Innovation failure in SMEs: a narrative approach to understand failed innovations and failed innovators

Official URL: https://dx.doi.org/10.1142/S1363919621501048

While innovation is an attractive path, it is also a rocky path made up of numerous challenges, even failures. This study provides new knowledge for understanding innovation failure. It seeks answers to the question: What are the perceived factors of innovation failure in SMEs? Every individual who has experienced an innovation failure has a story to tell. Therefore, the research question of this study is answered based on these stories. The main data are collected through narratives produced by individuals who have been involved in the development of completely failed innovation initiatives. In addition, four expert interviews are conducted. The results demonstrate that the most common factor for innovation failure is the occurrence of several incidents during the innovation process that slowly contribute to complete failure. In addition, the results reveal three SME-typical narratives of failed innovations as narrators the Passionate Innovator, the Solo Innovator, and the Developer Innovator.