TY - JOUR

T1 - Does a rural location matter for innovative small firms?

T2 - How rural and urban environmental contexts shape strategies of agri-business innovative small firms

AU - Deakins, David

AU - Bensemann, Jo

N1 - This article is (c) Emerald Group Publishing and permission has been granted for this version to appear here. Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.

PY - 2019/7/8

Y1 - 2019/7/8

N2 - PurposeIn this paper we present qualitative evidence on strategies undertaken by 34 innovative small firms. DesignThe sample of innovative firms is solely recruited from the agri-business sector and are located in contrasting environments varying from rural areas with low urban influence to areas with high urban influence and ‘main’ urban or city areas. We discuss strategies in the light of a theoretical approach that incorporates a resource-based view, dynamic capabilities and social network theory. FindingsAlthough there is diversity in strategies across our 34 innovative small firms, irrespective of their ‘rural’ or ‘urban’ environment, qualitative evidence sheds light on differences in the way that strategies are pursued. Research ImplicationsThe study indicates that small firms in rural environments can be just as innovative as their counterparts in urban environments, however, we demonstrate that they adopt different strategies, that have been shaped by their environment, to achieve innovation. We use our qualitative evidence to develop the theory of dynamic capabilities and classify our sample into four clusters which marries the environmental context and innovative dynamic capabilities.Originality and ValueThe paper makes a contribution to a research gap on the way that the environment can shape management strategies in innovative small firms. It contributes to a limited literature in this area.

AB - PurposeIn this paper we present qualitative evidence on strategies undertaken by 34 innovative small firms. DesignThe sample of innovative firms is solely recruited from the agri-business sector and are located in contrasting environments varying from rural areas with low urban influence to areas with high urban influence and ‘main’ urban or city areas. We discuss strategies in the light of a theoretical approach that incorporates a resource-based view, dynamic capabilities and social network theory. FindingsAlthough there is diversity in strategies across our 34 innovative small firms, irrespective of their ‘rural’ or ‘urban’ environment, qualitative evidence sheds light on differences in the way that strategies are pursued. Research ImplicationsThe study indicates that small firms in rural environments can be just as innovative as their counterparts in urban environments, however, we demonstrate that they adopt different strategies, that have been shaped by their environment, to achieve innovation. We use our qualitative evidence to develop the theory of dynamic capabilities and classify our sample into four clusters which marries the environmental context and innovative dynamic capabilities.Originality and ValueThe paper makes a contribution to a research gap on the way that the environment can shape management strategies in innovative small firms. It contributes to a limited literature in this area.

KW - Innovation

KW - customer co-creation

KW - private equity

KW - early adopters

KW - rural and urban environments

U2 - 10.1108/MD-07-2017-0658

DO - 10.1108/MD-07-2017-0658

M3 - Journal article

VL - 57

SP - 1567

EP - 1588

JO - Management Decision

JF - Management Decision

SN - 0025-1747

IS - 7

ER -