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eKonferencije.com: Networking potential for innovation in SME organizations: The case of the Czech Republic

Networking potential for innovation in SME organizations: The case of the Czech Republic

1. Jarmila Sebestova

Entrepreneurship under non-stable and risky environment, brings to entrepreneurs new dimension of skill development – not only high level of professional skills, but multipart model of basic managerial skills required for decision-making and risk taking in innovative entrepreneurship as whole. Traditional models of innovative behaviour cover only few variables like structure of organization, climate, processes and leadership without dynamic points such as behaviour of elements (Damapour, 1991, Lehman, 2002, Burke and Litwin, 1992). Small businesses offer their new services and products on the local market, inspired by original global product, so they mostly offer cheaper, home-made imitation of some innovation activity (Pichlak, 2008).
The purpose of the paper is to examine how important role play strategy preferences as quality improvement, human resource care and others in the area of openness for cooperation in innovation and find the answer to the following questions theoretically defined (Kimberley, Cook, 2008): (1) Which factors support innovative environment in the organization? (2) Which kind of organizational values must be used to adopt innovations, under risk and support future cooperation? According to the review of literature that was carried out in advance of any primary research being undertaken, nobody has yet tried to combine this area of values to compare.
The questionnaire survey was conducted with owners and managers of small and medium size businesses in the Czech Republic (under 250 employees) operating between the years 2009-2011. A detailed analysis of the data is still in process but early indications suggest the following results: (1) Corresponding to this to suggest recommendations which could be used in the future as a metrics for innovative spirit evaluation. (2) Finally, we believe, that SMEs should be more innovative and competitive when they cooperate, so the entrepreneurs, who support external cooperation, reach more longevity in their products. According to Pichlak (2008) and Ćwik (2007), there are in the paper, specific tasks to solve: (1) What behaviour will support innovative and cooperative behaviour of small business?
Finally, all factors in area of innovative and sustainable business were taken from previous official national research results (CSO, 2012) and previous studies made by Pawliczek and Piszczur (2012) or Rylkova and Antonova (2012). Seven questions were asked in order to make a judgment within the extended Likert scale of 0 – 10, with 0 as zero priority and 10 the highest priority. In relation to this part of questionnaire we set up two main quantitative-based hypotheses to be evaluated in the case of the innovative spirit in the whole SME sector.
• H1: Enterprise, which was in the period 2009-2011 in decline business phase (without any innovation potential or cooperation vision), will mainly evaluate their priorities of business in grades of 5-7 (average and higher rating) as a priority to survive in the market in most areas.
• H2: As a final connection to the innovative approach for businesses, if a company invests more than 5%-10% of their turnover toward innovative activities, will have high priorities in external cooperation for innovation.

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Datum: 19.11.2013.

REDETE 2014 - Researching Economic Development and Entrepreneurship in Transition Economies


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