Competitive Priorities and Innovation in SMEs: A Brazil Multi-case Study

Felipe Lara, Márcia Guimarães

Abstract


This study uses the qualitative approach and the multi-case study method to analyze the influence that the competitive advantages exerts in the innovation given the specific context of the research. Among the main results are the mains factors that generate innovative practices in the researched companies are quality, flexibility, delivery and cost, in this order of importance, as generators of innovation practices in the surveyed companies. The quality and flexibility were related to technological product and process innovations. In the non-technological innovations, quality influenced the marketing and organizational innovations. Flexibility generated marketing innovations and cost and delivery generated organizational innovation. The results of this research can make it easy to redirect future public innovation policies in small businesses. We discovered that innovation does not occur only through the acquisitions and heavy investments in technology. The strategic reorganization of the decision-taking processes can contribute to innovation.

Keywords


production strategies; competitive priorities; innovation; small businesses; metal-mechanic sector; Brazil

Full Text:

PDF [en]

References


Amato Neto, J. (2009). Gestão de Sistemas Locais de Produção e Inovação (Clusters/APLs), Atlas, São Paulo.

Azadegan, A., Napshin, S. and Oke, A. (2013). The influence of R&D partnerships on innovation in manufacturing firms: The moderating role of institutional attachment. International Journal of Operations and Production Management, 33(3), 248-274. DOI: 10.1108/01443571311300755.

Banerjee, S. K. (2000). Developing manufacturing management strategies: influence of technology and other issues. International Journal of Production Economics, 64(1-3), 79-90. DOI: 10.1016/s0925-5273(99)00046-8.

Becheikh, N., Landry, R. and Amara, N. (2006). Lessons from innovation empirical studies in the manufacturing sector: a systematic review of the literature from 1993-2003. Technovation, 26(5-6), 644–664. DOI: 10.1016/j.technovation.2005.06.016.

Burgess, T. F., Gules, H. K., Gupta, J. N. D. and Tekin, M. (1998). Competitive priorities, process innovations and time-based competition in the manufacturing sectors of industrialising economies: the case of Turkey. Benchmarking for Quality Management and Technology, 5(4), 304-316. DOI: 10.1108/14635779810244478.

Castellacci, F. (2008). Innovation and the competitiveness of industries: comparing the mainstream and the evolutionary approaches. Technological Forecasting and Social Change, 75(7), 984-1006. DOI: 10.1016/j.techfore.2007.09.002.

Chiesa, V., Manzini, R. and Tecilla, F. (2000). Selecting sourcing strategies for technological innovation: an empirical case study. International Journal of Operations and Production Management, 20(9), 1017-1037. DOI: 10.1108/01443570010339127

Choudhari, S. C., Adil, G. K. and Ananthakumar, U. (2012). Exploratory case studies on manufacturing decision areas in the job production system. International Journal of Operations and Production Management, 32(11), 1337-1361. DOI: 10.1108/01443571211274576.

Christiansen, T., Berry, W. L., Bruun, P. and Ward, P. (2003). A mapping of competitive priorities, manufacturing practices, and operational performance in groups of Danish manufacturing companies. International Journal of Operations and Production Management, 23(10), 1163-1183. DOI: 10.1108/01443570310496616.

Dangayach, G. and Deshmukh, S. (2000). Manufacturing strategy: experiences from select Indian organization. Journal of Manufacturing Systems, 19(2), 134-148. DOI: 10.1016/s0278-6125(00)80006-0.

Dangayach, G. and Deshmukh, S. (2006). An exploratory study of manufacturing strategy practices of machinery manufacturing companies in India. Omega, 34(3), 254-273. DOI: 10.1016/j.omega.2004.10.009.

Díaz-Garrido, E., Martín-Peña, M. L., and Sánchez-López, J. M. (2011). Competitive priorities in operations: Development of an indicator of strategic position. CIRP Journal of Manufacturing Science and Technology, 4(1), 118–125. DOI:10.1016/j.cirpj.2011.02.004.

Eisenhardt, K. M. (1989). Building theories from case study researches. Academy of Management Review, 14(4), 532-550. DOI: 10.5465/amr.1989.4308385.

Georgsdottir, A. S. and Getz, I. (2004). How flexibility facilitates innovation and ways to manage it in organizations. Creativity and Innovation Management, 13(3), 166-175. DOI: 10.1111/j.0963-1690.2004.00306.x.

Gibson, D. V. and Naquin, H. (2011). Investing in innovation to enable global competitiveness: the case of Portugal. Technological Forecasting and Social Change, 78(8), 1299-1309. DOI: 10.1016/j.techfore.2011.04.004.

Gröbler, A. and Grübner, A. (2006). An empirical model of the relationships between manufacturing capabilities. International Journal of Operations and Production Management, 26(5), 458-485. DOI: 10.1108/01443570610659865.

Gunduz, E. and Semercisz, F. (2012). The relation between competitive tension and strategic innovation. Procedia: Social and Behavioral Sciences, 58, 29-39. DOI: 10.1016/j.sbspro.2012.09.975.

Hayes, R. H. and Pisano, G. P. (1994). Beyond world-class: the new manufacturing strategy. Harvard Business Review, 72(10), 77-86.

Hayes, R. and Wheelwright, S. C. (1984). Restoring our competitive edge: competing through manufacturing, The Free Press, New York.

Hill, T. (1989). Manufacturing strategy, McGraw-Hill, London.

Kaminski, P. C., Oliveira, A. C. and Lopes, T. M. (2008). Knowledge transfer in product development processes: A case study in small and medium enterprises (SMEs) of the metal-mechanic sector from São Paulo, Brazil. Technovation, 28(1-2), 29–36. DOI: 10.1016/j.technovation.2007.07.001.

Kathuria, R. (2000). Competitive priorities and managerial performance: a taxonomy of small manufacturers. Journal of Operations Management, 18(6), 627–641. DOI: 10.1016/s0272-6963(00)00042-5.

Martin-Peña, M. L. and Díaz-Garrido, E. (2008). A taxonomy of manufacturing strategies in Spanish companies. International Journal of Operations and Production Management, 28(5), 455-477. DOI: 10.1108/01443570810867204.

Miltenburg, J. (2008). Setting manufacturing strategy for a factory-within-a-factory. International Journal of Production Economics, 113(1), 307-323. DOI: 10.1016/j.ijpe.2007.09.001.

Mintzberg, H., Ahlstrand, B. and Lampel, J. (1998). Strategy safari: a guided tour through the wilds of strategic management, The Free Press, New York.

OECD (2005). Oslo Manual: Proposed guidelines for collecting and interpreting technological innovation data, 3 ed., Paris.

Oke, A. (2005). A framework for analysing manufacturing flexibility. International Journal of Operations and Production Management, 25(10), 973-996. DOI: 10.1108/01443570510619482.

Ota, M., Hazama, Y. and Samson, D. (2013). Japanese innovation processes. International Journal of Operations and Production Management, 33(3), 275-295. DOI: 10.1108/01443571311300773.

Peng, D. X., Schroeder, R. G. and Shah, R. (2011). Competitive priorities, plant improvement and innovation capabilities, and operational performance. International Journal of Operations and Production Management, 31(5), 484-510. DOI: 10.1108/01443571111126292.

Raymond, L.; St-Pierre, J. (2010). R&D as a determinant of innovation in manufacturing SMEs: an attempt at empirical clarification. Technovation, 30(1), 48-56. DOI: 10.1016/j.technovation.2009.05.005.

Rusjan, B. (2005). Model for manufacturing strategic decision making. International Journal of Operations and Production Management, 25(8), 740-761. DOI: 10.1108/01443570510608583.

SEBRAE (2011). Taxa de sobrevivência das empresas no Brasil, SEBRAE, Rio de Janeiro.

Skilton, P. F. and Dooley, K. (2002). Technological knowledge maturity, innovation and productivity. International Journal of Operations and Production Management, 22(8), 887-901. DOI: 10.1108/01443570210436190.

Skinner, W. (1969). Manufacturing: the missing link in corporate strategy. Harvard Business Review, 47(3), 136–145.

Theodorou, P. and Florou, G. (2008). Manufacturing strategies and financial performance - the effect of advanced information technology: CAD/CAM systems. Omega, 36(1), 107-121. DOI: 10.1016/j.omega.2005.10.005.

Vachon, S.; Halley, A. and Beaulieu, M. (2009). Aligning competitive priorities in the supply chain: the role of interactions with suppliers. International Journal of Operations and Production Management, 29(4), 322-344. DOI: 10.1108/01443570910945800.

Voss, C. A. (1995). Alternative paradigms for manufacturing strategy. International Journal of Operations and Production Management, 15(4), 5-16. DOI: 10.1108/01443579510083587.

Voss, C., Tsikriktsis, N., Frohlich, M. (2002). Case research in operations management. International Journal Of Operations and Production Management, 22(2), 195-219. DOI: 10.1108/01443570210414329.

Yin, R. (2003). Case study research: design and methods. Sage Publications, California.

Ward, P. and Duray, R. (2000). Manufacturing strategy in context: environment, competitive strategy and manufacturing strategy. Journal of Operations Management, 18, 123-138.

Weerawardena, J. and Mavondo, F. T. (2011). Capabilities, innovation and competitive advantage. Industrial Marketing Management, 40(8), 1220-1223. DOI: 10.1016/j.indmarman.2011.10.012.

Wheelwright, S. C. (1984). Manufacturing strategy: defining the missing link. Strategic Management Journal, 5(1), 77-91. DOI: 10.1002/smj.4250050106.

Wheelwright, S. C.; Bowen, H. K. (1996). The challenge of manufacturing advantage. Production and Operations Management, 5(1), 59-77. DOI: 10.1111/j.1937-5956.1996.tb00385.x.




DOI: http://dx.doi.org/10.4067/S0718-27242014000300004



Copyright (c)



2017 © Universidad Alberto Hurtado - Facultad de Economía y Negocios. 
Erasmo Escala 1835 - Santiago, Chile.
Economic Analysis Review | Observatorio Económico | Gestión y Tendencias 

Journal Supported by Chimera Innova Group