Systematic Idea Generation and Organizational Capabilities for Front-End Innovation Performance in SMEs

How and when do smalland medium-sized enterprises (SMEs) benefit most from idea generation activities? The answer is perhaps not as straightforward as one might assume. SMEs are subject to size-related liabilities, which often obstruct their efforts in successfully undertaking front-end activities. The front-end period begins when an idea is recognized collectively in the firm as representing an innovation opportunity, and it concludes with the approval or disapproval of the proposed project. However, due to resource constraints, SMEs struggle with idea generation, especially when they intend not only to encourage influx of new internal ideas, but also to seek external ideas to increase their chances for innovation performance. Thus, possession of systematic idea generation activities within SMEs can be critical for achievement of high front-end innovation performance, which ultimately leads to the launch of commercially successful innovations.