Assessing the innovation capability of small- and medium-sized enterprises using a non-parametric and integrative approach
ISSN: 0025-1747
Article publication date: 21 February 2018
Issue publication date: 4 June 2018
Abstract
Purpose
The aftermath of the recent financial crisis has shown that the ability to innovate is a vital management skill and that the methodologies used to evaluate innovation capability within small- and medium-sized enterprises (SMEs) should be as holistic and integrative as possible. The purpose of this paper is to address this issue through the combined use of cognitive mapping and the analytic hierarchy process (AHP).
Design/methodology/approach
Cognitive mapping and multiple criteria decision analysis have proved over the years to be effective in handling a wide range of complex decision problems. Following a socio-technical approach, a non-parametric method of evaluating SME innovation capability – based on the results of group meetings with a panel of information technology entrepreneurs and SME chief executive officers – was created, tested and validated.
Findings
The methodological processes adopted in this study provide promising results for decision makers seeking to identify the most innovative SMEs. Furthermore, the sensitivity analyses carried out also supported the findings.
Research limitations/implications
This study confirms the usefulness of integrating cognitive mapping and the AHP to facilitate evaluations of SME innovation capability. However, due to the process-oriented nature of the research, extrapolations without proper adjustments are not recommended.
Practical implications
The panel members who participated in this study consider the proposal extremely versatile and see great potential for further applications in the measurement of SME innovation capability.
Originality/value
The combined use of cognitive mapping and the AHP offers a holistic and well-informed perspective on the issue in question. The authors know of no prior work reporting this approach in the same research context.
Keywords
Acknowledgements
Records of the expert panel meetings, including pictures, software output and non-confidential information of the study, can be obtained from the corresponding author upon request. The authors gratefully acknowledge the superb contribution and infinite willingness of the panel members: António Castela, Filipe Gaspar, João Tiago Aguiar, Vasco Lemos and Vítor Gonçalves. Facility support from the ISCTE Business School, University Institute of Lisbon, Portugal is also acknowledged.
Citation
Castela, B.M.S., Ferreira, F.A.F., Ferreira, J.J.M. and Marques, C.S.E. (2018), "Assessing the innovation capability of small- and medium-sized enterprises using a non-parametric and integrative approach", Management Decision, Vol. 56 No. 6, pp. 1365-1383. https://doi.org/10.1108/MD-02-2017-0156
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited