Innovation and knowledge creation : perspectives on the SMEs sector

Purpose: The paper aims to look at small to medium‐sized enterprises' (SMEs') approach to learning and innovation. Design/methodology/approach: The first research direction focuses on the internal and external sources for learning used in the innovation process. A second research direction focuses on the main types of innovation SMEs engage in along with some of the obstacles or constraints identified within the innovation process. In order to answer the research questions set, the authors conducted a survey among 161 Romanian SMEs from various economic sectors and covering different geographical areas. Findings: Romanian SMEs display a learning orientation related to innovation, using best practices within the organization and networking with external partners as internal sources for learning, whereas in terms of external support for learning, SMEs consider changes that take place on the market, changes in technology and the input from experts and consultants. Concerning the innovation type, Romanian SMEs are very much oriented towards innovation in their business model, at the same time being faced with various constraints such as lack of funds and high costs involved. Practical implications: Firstly, in what concerns the organizational learning dimension, the need for SMEs to focus on strengthening the collaboration with universities (higher education area), as the research pointed out that only few SMEs rely on universities and educational institutions in acquiring knowledge. Secondly, to focus on innovation and manage innovation activities as a core competency inside the firm in relation to designing a process of organizational change in SMEs, which should enhance drastically the performance of such initiatives. Originality/value: So far, few studies have been conducted on innovation and knowledge creation in South‐Eastern European SMEs. The findings presented in the paper offer a holistic view of the innovation approach in Romanian SMEs, emphasizing the predominant type of innovation implemented along with specific constraints applied. The originality of the paper also relates to the fact that few studies conducted in Romania on SMEs focus on the internal and external sources of knowledge in the innovation process.