With many manufacturing SMEs underperforming, the purpose of this paper is to evaluate which aspects of Open Innovation (OI) are applied and how these affect the performance of manufacturing SMEs. Using a set of 132 Swedish manufacturing SMEs, internal and external aspects affecting OI application were evaluated with regard how they affect OI performance. Two clusters were identified. One cluster had higher values on all variables except from supporting organizational structures, where the other group had the higher value. However, the variable with the strongest differentiating impact was by far strategic orientation. There was no significant difference in financial performance between the two clusters but several significant differences could be established regarding innovation performance measurements. 

The knowledge on manufacturing SMEs and Open Innovation (OI) is limited and therefore, this article describes and evaluates how manufacturing SMEs apply and benefit from OI. Based on a survey and additional financial data, 151 Swedish manufacturing SMEs were evaluated with regard to variables concerning OI application and financial performance. The conclusions are that SMEs are very open to and want to learn from new ideas outside of the firm, however mainly applying inbound OI activities. Medium-sized firms use innovation collaboration more and are less reluctant to IP appropriability regimes. Being part of a larger organization may help SMEs use patents and trademarks. Significant relationships were established between OI variables and firms with the highest and the lowest profitability. These had a common core labelled "aiming at maintaining technology leadership". Finally, no connection between applying OI activities and firm profitability could be established.

1. Study objective:To get a better understanding on how an interaction between small firms’ managerial intentions, competences, embedded networks and firms’ perceived opportunities from industrial and institutional environments formstheir internationalization pathway over the time.

2. A brief statement of method:Four longitudinal in-depth case studies were selected from 293 respondents to a survey in 2010 on SwedishSMEs’ China business experience and interest.

• Chosen cases are contrast in their previous interna-tional business experience and traits of product/ service offerings.

• The study uses a mixed method to collect primary data and the data are collected several rounds along tar-get market entry process.

3. A summary of results:In a case of small service firm without pre-international business, influences from domestic intermediate actors in professional networks play a big role in firm’s opportuni- ties discovery process.

Other cases show that an iterative learning process in emerging market entry. However, the opportunities searching process is triggered by internal motivations such as growth.

The study captures small firms changing managerial attentions under stimulations from external environment and internal motivations. The study shows that interac- tion between small firms’ internal means (resources) and attitude, and firms’ external environment plays a majorrole in forming a dynamic process of internationalization.

4. The conclusionsThe pattern of smaller firms’ internationalization processis dynamic and non-linear.In an exploration phase of internationalization pro-cess, external stimulators might impact a direction interms of market selection and entry mode.

The objective of this article is to uncover benefits and risks of Integrated Product Service Offering (IPSO) in a systematic manner. To do so, it adopts an explorative longitudinal in-depth case study (development of an IPSO based on a new technology) and adds insights to the existing literature. The article first proposes a theoretical and generic framework termed the PCP (Provider — Customer — Product) triangle with associated information flow and uncertainty. Second, various types of benefits and risks are presented based on the framework. Among others, the benefit of keeping IPR (Intellectual Property Rights) with the provider and the risk of regulation change are new findings from the case study. In addition, the case study reveals that IPSO is regarded as a positive contributor to innovation. Applying the framework and classification of benefits and risks as norms to other cases has yet to be done for verification. However, the framework contributes scientifically to a better understanding of the benefits and risks of IPSO. In addition, this framework is advantageous with its easiness to understand, which contributes practically to the dissemination of IPSO insight to industry.

The importance of fast-growing companies, so-called gazelles, for

the creation of jobs and wealth in society is undisputed (e.g. Birch 1981). Less

is known about how a firm can become – and stay – a gazelle. While

innovation is often pointed out as a key to successful business development, the

relationship between investments in innovation and R&D activities and

profitable long-term growth is still unclear. The aim of this paper is to evaluate

the importance of innovation aspects for rapid growth in small and mediumsized

enterprises, SMEs. Empirically, it is based on an initiative to enhance fast

growth in SMEs in a region in Sweden. Early results from analyzing 39 cases

indicate that innovation factors distinguish fast-growing companies from lowgrowing

ones.

The purpose of this article is to compare within-family successions and external-party takeovers in family-owned manufacturing SMEs to determine potential differences in how they are perceived and managed. This paper focuses on two long-term aspects of family businesses – their succession and their ability to innovate – defining innovativeness as an aspect of organisational culture. Based on ten case studies, the paper concludes that the values related to a firm’s context, influenced by the divesting party as well as by the choice of successor, create inertia, to the extent that only minor changes in innovation orientation are possible. External owners may focus to a greater extent on growth and new ways of innovating, while family-succeeded firms diversify so as not to abandon previous businesses. Intermediating factors, such as customer involvement, type of SME, and the acquirers’ motives, influence the innovative organisational culture and create explanatory links to innovation intensity and methodologies of innovation.

In a study of 409 Swedish SMEs, the difference between the highest growing, which can be characterized as gazelles, and the lowest growing companies were examined regarding performance change over a four year period and what contributed to the growth from an innovation perspective. It was concluded that, besides growing, the highest growing companies also showed high profitability,increased number of employees, and significantly higher markets shares locally, nationally and internationally than the lowest growing companies. Several traits were found to contribute to this. The highest growing companies had a significantly higher portion of new products as part of the turnover during the four years studied and they perceived themselves as differentiating from their competitors concerning: (1) offering better products, (2) understanding customer needs better, (3) having a higher pace or being more agile, and (4) keeping costs down. They also found it more important to take risks, reinvest any profit, and to focus on growth than the lowest growing companies, and this regardless of industry.

This paper presents an in-depth case study from a development project in the bank sector. The findings have implications for companies that consider openness in their innovation activities. A large company that wishes to involve suppliers, partners, customers and end-users need to be prepared organizationally, with e.g., motivated individuals, and allocated budgets. This applies regardless company size, but, the study indicates that a smaller firm can more easily involve end-users, and can take advantage of its (built-in) proximity and flexibility towards customers. By knowing more and by planning for openness in a product development project, the expectations of involved parties can more easily be met. The indepth case study illustrates that openness in innovation takes time, and requires efforts, and should not be undertaken unless the company is well prepared for it.

This paper investigates factors that can explain sustainable growth in established

small and medium-sized enterprises (SMEs). Deducted from previous research,

tentative explanatory factors serve as a base for constructing a model for assessment

of an SME’s growth potential. Applying the assessment model on 154 companies did

not result in a clear pattern of factors that are most important for long-term profitable

business development and growth, but showed important overall differences between

financially strong companies and weaker ones. These results can be a base for further

refinement of factors that should be taken into account for sustainable growth in

SMEs.