Abstract
The purpose of this chapter is to present the state of micro and small enterprises (MSEs) in Bogota, Colombia with respect to the contribution of innovation as support to reach sustainable organizations in turbulent environments. To achieve this objective, a questionnaire structured and validated in 2020 by the Latin American Studies Network in Management and Business (RELAYN, its abbreviation in Spanish) was applied to 400 directors of MSEs located in the neighborhoods of Candelaria, Bosa, Puente Aranda, and Tunjuelito in Bogota. For the development of this research, a correlational analysis is made, evaluating the degree of association between some dependent variables such as increase in sales, increase in profit and the risk of closure of the establishment, and an independent variable, which is innovation. Three hypotheses are proposed, which are approved in part, as can be seen in the results and conclusions of this research.
TopIntroduction
Organizations are constantly immersed in increasing and complex changes in their environmental surroundings; hence, innovation becomes a fundamental strategy to face the different situations that arise before them. Obviously, MSEs are not strangers to this volatility and uncertainty. In this sense,
Garcia-Cali, Garcia-Tamayo & Cardeño-Portela (2018) quoting Emery & Trist (1965), forerunners of defining “turbulence” in the managerial environment, explain that it is understood as an instability or rate of change in the environment of organizations, thus determining a type of dynamic and uncertain environment.
Those organizations that want to achieve sustainability in the midst of turbulent environments, require an innovation strategy that helps them to face the new challenges that arise before them every day and in this way, reach a position in the market with sustainable competitive advantages. It should be understood then that innovation refers to “the changes foreseen in their activities and that are oriented towards improving their results”, which implies having a capacity on the part of the company to involve “scientific, technological, organizational, financial and commercial actions” in its innovation process (Perez, 2019, p. 92 and 95, quoting OCDE, 2006). Regarding sustainability, it is considered that it occurs when the organization generates value in the economic, social and environmental areas in the medium and long term, contributing to the well-being and progress of current and future generations in the environment in which they operate (Uribe-Macias, Vargas-Moreno & Merchan-Paredes, 2018, quoting Barcellos, 2011).
Given the foregoing, the objective of this research is to know if the components of innovation aimed at the market, innovation in processes, innovation of goods or services and innovation in human resources affect the increase in sales, increase in profit and the risk of closure of the establishment (sustainability) of the MSEs located in Candelaria, Bosa, Puente Aranda and Tunjuelito in Bogota, although they are in turbulent environments.
Rivera-Rodriguez (2010) quoting Ansoff, (1965, 1990); Davis et al, (1991); Miller et Friesen, (1982); Naman, & Slevin, (1993); D’Aveni, (1995); Morris et al, (1995); Mason, (2006), assures that innovation activities break with routine and tradition, encouraging creativity and undertaking for the development of new products and services, this being one of the most recommended mechanisms to face turbulent environments and achieve sustainability.
Key Terms in this Chapter
Increase in Sales: Reaching an optimal level of sales due to the actions taken to place the products or services in the market.
Innovation of Goods or Services: To introduce in the company a good or service that is new or significantly improved taking into account its characteristics or previous use. This innovation includes significant improvements in technical specifications, components and materials, built-in software, ease of use or any other functional characteristic.
Increase in Profit: Achieving an interest or benefit due to the operations executed in the operations of the organization.
Innovation in Processes: Implementing new methods or significant improvements in production or servuction. This not only includes significant changes to processes but also to the equipment or software required.
Risk of Closure of the Establishment: Possibility that an organization closes or is liquidated due to different factors such as lack of sales, liquidity, and non-access to credit, which lead it to take this decision.
Innovation Aimed at the Market: Implementing new methods to trade products or services involves efforts to make significant changes in the design of the product or packaging, location of the product, way of promoting the product or service and in valuation.
Innovation in Human Resources: It entails changes or improvement proposals by the organization in its methods related to the practice of human resources management, organization of the workplace or the way the external relations of the company are managed.