Knowledge strategy and business model conditions for sustainable growth of SMEs
Journal of Science and Technology Policy Management
ISSN: 2053-4620
Article publication date: 5 October 2015
Abstract
Purpose
The purpose of this study is to figure out the factors for sustainable growth of small- and medium-sized enterprises (SMEs).
Design/methodology/approach
In all, 27 SMEs in the area of IT (Information Technology) in Korea were analysed through interview method basically.
Findings
It is found that sustainable development of SMEs requires two kinds of open innovation which are knowledge strategy and business model. According to developing process, SMEs change their open innovation strategy in knowledge strategy and business model. The highest growth limit of SMEs depends on open innovation in knowledge strategy and business model in sequence from closed innovation in both, through open innovation in both, to open innovation in knowledge strategy and closed innovation in business model and to closed innovation in knowledge strategy and open innovation in business model.
Research limitations/implications
First, the present study was conducted with IT sector SMEs in Korea. It is true that the IT sector is one of the most rapidly changing industrial sectors and is one of representative business types of SMEs in which manufacturing and service industries coexist and diverse sizes of SMEs exist (Malerba, 2002). Second, the present study relies on case study methods. It is true that case study is a method that gives excellent qualitative analysis in firm studies (Yin, 2008).
Practical implications
SMEs cannot survive if they do not accept open innovation in knowledge strategy and business model. SMEs that show absolute limitations in resources and manpower should absolutely implement open innovation strategies to secure more diverse resources from markets and external knowledge bases rather than preparing all resources and capabilities by themselves (Van de Vrande et al., 2009; Yun and Mohan, 2012a, 2012b).
Social implications
SMEs should bear in mind the two different levels of open innovation, such as knowledge strategies and business models (Chesbrough, 2007; Chesbrough and Appleyard, 2007).
Originality/value
SMEs should not confuse between temporally sustainable development and infinite sustainable development. Firms that take closed innovation strategies in both knowledge strategies and business models can also grow for some time. However, because of the deepening of knowledge-based economy, not only the amount of knowledge existing in the world and the speed of knowledge distribution increased but also the customers’ demands and expectations have been observed to increase in the market immediately through social networking sites (SNS), etc. (Yun and Ryu, 2012).
Keywords
Acknowledgements
This work was supported by the DGIST R & D program of the Ministry of Science, ICT and Future Planning of Korea.
Citation
Yun, J.J., Jung, W. and Yang, J. (2015), "Knowledge strategy and business model conditions for sustainable growth of SMEs", Journal of Science and Technology Policy Management, Vol. 6 No. 3, pp. 246-262. https://doi.org/10.1108/JSTPM-01-2015-0002
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited