Constraints and Capacities in Small Established Firms : The Role of Managerial Levers in the Innovation Process

The importance of innovation for sustained competiveness is well stated in the literature. However, most product innovation research has so far focused on large firms or small high tech, start-up or spin-off companies. This study investigates innovation process practices in small established firms through the use of five managerial levers considered to determine the process. Based on a case-study design involving eight small established firms with growth ambitions, the results show that the levers “mission, strategy and goal” and “organizational learning” are important throughout the process, and that the lever “resource allocation” is directed towards the later phases of the process. The levers “structure and systems”, as well as “organizational culture” are less emphasized. By developing and testing an analysis model based on the innovation process and managerial levers, this paper contributes with insights of innovation in established small firms valuable for further research.