Innovation and New Product Development in smes: An Investigation of the Scottish Food Industry




НазваниеInnovation and New Product Development in smes: An Investigation of the Scottish Food Industry
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Acknowledgements



I express my deep sense of gratitude to my supervisors, Dr. Janice McMillan, Professor Ron Masson, Mrs Susan Laing and Mr. Aidan Craig for their help, advice and steadfast support throughout this research.

Dr. Janice McMillan took over the stewardship of my supervisory team following Professor Masson’s retirement. In a very short period she not only acquainted her well with the work that had progressed in her absence for over three years but also made pivotal contribution to writing up of the amendments to my thesis that were advised by the examiners.

Professor Ron Masson’s commitment to steer this work unwaveringly in the right direction, his scholarship and his ability to motivate and inspire played crucial role at every stage of this research. I had occasions to meet him more as he also headed the Operations Management Group in which I had a teaching role and would always cherish Professor Masson’s qualities as an exceptional human being.

Mrs Susan Laing, despite being in a much occupied role as Director of the Entrepreneurship Centre, made it a point to remain present at many of the interviews that were to form the backbone of this investigation. Her presence and leadership during the interviews helped immensely by extracting information that was to prove crucial in identifying the underlying innovation process in Scottish SMEs. She and Mr Aidan Craig were pivotal in arranging the validation session of this work.

Mr Aidan Craig brought to this research a vast first-hand experience of the Scottish food industry. He often challenged my interpretation of the evidence that this investigation generated in light of his intimate knowledge of the industry. That the findings of this research echoed so true during their validation by the Scottish food industry veterans is due largely to him. Mr. Craig steered the validation discussion skilfully, ensured that views of all present were taken and yet kept us all so focussed that it concluded at the stroke of its scheduled end.

The author is obliged to the Managing Director’s of eight Scottish food SMEs who allowed me to investigate their enterprises, the owners and executives of these companies who unselfishly, unreservedly and at length, revealed to me the details of innovation and new product development in their organisations in the spirit of sharing knowledge to create new knowledge. Without the participation of these, here anonymous, stars of the Scottish food innovation, this research would not have taken off let alone concluded.

Also acknowledged thankfully are the six Scottish food entrepreneurs Mr. Peter Ford, Mr. Mark Laing, Ms. Jo Macsween, Mr. Tony Stone, Ms. Lesley McVey and Mr. Robin Pollok who formed the validation panel, attended the validation session at a very short notice, enriched author’s understanding of the innovation process in the Scottish food industry and provided this work the authenticity needed for its successful conclusion.

Dr. Fiona Peterson of Oxford Psychology Group is acknowledged gratefully for sending me her innovative personality questionnaire and for permitting me to use it in this research, Professor Jonathan Michie for sending me his unpublished paper “Cooperation and Innovation: Evidence from the Community Innovation Survey”, co-authored with Marion Frenz and Christine Oughton and for his permission to cite it and Mr. Robin Pollok, a director of Food Initiative Ltd for pre-testing both the paper and on-line versions of the survey questionnaire.





Table of contents


Vijay Vyas 3

To my wife Renuka 5

Abstract 6

Acknowledgements 8

Table of contents 10

1Introduction 12

1.1Background and motivation 12

1.2Objective 13

1.3Organisation of thesis 13

2Literature review 18

2.1Innovation and business performance 18

2.2Definition of innovation 18

2.3National systems of innovation perspective 21

2.4Taxonomy of innovation 22

2.4.1Technical versus organisational innovation 22

2.4.2Product versus process innovation 23

2.4.3Radical versus incremental innovation 23

2.4.4New to the firm versus new to the market innovations 23

2.5Determinants of innovation: Internal characteristics of enterprise 23

2.5.1Internal strategic factors 24

2.5.2Internal non-strategic factors 30

2.6Determinants of innovation: External characteristics 33

2.6.1External industry specific factors 34

2.6.2External region specific factors 35

2.7The process perspective to innovation in SMEs 37

2.8Management of innovation 39

2.9Definition, taxonomy and perspectives of innovation: A Critique 40

2.9.1Definition: The innovation-span 40

2.9.2Taxonomy 42

2.9.3Innovation perspective: Process versus determinants 43

2.10Conclusions 43

2.11 The research questions 45

3Methodology 46

3.1Background 46

3.2The method 46

3.2.1What is a case study 47

3.2.2Why case study research 48

3.2.3Limitations of case study research 49

3.2.4How the case studies were conducted in this research 50

3.3The case study companies 56

3.4The case study research process 58

3.5Data collection 60

3.6Data analysis 63

3.7Validation of findings 64

3.8Analysis of innovation potential indicator questionnaire data 65

3.8.1Measurement of motivation to change 65

3.8.2Measurement of challenging behaviour 66

3.8.3Measurement of adaptation 66

3.8.4Measurement of consistency of work style 67

3.8.5Measurement of social desirability 67

3.9A critique of the case study research method 69

3.10Triangulation survey 71

4Context of Study I 72

The Scottish Food and Drinks Industry: An Overview 72

4.1Introduction 72

4.2Employment 72

4.3Businesses 73

4.4Exports 73

4.5Retailing 73

4.6Foodservice 74

4.7Recent Trends 74

4.8Conclusions 76

5Context of Study II 78

Business Innovation in Scotland 78

5.1Introduction 78

5.2Innovation vision of the Scottish Government 78

5.3R&D in Scotland 79

5.4R&D and innovation in the UK regions 80

5.5Innovation performance of businesses: Scotland versus UK 80

5.6R&D and innovation in Scotland 82

5.7Commercialisation of research by higher education institutes 83

5.8Small business innovation in Scotland 84

5.9European innovation scoreboard 85

5.10 The previous research 86

5.11Conclusions 87

6Results 89

6.1Internal strategic determinants of innovation 89

6.1.1Market orientation: Within-case analysis 89

6.1.2Market orientation: Cross-case analysis 113

6.1.3Learning Processes: Within case analysis 113

6.1.4Learning processes: Cross case analysis 132

6.1.5Technology policy: Within case analysis 133

6.1.6Technology Policy: Cross case analysis 141

6.1.7Cooperation and Networking: Within case analysis 143

6.1.8Cooperation and Networking: Cross case analysis 148

6.1.9Financial resources, human resources and managerial efficiency: Within-case analysis 148

6.2Internal non-strategic determinants of innovation 157

6.2.1Analysis of age 157

6.2.2Analysis of size 158

6.3The innovation process in the Scottish food SMEs: A summary 158

6.4Chief components of the innovation process 161

6.4.1The personality factor 161

6.4.2Idea generation 163

6.4.3Idea validation 166

6.4.4Idea implementation 170

6.4.5Examples of innovation 172

6.4.6What makes them innovative 174

6.4.7How the grocery multiples are driving innovation 177

6.4.8Types of innovation 180

6.4.9Healthy foods 182

6.4.10Packaging 185

6.4.11Pricing strategy 186

6.4.12Quality 187

6.5Key concepts emerging from the case studies 188

7Validation 189

8Survey 197

8.1Introduction 197

8.2Survey Methodology 198

8.2.1The survey questionnaire 198

8.2.2The survey process 201

8.3Survey findings 203

8.3.1Analysis of general information 203

8.3.2Analysis of information on innovation 205

8.3.3Networking for innovation 208

8.3.4The survey data 208

8.3.5Testing of hypotheses 210

8.3.6Segregated data analysis 214

8.3.7Influence of size 217

8.3.8Influence of age 218

8.3.9Survey limitations 219

8.4Summary of survey results 219

9Conclusions 222

9.1Background 222

9.2Conceptual underpinnings of analysis: Definition of innovation 223

9.3Taxonomy of innovation 225

9.4Determinants of innovation 228

9.4.1Internal strategic factors 228

9.4.2Internal non-strategic determinants 238

9.5Other explanations 240

9.6Summing-up: Factors affecting innovation and new product development in Scottish enterprises 242

9.7The underlying process of innovation in the case study companies 243

9.8Contributions to knowledge 249

10Recommendations 250

10.1 For non-innovative food companies 250

10.2For the Scottish Government 251

10.3For Future research 251

11References 252

12Appendices 260

12.1Semi-structured questionnaire 260

12.2 Letter to the managing directors of innovative food companies 261

12.3 Innovative personality questionnaire 263

12.4Survey cover letter 263

12.5Survey questionnaire 264

12.6Published work 265



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