Competitive Strategies for Small and Medium Enterprises: Increasing Crisis Resilience, Agility and Innovation in Turbulent Times

282 Pages·2016·5.07 MB·English

by  Klaus North

Klaus North · Gregorio Varvakis Editors
Competitive
Strategies for
Small and Medium
Enterprises
Increasing Crisis Resilience, Agility and
Innovation in Turbulent Times
Competitive Strategies for Small and Medium
Enterprises
ThiSisaFMBlankPage
Klaus North (cid:129) Gregorio Varvakis
Editors
Competitive Strategies for
Small and Medium
Enterprises
Increasing Crisis Resilience, Agility and
Innovation in Turbulent Times
Editors
KlausNorth GregorioVarvakis
WiesbadenBusinessSchool Dept.ofEngineeringandKnowledgeMgmt.
RheinMainUniversityofApplied UniversidadeFederaldeSantaCatarina
Sciences Trindade,Florian(cid:1)opolis-SC
Darmstadt Brazil
Germany
ISBN978-3-319-27301-3 ISBN978-3-319-27303-7 (eBook)
DOI10.1007/978-3-319-27303-7
LibraryofCongressControlNumber:2015957957
SpringerChamHeidelbergNewYorkDordrechtLondon
©SpringerInternationalPublishingSwitzerland2016
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Preface
“It is not the strongest of the species that survives, nor the most intelligent that
survives.Itistheonethatisthemostadaptabletochange.”Thisquotebyscientist
Charles Darwin goes back more than 200 years, yet it is more relevant now than
ever.Individualsaswellascompaniesworldwideincreasinglyhavetolearnhowto
copewithambiguitiesandafastchangingeconomicandsocialenvironment.
Smallandmediumenterprisesarethemostimportantsourcesofjobcreationand
local development in increasingly knowledge-based economies. As turbulence in
globalizedeconomiesexpands,SMEswillhavetolearntosustaincompetitiveness
inthisnewkindofenvironmentbydevelopingtheir“dynamiccapabilities.”Based
onthefindingsofa4-yearEuropeanandLatinAmericanresearchproject,thisbook
provides a theoretical framework, practical instruments, and case studies of how
SMEs in differing economic, social, and cultural contexts can develop crisis
resilience, increase agility, innovate, and thus successfully compete in turbulent
times.
Before the crisis years, around 2008/2009, SMEs in Europe relied on fairly
stable economic conditions and long-term relationships; however, they are now
faced with stagnating markets and a “roller coaster economy.” In the turbulent
economic and social environment of Latin America (including different ethnic
characteristics,inflation,rapidlychangingregulations,socialinequality,fastchang-
ing economic environments etc.), SMEs have survived by adopting flexible strat-
egies of short-term resource exploitation, resulting in low productivity and low
degreesofinternationalization.
Consequently,SMEswillhavetolearntobecomeandremaincompetitiveinthis
new kind of economic environment. “What is a successful management model
for SMEs to compete in turbulent environments?” is the overriding research
questionaddressedinthisbook. Based onempirical data,case studies,andaction
research findings, the authors argue that combining European innovation and
organizational learning models with Latin American survival strategies can con-
tributetosustaincompetivenessintheseturbulentsettings.
v
vi Preface
These contextual differences provided a unique mutual comparative research
and learning opportunity, in which differences and complementarities contributed
to the development of a “Dynamic SME” framework supported by tested instru-
mentsandmethodologiestosustaincompetitivenessinturbulenttimes.
Thisbookhighlightstheneedtodifferentiatebetweenmanagementofbusiness
processes in “normal” situations and in “turbulent” situations. It is not just an
adaptation of the normal business model for a turbulent environment, it is a
different concept which helps managers to develop a cognitive map for this
situation. This can only be achieved if there is a better focus on the managers of
SMEs.Thispublicationhelpstoopenthe“blackbox”ofSMEs.
ThecombinationofasoundtheoreticalframeworkforSMEdevelopmentalong
with practical instruments and case studies makes this book a unique read for
researchers, SME management courses, SME policy makers, practitioners from
SME support institutions, owners/managers of SMEs as well as trainers, consul-
tants,andcoaches.Thebookissupportedbyanextensivewebsite(www.dynamic-
sme.org)containingfurtherpublicationsandaYouTubechannel“DynamicSME”
comprisingvideosoninstrumentsandSMEcases.
Theresearchleading tothese resultswouldnothave been possiblewithoutthe
funding from the European Union Seventh Framework Programme under grant
agreement n(cid:1) PIRSES-GA-2010-268665 (Project “Dynamic SME”). The project
strengthened research partnerships through staff exchanges and developed a joint
learning and co-development process of five research teams from the following
universities:
(cid:129) RheinMain University of Applied Sciences, Wiesbaden Business School, Ger-
many(Projectcoordinator)
(cid:129) UniversidadAut(cid:1)onomadeMadrid,BusinessManagementInstituteIADE,Spain
(cid:129) UniversidadedoMinho,DepartmentofManagementandDepartmentofInfor-
mationSystems,Portugal
(cid:129) Universidade Federal de Santa Catarina, Knowledge Engineering Department
(EGC),Brazil
(cid:129) Universidad Nacional de Rosario, Industrial Engineering School and Depart-
ment(IES&D),Argentina
Furthermore, the project led to a research network “Dynamic SME” (http://
www.dynamic-sme.org/es1/red-dynamic-sme) which continues to develop joint
research,training,andfurtherSMEsupportactivities.
Our thanks go to the researchers who have actively contributed to furthering
insightsofwhatconstitutesa“DynamicSME”andtothecooperatingenterprises,
whoopenlydiscussedproblemsandpractices.Wearealsogratefultoinstitutional
support, in particular by SEBRAE Santa Catarina (Brazil) and Asociaci(cid:1)on de
Desarrollo de Rosario (ADERR) and their willingness to experiment with the
“Learningtogrow”methodology,yieldingexcellentresults.
The many videos produced at the Distance Learning Unit of Universidade
Federal de Santa Catarina would not have been possible without the dedicated
supportoftheLED/EGC-Team.
Preface vii
Finally, we thank in particular Christopher Drodge from Wiesbaden Business
School for language editing and proofreading of the book chapters and Dorzeli
Salete Trzeciak from the EGC Department at Universidade Federal de Santa
Catarina for merging individual contributions into one consistent book format as
wellascompilingtheglossary.
Wiesbaden KlausNorth
Florian(cid:1)opolis GregorioVarvakis
February2016
ThiSisaFMBlankPage
Contents
Introduction:WhatIsa“DynamicSME”. . . . . . . . . . . . . . . . . . . . . . . 1
KlausNorthandGregorioVarvakis
DynamicCapabilitiesandOrganizationalResilienceinTurbulent
Environments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
DiegoJacobKurtzandGregorioVarvakis
Case:XENONAutomationTechnology:CuttingEdgeCompetence
asCompetitiveStrategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
TobiasReissmannandThomasHardwig
CultureforOrganizationalLearninginTurbulentEnvironments. . . . . 45
PeterFriedrichandJaquelineRossato
TheInnovationTripleChallenge:ACreativityCheckforSMES. . . . . 77
Maur´ıcioManh~aesandGuillermoAntonioDa´vila
IntellectualCapitalasaStrategicModeltoCreateInnovation
inNewTechnologyBasedFirms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
EduardoBueno,CarlosMerino,andCeciliaMurcia
AnAnalysisofMicroandSmallEnterprisesGrowth:AnApplication
oftheManagementExcellenceModel(MEG). . . . . . . . . . . . . . . . . . . . 107
MarcondesdaSilvaC^andidoandJacksonAndre´ daSilva
Case:KSTTurbineComponents:“Qualiyspeedservice”asCompetitive
Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
HeikoDittmerandThomasHardwig
Argentina:AChronicallyVariableSocio-EconomicEnvironment
forSMEs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
JuanCarlosHiba
ix