Innovation in Micro and Small Enterprises: Resources and Capabilities

Objective: the article aims to identify the relevant resources for the composition of managerial and transactional capabilities in the context of micro and small enterprises (MSEs). Method: through a literature review, the resources associated with the innovation were identified: leadership, people management, information and knowledge, relationships with clients, suppliers, and society, and results. The resources were collected and measured using a structured questionnaire made available by the Local Agent for Innovation program, applied to 447 MSEs in the state of Pernambuco, between 2015 and 2017. Confirmatory factor analysis was used to verify how these resources contribute to the composition of capabilities. Results: the results demonstrate that the managerial capability is composed of the relationship with society and suppliers, leadership, the sharing of information and knowledge, and people management. Transactional capability is made up of the relationship with customers and the results obtained by the firm. Conclusions: although MSEs have restrictions on access to technologies, their organizational resources seem to contribute to the development of innovation capability and to obtain competitive advantage.

Real Time Impact Factor: Pending

Author Name:


Keywords: innovation, dynamic capabilities, resource theory, micro and small enterprises


EISSN: 1982-7849

EOI/DOI: 10.1590/1982-7849rac2021190106

Add Citation Views: 1


Advance Search

Get Eoi for your journal/conference/thesis paper.

Note: Get EOI for Journal/Conference/ Thesis paper.


Share With Us

Directory Indexing of International Research Journals