Stimulus factors on innovativeness in traditional micro and small enterprises: An exploratory study on peruvian furniture firms

This paper presents an exploratory study aimed at conceptualizing and testing a model to predict the influence of organizational and managerial factors on innovativeness in traditional micro and small enterprises (MSEs). Data was collected through in-depth interviews based on a structured survey with the owner/manager of 37 Peruvian MSEs in the furniture industry. The Partial Least Square (PLS) path analysis reveals that the organizational structure, the degree of a formal approach in the innovation processes, as well as the use of external linkages to acquire knowledge and ideas from other organizations, have a significant positive effect on firm innovativeness. By contrast, organizational culture, innovation strategy and customer involvement did not prove to be meaningful stimuli. This research contributes to increase the body of knowledge in the field of innovativeness in traditional low-tech MSEs, a topic that has been little explored in least developed countries like Peru, where this kind of firms are commonly the most important employment providers.