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Barriers to innovation in service SMEs: Evidence from MexicoMaldonado-Guzman, Gonzalo; Garza-Reyes, Jose Arturo; Pinzon-Castro, Sandra Yesenia; Kumar, Vikas; The University of Derby (Emerald, 2017)Purpose – Specific research related to the study of innovation barriers in service SMEs in the Latin American region is limited. This study thus investigates the effects that external environmental, financial and human barriers have on innovation activities, particularly, within the context of Mexican service SMEs. Design/methodology/approach – Three hypotheses were formulated and tested using structural equation modelling (SEM). Data were collected through an instrument that was developed based on relevant constructs adapted from the literature. The instrument was validated using Confirmatory Factor Analysis, Cronbach’s alpha test and Composite Reliability Index to ensure the reliability of the theoretical model. The instrument was distributed among service SMEs in the Aguascalientes state of Mexico, from were 308 valid responses were obtained. Findings – In general, the results indicate that all of the three barriers investigated (i.e. external environmental, financial and human) hinder innovation in service SMEs, with the external environmental barrier being the most significant of the three. Practical implications – The findings of this research can inform managers of service SMEs and policy makers when formulating and implementing strategies to reduce innovation barriers. Originality/value – Evidence suggests that specific research related to the study of innovation barriers in service SMEs in the Latin American region is limited. This paper fills this research gap by expanding the limited body of knowledge in this field and providing further evidence on this phenomenon. The study also enables the distinctive characteristics of innovation barriers to be understood within a particular context, expanding in this way the body of knowledge on this field.
Innovation and growth in family-owned Mexican SMEs.Maldonado-Guzman, Gonzalo; Garza-Reyes, Jose Arturo; Pinzon-Castro, Sandra Yesenia; Mejia-Trejo, Juan; Kumar, Vikas; Nadeem, Simon Peter; Autonomous University of Aguascalientes; University of Derby; University of Guadalajara; University of West England (IEOM Society, 2018-03)This paper studies the relationship between innovation and the level of growth in family-owned small and medium-sized enterprises (SMEs), this is done within the context of Mexico. The conceptual framework of analysis is based on the hypothesis that innovation in products, processes and management systems contribute to the achievement of growth in family-owned SMEs. To test this hypothesis, a model of structural equation of second order was developed with data collected from 206 family-owned SMEs located in the state of Aguascalientes, Mexico. The empirical evidence provided by the analysis supports the hypothesis, showing that family-owned SMEs that increase their innovation activities will also significantly increase their opportunities for growth. This finding can be used to inform the business growth strategies formulated by the owners, or managers, of family-owned SEMs. These also indicate policy-makers that by designing effective policies and providing incentives to support innovation in family-owned SMEs, the government would not only contribute to the growth of these organisations but also to the growth of their regions and countries. Despite the importance of innovation and family-owned SMEs, evidence suggests that studies focused on investigating innovation in this type of organisations are very limited. This paper fills this gap by providing a refined understanding of the relationship between innovation and growth in family-owned SMEs.
Innovation capabilities and performance: Are they truly linked in SMEs?Maldonado-Guzman, Gonzalo; Garza-Reyes, Jose Arturo; Pinzon-Castro, Sandra Yesenia; Kumar, Vikas; Universidad Autónoma de Aguascalientes; University of Derby; University of the West of England (Emerald, 2018-07)Purpose In an environment where business uncertainty is the norm, developing innovation capability in an organisation is increasingly important. The purpose of this paper is to investigate the effects that innovation capabilities have on the business performance of small- and medium-sized enterprises (SMEs) within the context of a regional developing and emerging economy of Mexico, in this case, Aguascalientes. Design/methodology/approach The approach of this study is quantitative. Four research hypotheses were formulated and tested using structural equation modelling (SEM). Data were collected through a questionnaire survey responded by 308 SMEs located in the Aguascalientes state of Mexico. Findings The results obtained show that innovation in products, processes, marketing and management has a positive and significant effect on the business return of Mexican SMEs. Originality/value The paper complements the limited body of knowledge currently existent in the SMEs innovation literature, particularly when compared to that of large organisations. Similar works in other settings have provided mixed results in regards to the effects that innovation capabilities have on the business performance of SMEs. Thus, this paper offers a refined understanding and validation of the relationship between innovation capabilities and business performance, especially within the context of SMEs, and insights into some of the innovation aspects that managers may consider when formulating the strategies of their organisations. Finally, it enables such relationship to be understood within a particular situation, contributing in this manner to expand the body of knowledge in the innovation field.