Entrepreneurial bricolage: A key to innovation for SMEs in a developing economy

Abstract

Entrepreneurship promotes economic growth, particularly in developing economies where small and medium-sized enterprises (SMEs) are a significant source of employment and economic activity. However, SMEs in developing countries often face various resource constraints and weak institutions, forcing them to engage in entrepreneurial bricolage behavior by creatively combining existing resources. This study explores the relationship between entrepreneurial bricolage and product, process, and marketing innovation among SMEs in the Philippines. Logistic regression estimates reveal that entrepreneurial bricolage has a significant and positive impact on product, process, and marketing innovation. As entrepreneurial bricolage behavior increases, so does the probability of innovation, highlighting the importance of creative problem-solving in settings with inadequate resources. The study also emphasizes the need for policies that support SMEs by providing enabling resources, such as robust infrastructure and reliable communication platforms, to encourage firm innovation that fosters positive spill-over effects on the broader economy.