An integrated business model of knowledge-based innovation for SMEs

To date, the literatures provide linkages between knowledge management and innovation are limited, and existing studies have derived their innovation processes from large companies' perspectives and few have considered the needs of SMEs. Little research has been aimed at identifying the integration of supporting processes of innovation from a knowledge-based perspective, although a fascinating array of innovation research has been carried out in the context of R&D issues and economic factors. The gaps between knowledge/innovation and internal/external innovation processes should be filled in to map a more comprehensive picture of the propositions. Therefore, this paper is aimed to bridge these gaps. Existing studies on innovation processes were reviewed and their limitations were identified. By integrating insights drawn from these studies as well as adding some new approaches, the author proposed an integrated business model which is believed to be more valuable and complete for SMEs to integrate internal and external innovation resources. The importance of the proposed model was theoretically discussed and justified through case studies. In addition, some research propositions were proposed for future researchers and practitioners. This study is probably the first to provide an integrated business model for implementing innovation in the SMEs under knowledge-based perspective. It gives valuable information, which hopefully will help SMEs to accomplish knowledge-based innovation and achieve sustainable competitive advantage. The results of the study will benefit not only the construction of knowledge based innovation framework, but also the business model transformation of competitive advantage.