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Symbiotic Innovative Relationships of Small and Medium Enterprises

Adeleke.O.Banwo 1, Du Jianguo 1, and Uchechi Onokala 2
1. Jiangsu University, School of Management, Zhenjiang, 212013, China
2. Department of Business Administration, University Of Lagos, Akoka Lagos, Nigeria

Abstract—Majority of literature and scholarly research on innovation focus on developed countries, while there exists very little research on Small and Medium Enterprises (SMEs) in developing nations. SMEs innovative styles are peculiar to their environment like the biological amoeba and home-grown within the confines of limited resources and myriad of problems. This paper aims to explore the nature of “homegrown” innovation among SMEs arising from their symbiotic relationships with Multinational companies and strategic alliances with Asia. Evidences indicate the prevalence of process innovation in SMEs clusters and external linkages with Multinational corporations and Asian market has a positive impact on their performances, survival and growth. The paper employed a qualitative approach and attempts to contribute to the literature on innovation in developing countries and provide strategic and practical policy and business recommendations beneficial to SMEs stakeholders and Multinational giants. SMEs in developing can use group borrowing to access bank loans easily, nurture their outward strategic linkages and pursue innovation practices suitable to their context.

Index Terms—Small and medium enterprises (SMEs), developing countries, external linkages, clusters, Innovation, Blue Chip Companies, Multinationals

Cite: Adeleke.O.Banwo, Du Jianguo, and Uchechi Onokala, "Symbiotic Innovative Relationships of Small and Medium Enterprises," Journal of Advanced Management Science, Vol. 3, No. 2, pp. 128-131, June 2015. doi: 10.12720/joams.3.2.128-131
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