This document summarizes research into barriers to collaborative innovation among small and medium enterprises (SMEs) in two sectors: metal forming and casting/foundry. The researcher conducted 25 interviews with SMEs in these sectors. Key findings include: 1) SMEs define innovation based on their supply chain position and innovate primarily to remain competitive; 2) in-house R&D is the most common innovation practice and inter-firm collaboration is currently non-existent; 3) lack of knowledge about other firms' capabilities hinders collaboration; and 4) trust is a major factor in decisions to collaborate. The researcher concludes more knowledge is needed on capabilities and trust-building to enable SME collaboration. Next steps proposed include

1. Temitope.Akinremi@wbs.ac.uk
Warwick Business School
University of Warwick
Barriers to Collaborative
Innovation in SMEs
By
Temitope Akinremi
Stephen Roper

2. Introduction
Who What Where
When Why
• UK
• 2 Case-Study Sectors
• Metal Forming
• Casting/Foundry
Introduction Background Questions Methodology Key Findings Conclusion Next Step

3. • Innovation relates positively to competitiveness, productivity and
performance (Gunday et al. 2011)
• Disparity between large firms and SMEs in innovation adoption (Wei and
Yuzhen 2013)
• Open Innovation (OI); where innovation is shared and exchanged across
individual firms (Chesbrough 2003 and Reed et al. 2012)
• Innovation Collaboration; Potential missed opportunity for SMEs
• Informational Market Failures; Trust & Knowledge about Capabilities (Hewitt-
Dundas and Roper 2018)
Background
Introduction Background Questions Methodology Key Findings Conclusion Next Step

4. Research Questions
Introduction Background Questions Methodology Key Findings Conclusion Next Step

5. Data Analysis
• Transcribed data was analyzed via Nvivo
software
• Latent and Manifest meaning
• Generation of codes, themes and sub-
themes
Methodology
Methodology
• Qualitative
Research Technique
• Purposive Sampling
• Conducted 25 semi-
structured
interviews
Introduction Background Questions Methodology Key Findings Conclusion Next Step

6. RQ1
• Innovation definition reflected in
organisation’s supply chain position
• Remaining Competitive; the overriding
motivation for innovation
• In-House R&D is the single most
common innovation practice
• Inter-firm collaboration is currently
non-existent
Key Findings
Introduction Background Questions Methodology Key Findings Conclusion Next Step

7. RQ2
• Lack of knowledge of capabilities; a
hindrance to innovation collaboration
• Information Sources
• What to Know
Key Findings
Introduction Background Questions Methodology Key Findings Conclusion Next Step

8. RQ3
• Trust is a key determining factor in the
decision to collaborate
• Assessing Trustworthiness
Key Findings
Introduction Background Questions Methodology Key Findings Conclusion Next Step

9. Conclusion
• Innovation definition reflected in organisation’s supply chain position
• Remaining competitive emerged as the overriding motivation for innovation across
SMEs studied
• In-House R&D is the single most common innovation practice across analyzed firms
• Inter-firm collaboration is currently non-existent
• Lack of knowledge of capabilities of firms across the sectors is a hindrance to
collaborations
• Suppliers and trade associations are important sources of information on capabilities
• Trust is essentially important in the decision to collaborate.
Introduction Background Questions Methodology Key Findings Conclusion Next Step

10. Next Steps
• Quantitative Study Based on Constructs from Qualitative Study
• Survey of case-study sectors
• Follow a new line of inquiry emanating from analysed data;
• Harnessing collaboration between firms and Research centres/Universities
(One-on-One Collaboration)
• Industry Project led innovation collaboration (Multi-Firm Collaboration)
Introduction Background Questions Methodology Key Findings Conclusion Next Step

11. Thank you