Innovation management and Value Chain Design: Case of a Small Professional Services Firm

Abstract

The concepts of innovation and innovation management were usually associated with large firms in developed countries that focused on product manufacturing. More recently, researchers turned to studies of innovation in services and the relevance to small firms in developing countries. This paper explores the relevance and applicability of the concept of innovation management to small firms, particularly in the field of professional services, in the context of a developing state. A qualitative research method was employed involving collection and analysis of published articles, reports, and leading texts on the subject of innovation management. The main finding is that innovation management is highly relevant to small firms especially those that operate in the services sector. The value of the paper lies in the fact that innovation management and value chain innovation were not previously investigated in small professional services firms in the Caribbean, and, therefore, the paper contributes to filling that gap in the literature. The practical implications for managers are that open innovation and services innovation must be embraced, and business model and value chain innovation are critical to small firm delivery of services.