Title: The development of an innovation strategy in the SME context

Authors: Frederic Le Roy, Said Yami

Addresses: University of Montpellier, GSCM – Montpellier Business School, University of Montpellier I, ISEM, Espace Richter, Bat. E, Rue Vendemiaire, CS 19519 – 34 960 Montpellier Cedex 2, France. ' University of Montpellier, University of Montpellier I, ISEM, Espace Richter, Bat. E, Rue Vendemiaire, CS 19519 – 34 960 Montpellier Cedex 2, France

Abstract: The objective of this research is to study the process of creation and development of a disruptive strategy in the Small- and Medium-sized Enterprise (SME) context. The method consists in thoroughly studying the case of an SME, which made a success of a disruptive strategy. Two lessons are drawn from the case. First is that SMEs, because of their specificities, are organisations very favourable to the development of disruptive strategies. The second is the difficulty, which these companies have in renewing this type of strategy. The initial success at the same time involves growth of the company and imitation by new competitors. These new competitors exert a strong competing pressure on a company that progressively loses its specificities of SME with its growth, and thus its capacity to make new strategic innovations.

Keywords: disruptive strategies; innovation strategies; small- and medium-sized enterprise; SMEs; furniture industry.

DOI: 10.1504/IJESB.2007.013690

International Journal of Entrepreneurship and Small Business, 2007 Vol.4 No.4, pp.431 - 449

Published online: 11 May 2007 *

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