On Process Innovation Capabilities in SMEs: A Taxonomy of Process-Oriented Innovative SMEs

Relatively little attention has been paid to the study of the strategic management of process innovators and their capabilities. This paper contributes to our understanding of process innovation by analyzing responses from 4,208 SMEs which introduced only process innovation, and no product innovation. Our study was set up specifically to allow us to identify and isolate process innovation activities in SMEs. Findings reveal two distinct innovation patterns among process innovators, one characterized primarily by the acquisition of embodied knowledge and external support from suppliers, and a second centered on the development of R&D and high absorptive capacity, accompanied by organizational innovation.