Continuous Innovation and Performance Management of SME Clusters

Continuous innovation and performance measurement methods and tools have been applied in companies as a means to develop improvement actions related to strategic objectives and to monitor results so as to give feedback for further action. However, continuous innovation and performance measurement methods and tools can also be applied to manage performance of a cluster of firms. After a brief review of continuous innovation and the concept of collective efficiency of a cluster, this paper presents a conceptual model for managing actions for improving collective efficiency and measuring performance of an SME cluster. A research case is reported, for which the conceptual model has been applied and results discussed. The paper concludes that despite some difficulties in developing and using performance indicators in SMEs, the concepts presented by the proposed model can help to foster cooperation and maturity in continuous innovation in clusters of SMEs.

[1]  J P Riederer,et al.  INNOVATION MANAGEMENT–AN OVERVIEW AND SOME BEST PRACTICES , 2005 .

[2]  H. Harrington.  Business process improvement : the breakthrough strategy for total quality, productivity, and competitiveness , 1991 .

[3]  M. Porter.  Clusters and the new economics of competition. , 1998, Harvard business review.

[4]  L. C. R. Carpinetti,et al.  BENCHMARKING IN CLUSTERS OF SMES : DEVELOPMENT AND APPLICATION OF A DATA BASE , 2007 .

[5]  E.M. Van Aken,et al.  An organizational assessment method for transformation efforts , 1999, PICMET '99: Portland International Conference on Management of Engineering and Technology. Proceedings Vol-1: Book of Summaries (IEEE Cat. No.99CH36310).

[6]  Bennet P. Lientz,et al.  Achieve Lasting Process Improvement: Reach Six Sigma Goals without the Pain , 2002 .

[7]  Harry Boer,et al.  A continuous innovation framework: Some thoughts for consideration , 2006 .

[8]  Fernando Pimentel Puga,et al.  Alternativas de apoio a MPMEs localizadas em arranjos produtivos locais , 2003 .

[9]  H. Schmitz.  Collective efficiency: Growth path for small‐scale industry , 1995 .

[10]  Michael L. Tushman,et al.  Winning through innovation , 1997 .

[11]  George S. Day,et al.  Wharton on Managing Emerging Technologies , 2000 .

[12]  John Bessant,et al.  Enabling continuous improvement: a case study of implementation , 2004 .

[13]  W. L. Currie,et al.  Revisiting management innovation and change programmes: strategic vision or tunnel vision? , 1999 .

[14]  Sarah Caffyn,et al.  Development of a continuous improvement self‐assessment tool , 1999 .

[15]  J. Kotter.  Leading change: why transformation efforts fail , 2009, IEEE Engineering Management Review.

[16]  R. Kaplan,et al.  Using the balanced scorecard as a strategic management system , 1996 .

[17]  Jack Hollingum,et al.  Implementing total quality , 1987 .

[18]  Andy Neely,et al.  Perspectives on Performance : The Performance Prism Professor , 2000 .

[19]  John Humphrey,et al.  Trust and inter-firm relations in developing and transition economies , 1998 .

[20]  John Bessant,et al.  Dealing with discontinuous innovation: the European experience , 2008, Int. J. Technol. Manag..

[21]  Laurence Prusak,et al.  In good company: how social capital makes organizations work , 2001, UBIQ.

[22]  Andi Smart,et al.  Theory and practice in SME performance measurement systems , 2001 .

[23]  Luiz Cesar Ribeiro Carpinetti,et al.  Conceptual design of performance measurement and management systems using a structured engineering approach , 2005 .

[24]  H. Harrington.  Business process improvement , 1991 .

[25]  Khalid Nadvi,et al.  Clustering and Industrialization: Introduction , 1999 .

[26]  Tilman Altenburg,et al.  How to Promote Clusters: Policy Experiences from Latin America , 1999 .

[27]  John Bessant,et al.  Developing strategic continuous improvement capability , 1999 .

[28]  D. Swanson.  In Good Company: How Social Capital Makes Organizations Work , 2001 .

[29]  John Bessant,et al.  Learning tomanage innovation , 1996 .