Efficiency-centered, innovation-enabling business models of high tech SMEs: Evidence from Hong Kong

Mark Loon () and Roy Chik ()
Additional contact information
Mark Loon: Bath Spa University
Roy Chik: CAS Logistics Limited, Hong Kong Science & Technology Park

Asia Pacific Journal of Management, 2019, vol. 36, issue 1, No 5, 87-111

Abstract: Abstract High-technology small and medium-sized enterprises (SMEs) are compelled to innovate to differentiate themselves from their competitors but at the same time be efficient, as they do not have economies of scale enjoyed by larger organizations. This qualitative study explores this paradoxical challenge faced by Hong Kong SMEs in designing their business model to strike such a balance. In doing so, it investigates the competencies of these firms in technology management and their innovation practices. It is found that third-party technologies that subscribe to international standards play a prominent role in the SME’s technology repertoire, as they are keen to leverage upon the effects of network externalities and other positive spillover effects. Although the firms’ business models enable product innovation, they also need to take efficiency into account to ensure that marketing and customer-intelligence are swiftly incorporated into their technology management and product development processes resulting in cyclic, incremental innovations. Our findings of efficiency-centered, innovation-enabling business models provide a more nuanced view of business model design in that efficiency and innovation need not be mutually exclusive. Four modalities of such business models are also identified: Focused, complementary, integrated innovation, and e-commerce-supported. These designs play an important role in enhancing product quality and performance, reducing time to market, developing new markets, and improving customer relationship and satisfaction.

Keywords: Business models; Efficiency-centered; Novelty-centered; Technology management; Innovation; Ambidexterity (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://link.springer.com/10.1007/s10490-017-9558-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:asiapa:v:36:y:2019:i:1:d:10.1007_s10490-017-9558-4

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/10490/PS2

DOI: 10.1007/s10490-017-9558-4

Access Statistics for this article

Asia Pacific Journal of Management is currently edited by Jane Lu

More articles in Asia Pacific Journal of Management from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().