Spurred or spurned? The effects of combined innovations and major obstacles on B2B SME capability generation and future focus

Abstract

Expanding organizational learning theory and ambidextrous theory, this research investigates the potential differences in connections between business-to-business (B2B) small to medium enterprises (SME) engaging in customer facing (product and service) innovations versus B2B SMEs engaging in process innovations in addition customer facing innovations related to organizational capability generation (innovation, business model) and future focus on innovations or on investing in facilities and machinery. It also examines to what extent the context of major obstacles in financing and/or competition impact the same elements for the companies. Using survey data from leaders at 1405 B2B SMEs in the U.K., the results show that some of the elements spur improvements in the capabilities and focus while other combinations spurn the level of capabilities and focus.