to bring forth new innovations and recognise the major driver for success.
Innovation provides a platform for businesses to express themselves, compete against other
companies and acquire new customers (Kottemannet al. 2017). The technology is applied to
new business opportunities, and businesses can take advantage of the latest breakthroughs in
these new opportunities. Technology and innovation in the industrycannot be restricted to

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technological capabilities. It is also about understanding the processes, constraints, and
opportunities for leveraging that knowledge or utilising it (Herman, 2018). It is also about the
people responsible for ensuring that the innovation that happens is a benefit to them as a
company. Companies will have to consider the implications of their actions in order to gain
even greater success. It is not enough to be innovative, but it is also essential to show
outstanding leadership.

Having a Unique Selling Point

Innovation management further helps the business achieve USP when it comes to fulfilling
the demands of consumers while leveraging well-designed and unique yet cheap products.
Innovation in concepts and concepts development allows the companyto create new products
that cater to a target segment or a product niche without compromising or compromising its
core competencies while taking advantage of its most recent and promising technologies
(Huijbenset al. 2017). Innovation is also in processes that enable the business to innovate to
utilise better the limited resources available, which can be achieved by incorporating the best-
knowntechniques, technologies or approaches in the product line to achieve a superior end-
to-end customer experience. Customer engagement management systems, especially those
designed to support customer acquisition, will also require that the business processes for
interacting with customers be appropriately tailored to account for each customer’s unique
needs. 

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 Figure 2.2: The strengths of innovation management
(Source: Herman, 2018)

2.5 Benefits of innovation management in SME

Creating a significant business needs building growth through innovation as it is a powerful
and effective way of generating engagement in the company culture. As opined by Georgeet
al. (2020), while there is no easy solution for finding the right balance between innovation
and culture creation, creating a shared value proposition through the design of a value
proposition allows people to see business as the way to a new product. The same thing that
makes a product good becomes its distinct value. This combination of strong internal
leadership and innovative, customer-centric technology and processes has delivered several
high-growth businesses within our company. In compliance with Hanzawaand Yamamoto
(2017), it is also essential to ensure that this growth occurs in a sustainable wayover time. If
change is driven by a growth strategy that is based on short term and short term only then, the
company will experience a sustainable competitive advantage in the market. Therefore, it
cannot be denied that innovation is an essential part of leadership and requires constant
creativity, brainstorming and suggestions schemes that can bring benefits and advantages in
the market.

Innovation and employee engagement

One of the required benefits of innovation management is creating an employee-driven

environment, where they contribute the most by becoming a company culture. Achieving a
culture of innovation can be achieved by improving the quality of work and providing
excellent management support (Leonidouet al. 2018).  Leadership is about enabling
employees to contribute to the creation of a good reputation. In a highly competitive
workplace, the result of an innovation-led culture is vital. Managerial excellence is about the
ability to work effectively with employees. Social trust is about a sense that leaders and the
people around them are being heard and trusted. Therefore, when a leader provides its
employees with better recognition and motivation and inspires them to innovate, it further
helps them take a shared responsibility that further helps the business achieve its innovative
requirements.  

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 Culture of innovation

While establishing innovation management, SME company leaders can create a culture of
innovation, where they gain commitment from each of the stakeholders, such as employees,
and managers and build a trusting environment that further enables bringing creativity in the
products.The benefit for SME companies is that technology-related innovation can lead to
competitive advantage by providing increased efficiency and reduced costs and is thus
desirable. According to Vasilevet al. (2017), innovation is not about a specific product or
process; the key to success is in believing that innovation is about building an ecosystem of
value that extends beyond an individual organisation. SME business leaders must engage
with people with different perspectives and skills in order to find and foster a shared vision of
a future for the firm. Collaborating with people with different perspectives and skills is
essential to SME innovator.As per the view of Kielet al. (2020), by promoting a culture of
innovation, SME companies can generate increased revenues from dynamically selling their
products. This also means that these companies can afford to invest in research and
development processes that produce innovative products for their own future. Achieving a
healthy and creative corporate culture is vital to SMEs because it provides the foundation for
a firm’s reputation. 

Increases a sense of community

Creativity, innovation and productivity can only be possible to achieve when SMEs
introduces a sense of community, which further can be achieved through innovation
management (Niewöhneret al. 2019). The business leaders of the SEMs through innovation
management try to create cohesion among the employees so that they can contribute to the
product development stages and together bring forth innovation. Therefore, it further
influences the workers to communicate among each other and brainstorm ideas to introduce
innovation in the products. This can implement a trusting environment and help in building a
sense of community.

Sustainable competitive advantages by bringing transparency

One of the most important benefits of innovation management is that it can create sustainable
competitive advantages while bringing transparency in the development of the products and
processes. In agreement with Cropleyand Cropley (2017), a key objective of innovation is to
create more value and efficiency using techniques and technologies that have a more
excellent utility to society and the environment. The creation of value is achieved by

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continuously improving the efficiency of the process—the improvement of efficiency results
in greater satisfaction of users. Efficiency is the basis for market competition; it is a
company’s property in its relationship with the market, the supply and demand. An
innovative solution usually offers a more cost-efficient solution because of the lower number
of components. According to Guertler et al. (2019),creative solutions can benefit users better
and faster because it enables them to obtain new functionality in the product without being
dependent upon expensive parts. Moreover, customers likely get to know about the processes
and materials and technologies used in the products, which can further satisfy them and
create a better relationship with them.

Bring transparency in decision-making

While implementing innovation management, companies introduce innovation management
software that further prevents duplication and helps in optimising the innovation process. It
additionally brings better transparency, which helps in making clear decisions. Moreover, by
introducing innovation in products and services, employees can bring better inputs that
further help in making networked decisions regarding innovation. Also, if innovation
management software is implemented in the team, it makes the decision-making process
much easier and more trackable that saves time and money.

Better consumer experiences

By implementing innovation management, companies focus on user experiences and
individualism that further present helps them to gain growth and competitiveness in the
market (Cropley and Cropley, 2017). Users can provide valuable feedback and suggestions to
implement better quality and innovation in the products that further help them understand
consumer needs and, based on that, bring changes to provide better experiences to consumers.

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 Figure 2.3:Benefits of innovation management on SME
(Source: Leonidouet al. 2018)

2.6 Challenges of innovation in the SME

Although innovation is a required factor in the competitive SME market, it is not always easy
to maintain a robust, innovative strategy to implement innovation. Sometimes, SMEs may
face challenges while implementing innovation in their business strategies. Some of the
challenges are mentioned below.

Missed innovation strategy

While creating a new business, the leaders need to implement an innovation strategy in the
market; otherwise, the company will not be able to bring a continuous innovation process in
the culture (Boonand Edler, 2018).Innovation is a process that can be carried out with the
help of the people, which enables them to realise their potential. Entrepreneurship means the
ability to innovate and create a business of one’s own to earn profit. However, suppose a
proper innovation strategy is not established in the market. In that case, an SME cannot
prosper and create a continuous source of income, which further can be challenging for them
to stay in the competition.  

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 Employees are not empowered

In an SEM culture, if employees do not feel empowered, it can create a hindrance in bringing
effective results in terms of implementing innovation and creativity in the market. According
to Aguilar-Barcelóand Higuera-Cota (2019), in any startup, the mission statement or the
vision must be met if the culture and business goals are to continue. The mission statement
should be clearly stated and clearly communicated. If it is not in the mission statement and
the project does not make sense to the customers, they may have a problem (Mazzucato,
2018). The leaderscannot communicate their vision, mission, and philosophy to employees in
the organisation and vice versa; it further can bring challenges for the company to continue
their business innovation and lead to less successful business ventures.

Lack of collaboration

Another challenge of not establishing a proper innovation strategy is a lack of collaboration

among the employees and leaders that further can hinder the growth of the business in terms
of innovation. According to Lengoiboniet al. (2019), the importance of cooperation for the
success of any business initiative rests on the strength of the ability to share knowledge
effectively, promote collaboration, and initiate meaningful solutions for the problems.
Teamwork is necessary for achieving all three goals. For a business to have success in
innovation, it must take innovation initiatives. However, without collaboration and
cooperation, effective results cannot be established in the market, and innovation cannot be
achieved.

Missed customer connection

If innovation is not found in SME products, it cannot provide a good result for customer
satisfaction as consumers cannot link with the products. Customers are the key partners of the
business based on which a company can gain a better position in the market. It further can be
possible to achieve while providing customers with innovative products that fulfil their
requirements and satisfy them (Tiddand Bessant, 2018). It is well known that customer
satisfaction is highly relevant to a company and the company’s reputation. However, it is not
always easy to satisfy consumers with the products, and if they feel that the company is not
able to fulfil the demands, they are not going to stick to the company.

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 Lack of diversity

Due to the size of the companies, in particular firms, hired employees in the teams are not
diverse enough. Engaging for innovation with a diverse group can be an effective strategy to
involve creativity and innovation due to diverse thinking (Giones and Oo, 2017). However,
the lack of diversity can lower the ability to innovate and make it hard for businesses to stay
competitive.

A gap between knowing what to do and doing it

The SMEs understand that UK organisations need to know when digital disruption is required
to achieve opportunities and growth to survive in the competitive atmosphere. However, the
problem remains that they understand digital disruption is necessary to bring effective change
and scope for innovation; however, it is not always easy knowing the right step and doing so.
That way, a gap is created in understanding.

Figure 2.4: Challenges of innovation in the SME market

(Source: Tiddand Bessant, 2018)

2.7 Identifying innovation management in SMEs

In order to bring innovation management in the market, it is required to create a strategy
based on which innovations can be implied in the organisational culture (Do et al. 2018).
Thereby, to implement innovation management, it is essential to establish clear guidelines by

21
the leaders regarding implementing innovation strategies to manage innovations and
creativity in the organisational culture. An SME can bring forth effective results in innovation
management.

Spot opportunities

The first strategy for innovation management in the market is to spot opportunities while
implementing short and long-term goals based on which innovations can be achieved in the
products and business processes. As per the opinion of Shafiq et al. (2017), by making
decisions and then implementing them, the company optimises the long-term profit in the
market, which further is possible to implement when enterprises introduce innovative
products in the market. When this strategy is applied, the market realises the strategic benefits
it has to provide long-term welfareto acquire better market share in the competitive market
while fulfilling the requirements of introducing innovation in the products.

Prioritising opportunities

However, the company needs to understand in which sector they need to implement
innovation management, for example, whether it is business processes, products, or
marketing, while prioritising opportunities.Based on the company’s need, it is required to
have better knowledge, and for that, implementation of better resources will be needed so that
innovation management can be achieved in company culture (Bichurova and Yordanova-
Dinova, 2018). SMEs can increase their profit margin by investing in their own people and in
customer relations, which further can bring better results in terms of innovation management.
The business process that has to be put into place is also a key consideration. This process
helps to bring new ideas to market and generate innovation. That way, the companies can
prioritise the opportunities based on which they can bring innovation to the market and
handle their innovation management efficiently

Testing innovation

The next stage is testing innovation strategies in innovation management and seeing which
one is the most suitable while brainstorming or prototyping ideas. As per the opinion of
Holgersson et al. (2018), the next step is to take a product or business process and make sure
it meets the key objectives of innovation management. If this does not work, then identify the
areas to focus on and take action. Having decided what specific requirements need to be at
the next stage, there should then be a set of strategic goals and action plans in innovation

22
management. That way, the company can create better strategies and bring changes based on
the requirements to testify the innovation and generate better innovation management.

Build support for innovation

Building support for innovation is further required to implement as it is essential to share

with the stakeholders and understand their perspective in managing innovation and
implementing innovation management in business culture. It can be possible to develop
policies and procedures, including adequate statutory authorisation and regulatory structures,
for different actors to use according to their processes while taking a stance for innovation
management (AUJIRPONGPAN and HAREEBIN, 2020). At the same time, it is essential to
create joint strategies that facilitate the coordination of various actors within and among their
business sectors to generateeffective innovation management. Also, while implementing the
system, effective decisions regarding handling innovation need to be considered along with
the learning requirements.

2.8 Conceptual framework

The conceptual framework about how a company can adopt innovation and introduce
innovation management and the factors that further impact the decisions and choices
regarding innovation management. Innovation, then, is making new ideas and the process that
makes them a reality. It is the process of adopting and deploying new ideas in the business. It
is a process that is evolving, and its impact is constantly changing. There are three
characteristics in a successful innovation that will make any company successful:
competition, value creation, and user acceptance (Al-Rahmi et al. 2019). While creating
innovation management, it is essential to implement communication channels through which
a company can innovate and move through the adaptation process.

Moreover, according toPinho et al. (2021), seeking knowledge is necessary to manage and
bring innovation and handle innovation management. The implementation of innovation
management further shows that implementing the new system, products and marketing
efforts, deciding who gets to use the system and the impact on system operations (Al-Emran
et al. 2018). Achieving the target of a good quality product at a competitive price, on time,
and a budget is essential in today’s industry, which can be achieved through innovation
management. At the same time,gaining this target will require the company to make any
changes, including simplifying processes and eliminating waste, leading to inventory
reduction. According to Salloum et al. (2019), continuous improvement in the business

23
processes, marketing efforts, and products is critical in achieving better innovation
management.

24
 The Impact of Innovation Management on
Small Companies in the UK

Components of Seeking knowledge is Challenges of Innovation

Innovation management necessary to manage and management
bring innovation

Maintaining Continuous improvement in the

business processes, marketing
Focus on developing new operational quality
efforts, and products
markets and customers

Missed innovation
strategy leading to lack of
Meeting consumer
income
needs Employees are not
empowered leading to less
successful business ventures

Missed customer connection

Lack of diversity in product innovation
leading to lack of consumer
and A gap between knowing what to do
engagement and dissatisfaction
and doing it, that leading towards a lack of
creativity and collaboration

Figure 2.5: Conceptual framework

2.10 Gap analysis

Since every research has a gap as the previous researchers sometimes overlook the required
documents that could have made the study more impactful, it further provides the future
researchers to conduct adequate research on the same topic.As per the view of Sumanapala
and Wolf (2019), the gap analysis considers the missing pieces within research literature that

25
have not been explored previously. The first step towards the success of data exploration is to
provide a good overview of the study objectives and scope and understand the area of
improvement. The scope should be defined in the research contextand highlights the areas
that further can be improved. This method is an essential step in the quality of the study, and
future researchers should always go back to the very beginning for further assistance with all
the necessary papers and projects if a gap is noticed in the research. While analysing previous
studies, it can be seen that the earlierinvestigations focused on innovation management;
however, it was not limited to SMEs, which further provided the researchers to do additional
research,especially on SMEs and their ways of handling knowledge management. The entire
focus has been provided to innovation management challenges.On the other hand, the
components of innovation management, such as how SMEs can create market segments and
fulfil consumer needs by managing their operational excellence, were not disclosed in the
previous research. At the same time, it was also not shown in the earlier studies that the
benefits of innovation management, such as aligning employee work process to operational
excellence and consumer needs or bringing better innovation management while utilising
innovation management software. All these points were missing in previous studies, which
further created a gap in understanding the exact role of innovation management in SMEs. It
was also unclear how they can reap the benefits of aligning innovation management with
their operational and customer management capabilities while creating their consumer bases.

2.11 Summary
While summarising the chapter, it can be said that the focus has been provided to innovation
management, which further can help the companies gaining better benefits in the market in
terms of competitive advantage.Since the research objective is to understand the importance
of innovation management in small and medium-sized enterprises and its components and
benefits, it further can help the researchers understand how innovation management can be
introduced in the products and services while managing the operational efficiency of the
companies. The main focus of innovation management in SMEs is to bring innovation in
their products and processes to generate competitive advantages and gain effective results
while gaining a better market position. This requires the creation to be a product, a service or
an invention that could, in time, help the business to gain better recognition and a reputation
of the innovator.

26
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Chapter 3: Research Methodology

3.1 Introduction
Research methodology is the specific process based on which researchers use techniques to
find out, select, process, and analyse information regarding a topic.  In other words, there is a
process for discovering the data; when the subject will be identified, the process is then
followed to extract, summarise, and analyse the knowledge that the topic requires. Therefore,
it can be said that methodology is a systematic design of the study taken into consideration by
the researchers to understand its validity and reliability and reach a conclusion regarding aim
and objectives. A methodological choice that will justify the selected methods and techniques
will be the best for completing the research successfully while generating practical answers.
The chapter will focus on providing the best research outcome to understand the main topic
while fulfiling the objectives and answering the research questions efficiently.

32
3.2 Research onion framework
In order to do research systematically, a research framework will need to be implemented in a
study to fulfil the requirements, and for this research, the appropriate one will be the
Research Onion Framework. Melnikovas (2018) further will help illustrate how various
elements are involved while doing research and how they follow the research design. There
are mainly six layers in a research onion: research philosophy, research approach, strategy,
choices, time horizon, technique, and procedure. As suggested by Sinha et al. (2018), it can
be said that while fulfilling the requirements of the stages, the researchers will collect data
and will analyse them to reach a concrete conclusion. The next step is to decide whether the
results will be valuable and contribute to the development of knowledge depending on the
topic. Therefore, the research onion framework will be considered a holistic approach
regarding the methodology that will help understand the decision based on which
researchwill gradually reach its conclusive stage while delivering the required amount of data
to validate the research topic.

Figure 3.1: Research onion Framework

(Source: Sinha et al. 2018)

3.3 Research outline

Research Outline
Research philosophy for the dissertation Interpretivism
The research approach for the study Inductive
The research design Descriptive research design

Selected research methods Qualitative analysis

Data collection method Primary data collection method

33
 Table 1: Research outline
3.4 Research philosophy
Research philosophy is the first stage of research methodology that further deals with nature,
sources and advancement of knowledge.  As per Marsonet (2019), it is a study of how the
processes and techniques can be put into place to produce evidence, a model, or a systematic
analysis of the problem.The research philosophy will aim to understand the nature of the
study environment’s nature to interpret the data as a subject, an event, a collection of events,
or a pattern. The research philosophy is mainly four types which include positivism, realism,
pragmatism and interpretivism.Positivism philosophy adheres to factual knowledge while
gathering through quantitative instruments, and interpretation occurs through the objective
way. On the other hand, realism depends on the idea of independence of reality that is
different from the human mind, and it is based upon the assumption of the scientific approach
through which knowledge is developed. Pragmatism is the mixed methodology that is based
on an ideology, where practical consequences are accepted, and unpractical ideas are
rejected. Therefore, it is the amalgamation of qualitative and quantitative research methods.
However, since the research is based on gaining primary qualitative, it is best to implement
interpretivism methodology. According to Ryan (2018), Since the thorough research will be
based on a semi-structured interview, the researchers will apply interpretivism philosophy as
implementing interpretivism; the researchers will interpret different elements of the study.
Researchers can gain access to reality based on the philosophy while implementing shared
meaning, consciousness, and instruments.

Moreover, interpretivism will concentrate on qualitative analysis and further discuss the
topic’s essence while depicting the issues. At the same time, as per Alharahsheh and Pius
(2020), researchers will establish better knowledge and create a link with the research
subject. Furthermore, with the help of semi-structured interviews, honest and trustworthy data
will be generated, and knowledge regarding the topic will be availed. Since the research
topic is based on the importance of innovation management on small-medium companies of
the UK, while implementing the philosophy, better observation will be achieved on how the
companies will bring forth innovation management and create better opportunities for
innovation the companies.  

34
 vism
sm
etivism
atism
Positi
Reali
Interpr
Pragm
Figure 3.2: Research Philosophy
(Source:Alharahsheh and Pius, 2020)

3.5 Research approach

Research approaches are considered plans and procedures for the study that starts from broad
assumptions and leads to a detailed process of data collection, data analysis and
interpretation.  These methods are then used to generate actionable information on a large set
of potential problems that might be identified in the study and a bunch of design,
implementation, and evaluation tools that guide the process (Pearse, 2019).Instead, a method
of combining research with design and evaluation can ensure that the best results are
achieved for the study.Three kinds of research approaches are present, and that includes
inductive, deductive and abductive. The deductive approach is based on developing a
hypothesis, which depends on existing theory and goes well with the quantitative approach.
On the other hand, the abductive research approach starts with puzzels or surprising facts and
is mainly based on providing a proper explanation. However, since the investigation will be
takinginterpretivism into consideration, the inductive approach will be viewed as one of the
best approaches to go with interpretivism among inductive, deductive and abductive
approaches. In keeping with Tuffour (2017), the inductive approach will mainly address the
search for patterns generated from observation and will develop explanations from there. The
primary reason for using the inductive approach will be generating meanings from the data
set collected in the semi-structured interview (Woiceshyn and Daellenbach, 2018).Therefore,

35
the researchers will be able to come to practical results and outcomes to validate the data
from experiences and identify preliminary relationships among the research findings. Since
the research topic is based on innovation management and how it impacts the UK small-
medium businesses, implementing the deductive approach,a better understanding will be
achieved between innovation management, digital disruption and creativity, and how it will
affect knowledge sharing and idea generation in small companies’ culture in the UK. This
will further be achieved while evaluating the semi-structured interviews.

Figure 3.3: Research approach

(Source: Woiceshyn and Daellenbach, 2018)

3.6 Research design

Research design is the overall framework that the researchers choose to focus on research
methods and techniques suitable for the topic and help the researchers reach a concrete
conclusion (Tobi and Kampen, 2018). The basic steps of design for a study are selecting the
sample, selecting the data, and selecting the analysis style to be performed. The decision to
choose the selection of interest will include both intention to undertake the study or not and
the types of questions that will be asked. The research results will be derived from the
selected sample, and analysis of the data will be carried out to understand the behaviour of
individual participants. In this study, descriptive research design will be taken into
consideration where the researchers aim to systematically and accurately describe a situation,
population, or phenomena while answering questions such as what, when, how and where

36
(Abutabenjeh and Jaradat, 2018). It is often used to measure the quality of the research while
investigating one or more variables, the credibility of studies and the appropriateness of a
particular outcome. Furthermore, according to Upright and Forsythe (2021), it will be used to
ensure that the research results, findings and conclusions are complete, unbiased, plausible,
relevant and valuable to the research question being investigated. Therefore, the descriptive
research will further help the researchers collect helpful information regarding innovation
management and how small companies in the UK can successfully implement them to
achieve a competitive advantage in the market.

Figure 3.4: Research design

(Source: Abutabenjeh and Jaradat, 2018)

3.7 Research method

In a research study, mainly two research methods will be utilised, including quantitative and
qualitative research methods. In the research, the qualitative research method will be used. As
mentioned by Queiróset al. (2017), qualitative research is all about collective non-numerical
data, for example, opinions and experiences from the participants or previously done
investigations.It can be used for a variety of research using information gathered from
users. This is especially relevant in research in which the participants or their experiences
might be used as the basis for predicting a future outcome or outcome variable. This is an
example of an actual situation in which qualitative information will be used as a variable, and
predictive analytics will be used as a process to predict a future outcome. It can be said that

37
qualitative research will aim to understand the underlying opinions, reasons and motivations,
which further will help in understanding the problem of the study (Levonianet al. 2020). It
follows a semi-structured or unstructured technique. In the meticulous research, a semi-
structured interview will be created for the eight small company leaders on how they
implement innovation in their companies and how it can impact their future growth.

On the other hand, quantitative research deals with numerical data that can be transformed
into usable statistics. Quantitative research deals with statistical data that can be transformed
into useful numerical information. In compliance with Gilad (2019), the quantitative analysis
will usemeasurable information, generalising results for formulating facts and discover
patterns in research.  However, since the investigationwill be based on a semi-structured
interview, therefore, implementing quantitative analysis will not be required in the study.

Figure 3.5: Research method

(Source: Levonianet al. 2020)

3.8 Data collection method

In the detailed research, data will be collected using the primary data collection method. As
opined by Heap and Waters (2019), primary research is the research method where
researchers collect data directly and analyse them to reach a concrete solution. Surveys,
interviews, focus groups and observation, are examples of primary research. In the research
methodology, primary research will be considered authentic and accurate as it is customised

38
to suit personal requirements as well as the need of the businesses. In compliance with Raj
(2020), data collected from respondents will be analysed to identify the factors that will likely
be affected while fulfilling the requirements of the research study by focusing on the problem
at hand and directing to attaining potential solutions. This will further allow the researchers to
go in-depth about the research problem and look for all foreseeable options before taking the
appropriate one. In the particular research study, a primary qualitative research method will
be applied. A semi-structured interview will be considered apt to collect data on innovation
management and its impact on UK small companies. That way, sufficient and accurate first-
hand data will be collected, which will help the researchers understand how innovation
management can be achieved and better established in the company culture.

3.9 Data analysis technique

Since the primary qualitative analysis will be considered as the appropriate way of arranging
the research, a semi-structured interview will be organised to discuss the topic. An em--
structured interview will be conducted to generate effective data on the research study.
Fifteen semi-structured questions will be asked to the leaders of the small companies in the
UK to understand their views regarding how they ensure innovation is maintained in the
company culture. While taking permission from the leaders, the company HR will be
connected through emails and consent letters will be sent to them, which they will need to fill
before taking part in the interview. Due to COVID-19, the interview will be done through the
online platform Zoom.

3.10 Sampling method and sample sizes

Since only qualitative research will be considered in the form of a semi-structured interview,
it will be expected that at least 15leaders, who are managers,will participate in the interview.
However, it is likely that at least 5 to 8managerswill be ready to face the interview. Since the
research is based on a primarily qualitative study, the researchers will gather maximum
evidence that will validate that innovation management willbe given predominance in small
and medium-sized companies. Also, the questions will be based on innovation management
and their ways of introducing and maintaining innovation management in the company
culture. Since the overall results will be depending upon gaining maximum answers, it will be
expected that at least 30 leaders will positive reply to the requirements and will share their
views and strategies with the researchers. That is whythepopulation will be 15, whereas the
sample size will be 5 to 8. Since managers are responsible for bringing innovation and
maintaining a culture for innovation management, it will be better to interview them as their
39
approach to innovation management can be gained. Therefore, the researchers have decided
to take the interview of managers as they can gain appropriate information.

3.11 Validity and reliability

While carrying out a study, validity and reliability are two primary reflections that will need
to be considered—validity in the research will deal with the authenticity of the research.
Data quality in the study will deal with the integrity of the data of the study. According to
Mohajan (2017), validity is a valid measurement that further produces accurate results that
correspond with reals characteristics and variations. The validity measure is usually a ratio of
the difference between sample size and the sample mean. This means that the lower the ratio,
the better the estimate of validity. In general, validation tests that are true and valid will be
used as the source of verification to verify that the application is working. On the other hand,
reliability will deal with consistency, which will be achieved by test-retest reliability, internal
consistency and inter-rater reliability (Vakili and Jahangiri, 2018). If there will be any doubt
about a problem, a reliable indicator will be used to test the possibility of the pain being
caused by a known fault.  Therefore, in the research, all factual knowledge will be gathered
while maintaining validity and reliability. Moreover, in the study, anonymity will be held and
based on that, no one will be able to identify the participants, and the overall interview will
be held virtually. At the same time, confidentiality will be maintained, and the researchers
will take steps to ensure the protection of the subjects. The researchers will design the
research while maintaining fairness and look after the fact of who will benefit from the
research (Clark-Kazak, 2017). In this aspect, it can be said that future researchers and SMEs
who want to implement innovation management can be beneficial. Based on non-maleficence
and beneficence,no participants will come to any harm, and their well-being will be
maintained.

3.12 Ethical Consideration

The research will need to be done while maintaining ethical considerations as it has enormous
importance in managing a proper way. While carrying ethical review, the researchers will
inform their higher authorities regarding the intention of the research study, and informed
consent will be obtained before starting the research work (Clark-Kazak, 2017). Moreover,
ethical consideration will be further essential to maintain the flow of the research in a planned
and systematic process. This way, legitimacy and transparency will be held throughout the
investigation. All the data that will be collected were stored while maintaining privacy and
confidentiality. In this aspect, The UWS University guidelines for ethical practices will be
40
followed so that the researchers will able to maintain the highest standard of rigour and
integrity (uws.ac.uk, 2021). They will further pursue the principles of the university that will
be based upon honesty, rigour, transparency and respect and care. Moreover, all the
researchers will follow fairness and equity while handling participants. While gathering
informed consents, the details regarding the research will be generated to the participants so
that they will understand the nature of the study and the procedure of the same (uws.ac.uk,
2021). They will be given sufficient time to study all the information in the consent form and
make their own decisions as per the university guidelines.

All participants’ identities will not be disclosed, and complete confidentiality will be
maintained (Brooks, 2019). Also, no one will be allowed to leak the results before it is
officially over, and the research results will show open and honest data. At the same time, no
one will be compelled to participate, and accurate information will be collected for the
research.

3.13 Limitations of the research

While conducting an investigation, research limitations can be faced, which further need to
be identified. One of the main limitations will be having limited funds available, for which
secondary research will not be considered to do as peer-reviewed articles cost a considerable
amount, which will not be possible to utilise. Also, time constraints will be another difficulty
that the researchers faced while conducting the research. At the same time, not being able to
gain an appointment of the managers within a limited timeframe may create challenges. Since
all the managers may have different perspectives, it may develop data with questionable
values. Moreover, the limitation can be challenging as it may offer extremes, which can be
challenging to support the study objectives. Also, it may require multiple sessions, and due to
lesser time availability, it may be challenging to reach the desired outcomes.

3.14 Summary
While summarising the chapter, it can be said that primary qualitative and quantitative
research will be considered to do. Moreover, interpretivism philosophy, descriptive design
and inductive approach will be implemented. Validity and reliability will be measured, and
ethical considerationswill be taken into account for the research. Survey and interviewswill
be considered to do the research analysis.

41
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research methodology: A guide for public administration researchers and
practitioners. Teaching Public Administration, 36(3), pp.237-258.
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tion_of_research_design_research_methods_and_research_methodology_A_guide_for_publi
c_administration_researchers_and_practitioners/links/5c886f04299bf14e7e7831e9/Clarificati
on-of-research-design-research-methods-and-research-methodology-A-guide-for-public-
administration-researchers-and-practitioners.pdf

Alharahsheh, H.H. and Pius, A., 2020. A review of key paradigms: Positivism VS
interpretivism. Global Academic Journal of Humanities and Social Sciences, 2(3), pp.39-43.
https://www.gajrc.com/media/articles/GAJHSS_23_39-43_VMGJbOK.pdf

Brooks, V., 2019. Ethical awareness and socio-legal research in the UK. In Routledge
Handbook of Socio-Legal Theory and Methods (pp. 110-122). Routledge.
https://westminsterresearch.westminster.ac.uk/download/5bc3847893dfcb34c813ca8dcddd8c
0f48c0df4bb08305e1a359d2e844210eb2/165852/9781138592902c08%20CE
%20%281%29.pdf

Clark-Kazak, C., 2017. Ethical considerations: Research with people in situations of forced
migration. Refuge: Canada's Journal on Refugees/Refuge: revue canadienne sur les
réfugiés, 33(2), pp.11-17. https://www.erudit.org/en/journals/refuge/1900-v1-n1-
refuge03391/1043059ar.pdf

Gilad, S., 2019. Mixing Qualitative and Quantitative Methods in Pursuit of Richer Answers
to Real-World Questions. Public Performance & Management Review, pp.1-25.
https://scholars.huji.ac.il/sites/default/files/sharongilad/files/gilad_mixed_methods_25.9.18.p
df

Giones, F. and Oo, P., 2017. How crowdsourcing and crowdfunding are redefining
innovation management. In Revolution of innovation management (pp. 43-70). Palgrave
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https://www.researchgate.net/profile/Ferran_Giones/publication/311490387_How_Crowdsou
rcing_and_Crowdfunding_Are_Redefining_Innovation_Management/links/59c8f14b0f7e9bd

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2c01a4116/How-Crowdsourcing-and-Crowdfunding-Are-Redefining-Innovation-
Management.pdf

Heap, V. and Waters, J., 2019. Data collection methods. In Mixed Methods in
Criminology (pp. 141-176). Routledge.
https://www.taylorfrancis.com/chapters/edit/10.4324/9781315143354-8/data-collection-
methods-vicky-heap-jaime-waters

Levonian, Z., Erikson, D.R., Luo, W., Narayanan, S., Rubya, S., Vachher, P., Terveen, L. and
Yarosh, S., 2020, May. Bridging qualitative and quantitative methods for user modeling:
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International AAAI Conference on Web and Social Media (Vol. 14, pp. 405-
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Marsonet, M., 2019. Philosophy and logical positivism. Academicus International Scientific

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Melnikovas, A., 2018. Towards an explicit research methodology: Adapting research onion
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Mohajan, H.K., 2017. Two criteria for good measurements in research: Validity and
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Pearse, N., 2019, June. An illustration of deductive analysis in qualitative research. In 18th
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Queirós, A., Faria, D. and Almeida, F., 2017. Strengths and limitations of qualitative and
quantitative research methods. European Journal of Education
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Raj, A., 2020. Chapter-9 Data Collection Methods in Social Science. RESEARCH

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Suryadevara/publication/346623782_Research_methodology/links/5ff6c4bd45851553a026d1
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Ryan, G., 2018. Introduction to positivism, interpretivism and critical theory. Nurse
researcher, 25(4), pp.41-49. https://oro.open.ac.uk/49591/17/49591ORO.pdf

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Tuffour, I., 2017. A critical overview of interpretative phenomenological analysis: A

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Management: Utilising a Descriptive Case Study Design. Kentucky SHAPE Journal, p.64.
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uws.ac.uk, (2021). Guidelines for Ethical Practice in Research and Scholarship. Available at:
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Vakili, M.M. and Jahangiri, N., 2018. Content validity and reliability of the measurement
tools in educational, behavioral, and health sciences research. Journal of Medical Education
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Deductive-Research-in-Management-Studies-Implications-for-Authors-Editors-and-
Reviewers.pdf

45
Appendix: Semi-structured interview questions
1. As an innovation manager, what kind of strategy do you implement in the company
culture?
2. How do you ensure that employees follow the implemented strategy effectively?
3. Why do you think that innovation management has become essential in the company
culture?
4. What kind of challenges does your company face when innovating?
5. Do you think investing in modern technology is essential in the changing
environment, and how can your organisation gain benefit from it?
6. How do your company maintain a culture of innovation in the market?
7. How is your company attain innovation in the market to gain a competitive
advantage?
8. Do you think that too much interdependency in the system can bring difficulties in
innovation and why?
9. Why do you think interpersonal communication is essential for innovation
management, and how do you ensure that?
10. What are the performance methods implemented in your company to control
innovation?
11. Do you agree that disruptive innovation can help in attaining sustainable advantage in
the market? Specify the reasons
12. Do you think that opportunities are required to be identified for implementing
innovation, and resources are required to produce?
13. How do you link employee empowerment with innovation management?
14. Specify the role of innovation management software in bringing efficiency in process
and product innovation.
15. What is your greatest strength as an innovation manager, and how do you handle the
idea management process to generate innovation to gain better results?

46
Chapter4

Findings from questionnaire

Question1

60

50

40

30

20

10

0
male female

Question 2

47
 8

0
a)      21 to 30 b)      31 to 45 c)      46 to 55 d)     56 and more

Question 3

5
4

3
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on 1 ye d
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m to 3
6 to an
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tha on
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Question 4

48
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9
8
7
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Question 6

49
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Question 7

12

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Question 8

50
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Question 10

51
 14
12
10
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Question 11

8
7
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ly     
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Question 12

52
 12

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Findings

Innovation in small and medium-sized enterprises (SMEs) is subject to particular conditions.

Mittelsized enterprises, like major corporations, struggle with a shortage of resources when it
comes to concept management and innovation management.

As opposed to giant organizations, which employ innovation managers and have their own
departments for digital change and innovation, medium-sized enterprises handle innovation
as part of their regular operations. Innovation management in medium-sized firms is therefore
particularly unique.

Small and medium-sized firms have a difficult time managing complicated innovation
processes, which involve a lot of time and human resources. Sometimes, they aren't even
essential, let alone useful.

It's not uncommon for small and medium-sized businesses to have an extremely results-
oriented corporate culture. The establishment of an innovation culture is typically predicated
on the existence of certain fundamental conditions.

53
How can small and medium-sized businesses successfully implement innovation? The
following five recommendations will help you develop a lean and goal-oriented innovation
management system in small and medium-sized businesses.

1. Start with little steps of innovation in small and medium-sized businesses (SMEs).

In small and medium-sized businesses, innovation entails creating new ideas and
systematically implementing them. Re-inventing the wheel in your sector is a bad idea!
Instead, start small, such as with a company-wide idea competition. By doing so, you invite
your staff to think on a topic on which they, ideally, can all have a say.

If the task is not too hard, you'll notice that people are more passionate about concept
management and innovation management. This competition should last two to four weeks.
The basis for innovation is having employees rate the ideas they receive. The proposals are
also evaluated by a jury of managers from diverse areas of expertise. You will offer different
innovation prizes at the end of the competition, including those for the best user idea and the
best jury concept, respectively.

You may regulate the selection process of ideas by organizing an idea jury. Last but not least,
the best ideas should be put into practice. Innovative ideas can be generated fast and easily
with the help of some softwares

Distinguish between the many functions that innovation plays in SMEs

Employees who are excited about innovation in medium-sized organizations should be

recruited early.

54
Assign special responsibilities to these staff.

Employees that have ideas and want help on how to develop them further should contact
innovation coaches.

Idea partners are managers who are willing to sponsor ideas and dedicate themselves to them
within the limits of their creative abilities and resources.

Your company's Innolytics® software can help you define and introduce these roles. Find out
how this can be done in our DOMO Chemicals case study. Read on to learn more.

Employees with these roles can be excluded from the user administration. An innovation
coach with experience in digital marketing may be needed. It should be made easy to locate
these employees and contact them. Employees can update their user profiles on a regular
basis. An internal directory of technical competence and positions in innovation management
is created as a result of this project.

3. In SMEs, innovation is a company-wide concern.

In terms of innovation management, there are two distinct approaches:

In-house innovation and digitization

company's specialized sections about the topic

55
As a result, certain types of innovation are executed in departments while others are handled
by departments or temporary teams.

In medium-sized companies, innovation does not necessarily require a dedicated division.

Management of innovation is frequently the responsibility of all employees, from gatekeepers

to management. Most commonly, small and medium-sized businesses are more successful
when they distribute innovation management to different heads inside the company, rather
than creating separate departments within their own companies. Why? Innovative problem-
solving is one of the hallmarks of small and medium-sized enterprises (SMEs).

The work of medium-sized organizations is more improvisational than that of giant

corporations, where methods are generally standardized. As long as you can adapt current
information to the situation and use it in modified form, improvisation is not bad. As a result
of exploiting and enhancing the existing innovation culture, the entire organization can
benefit from innovation. Working groups are often formed for certain duties – such as certain
projects – and then disbanded after a specified period of time. Larger companies should have
their own innovation management departments if they are going to work on large-scale, long-
term initiatives. Think of digital innovation or radical product innovation, for example

A high degree of internal networking is required for innovation in small and medium-sized
businesses (SMEs).

The component pieces of the puzzle are present in many minds within the organization.
Identifying and connecting the proper jigsaw pieces in the minds of employees is crucial
when developing new products and services or digital breakthroughs. Most managers and
employees in a business with less than 100 employees know what the others know. The more
a corporation grows, the more difficult it is. If your organization has more than 250
employees, it becomes increasingly difficult to share expertise across departments.

56
Despite this, the quick exchange of knowledge within an organization remains one of its most
significant competitive advantages, according to the study. The knowledge of others must be
easily accessible to all employees in order to effectively drive innovation in small and
medium-sized enterprises (SMEs). Employees may produce and make public their expertise
with Innolytics® idea management and innovation management software. Managers of
innovation can create their own categories of knowledge, such as.

Digital knowledge (web design, CMS systems, video editing)

Employees can also enter their knowledge via free text boxes.

The benefit: Technical resources can be identified quickly and simply during the innovation
process: Someone who secretly enjoys video editing, for example, might be a good example.
It is possible to prototype and test inventions with this feature. As a SCRUM-Master or in
Design Thinking, the Human Resources employee: Employees can turn to her as a coach for
creativity or is a teacher for other employees.

Innovation in small and medium-sized enterprises is dependent on transitory campaigns.

Workload fluctuations are a common occurrence in medium-sized enterprises. By the end of

the year, new structures must be turned over to clients, and shortly before Christmas, massive
quantities of picture books and photo gifts must be ordered.

The promotion of innovation is, therefore, a sensible strategy for small and medium-sized
firms, especially during periods of reduced workload. Here, temporary campaigns are an
option: for example, a company-wide idea competition in which employees come up with
future-oriented concepts within four to six weeks, which are then implemented in specialist
departments or working groups.

A few advantages to this method are as follows:

The corporation takes advantage of periods of low capacity utilization to propel itself
forward.

With high capacity utilization, an organization may concentrate on its day-to-day activities
while avoiding disregarding innovation management. Small and medium-sized businesses
find this to be a critical factor.

57
In spite of the fact that they aren't always being inspired by personnel of an innovation
management department, the employees' enthusiasm and involvement stay strong due to the
transient nature of the project.

Competitive benefits accrue from innovation in small and medium-sized firms.

Management of innovation is not just for major organizations, but it is also a very effective
instrument for advancing inventions in the marketplace. In medium-sized firms, innovation
management can effectively manage digital transformation and digital change. Innovation
management softwares can also help medium-sized businesses set up and implement an
effective innovation management system. SMEs benefit from digital assistance in managing
innovation.

References
Acheampong, G., & Hinson, R.E. 2019. Benefitting from alter resources: network diffusion
and SME survival. Journal of Small Business & Entrepreneurship, 31(2): 141-158.

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