Fostering Innovative SMEs in a Developing Country: The ALI Program Experience

Bruno Francisco Diniz Marinho () and Isotilia Costa Melo
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Bruno Francisco Diniz Marinho: Luiz de Queiroz College of Agriculture, University of São Paulo (USP), Piracicaba 13418-445, SP, Brazil
Isotilia Costa Melo: Escuela de Ingeniería de Coquimbo (EIC), Universidad Católica del Norte (UCN), Coquimbo 1781421, Chile

Sustainability, 2022, vol. 14, issue 20, 1-16

Abstract: Small and medium enterprises (SMEs) play an essential economic role through income and employment generation as well as reducing inequalities. In this regard, continuous innovation is a pillar for guaranteeing SMEs’ survival worldwide. In Brazil, the ALI Program (Portuguese acronym for Local Innovation Agent) trains groups of SMEs to implement a continuous innovation process based on agile methodologies. This paper applied focus group methodology to investigate whether, after participating in the program, SMEs practice some innovation processes in their business and the difficulties perceived by entrepreneurs in incorporating innovation processes into their ventures. Based on the extant literature and on the focus group, it was observed that SMEs see innovation as a risk, fear innovating because of tradition, family, and/or generational context, and do not see innovation as a process suitable to be systematized with agile tools. In addition, factors such as the age of the SMEs’ leaders, the age of the SMEs, the gender of the SMEs’ leaders, and the nature of the SMEs (family business or not) may affect their openness to innovation. Recommendations are stated for practitioners (such as ALIs) to improve their training quality, policymakers to improve and create similar programs, and researchers interested in future research directions.

Keywords: small and medium-sized enterprises (SMEs); micro and small businesses (MSBs); Brazilian support service for micro and small enterprises (SEBRAE); local innovation agent ALI program; organizational agility; entrepreneurship; lean startup; agile methods; agile tools (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:20:p:13344-:d:944614

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