Abstract
With Networks, SMEs and the University: The Process of Collaboration and Open Innovation, Andrew Johnston and Robert Huggins bring our attention to the world of collaborative alliances between Universities and Small and Medium Sized Enterprises (SMEs), referred to hereafter as U-SMEs. One of the interesting features of this book is that it provides an in-depth and illuminating examination of the collaboration process from the SMEs’ perspective.
The book is based on case study research with 22 SMEs in the United Kingdom that belong to different industrial sectors. As per a recent report on SME survival rates in the European Union, such businesses have a 5-year survival rate of 43.86%. 1 This book therefore serves as a revitalising hope for SMEs struggling for survival. The empirical findings as reported in the book are well structured across four different stages of the collaborative project lifecycle (Kim et al., 2010): (1) identifying strategic needs, (2) accessing and selecting a partner, (3) implementation and partnership, and (4) reassessing and reshaping partnerships. To enhance the trustworthiness of results, a clear chain of evidence in the form of quotes from interviews with SMES entrepreneurs is provided throughout. An outstanding feature of the book is the detailed information about the SMEs, their UK university partners and collaboration-related aspects, through tabular and graphical representations.
The book contains 10 chapters including an introductory background (Chapter 1), conceptual background related to U–SMEs’ collaborations (Chapter 2–4), an examination of collaboration needs based on internal analyses of firm capabilities (Chapter 6), selection of the credible partner (Chapter 7), a chapter on absorbing and utilising university knowledge in business (Chapter 8), an analysis of the results of collaboration partnerships (Chapter 9) and concluding remarks (Chapter 10).
Chapter 1 provides a brief introductory background about U-SMEs collaborations. The problem is well formulated by highlighting the mixed evidence about such collaborations and the match between the SMEs resource needs and the impact of the knowledge transfer from universities beyond their academic boundaries (also termed as the third mission of universities). It seems that there is a myth among SMEs about the potential of the universities to be a strong provider of knowledge within the innovation ecosystem.
Chapters 2 and 3 discuss the background of open innovation and strategic alliances thereby positioning the university as one of the important elements of the innovation ecosystem and a well-established strategic innovation partner. This discussion is continued in Chapter 4 which provides rich detail about the collaboration process including how collaborations are established, the benefits, drawbacks and the role of proximities in establishing such links (spatial, social, technological and organisational proximities).
Chapter 5 highlights the importance of universities to the UK economy and provides details relating to the supportive policies for the collaboration of U-SMEs. Chapter insights are driven by the analysis of several secondary studies, which are very well reported in clear tabular formats. The rising number of U-SMEs collaborations in the United Kingdom is the best example of the potential of such links which justifies the efforts spent by the authors in planning, conducting and reporting the empirical findings as disseminated to the audience through this book.
Chapter 6 highlights that SMEs who seek to collaborate with universities do so because they lack the capabilities to innovate themselves. Several factors also influence when universities are selected as external partners of innovation, such as relational and cognitive factors, which are powerful motivations for fostering such collaborations. It seems the stronger the factors, the greater the ability to overcome the myths and preconceptions surrounding collaboration with universities. A key takeaway from this chapter is that several factors are responsible for motivating SME to establish collaborations with the universities as avenues for innovation including similarities between the collaborating partners (proximities), high-quality knowledge, learning experience, praise and honour resulting from collaboration (kudos), which help SMEs to market their innovation prowess, a timely approach by universities for initiating collaborations, lower risks and access to plenty of resources (e.g. public grants).
Chapter 7 usefully describes the process adopted by SMEs to select a credible collaboration partner. This chapter highlights the importance of evaluating the credibility of the university partner in order to ensure successful collaboration outcomes. Different types of credibility assessments are discussed ranging from blind faith to realism and specificity. Multiple assessment techniques may be employed. The authors note that the evaluation is quite subjective, however, and sometimes can only be made after working with universities.
Chapter 8 covers the execution of the collaboration agreement. The knowledge transfer from universities to SMEs and the absorption of this knowledge within the business is well illustrated by the introduction of the role of Knowledge Transfer Programme (KTP) associate. Various barriers to collaboration are also noted which signify the need for both SMEs and universities to take shared responsibility towards collaboration activities.
Chapter 9 highlights the ways in which SMEs evaluate the success of the collaboration. This chapter mentions that SMEs evaluate success in terms of the output and sometimes by going one step higher and looking at business impacts. This chapter brings several useful insights into the collaboration process in to focus, including that previous experience with a university is a critical factor in project success and a key determinant as to whether or not SMEs will maintain the recurring relations with the partner in future. Overall, even if the collaboration fails, it will bring some learning to the SMEs and may catalyse future collaborations.
The empirical findings are summarised and the implications for the audience are given in Chapter 10. As mentioned by the authors, the findings do not reflect the perspectives of the universities involved in the collaborations, and there is a need for further studies in this regard. However, even if findings are not statistically generalizable due to the limited number of studied cases, we believe they are successful in busting the myths associated with U-SMEs collaborations generally or the likelihood of their success more specifically. This book provides a key lesson to all SMEs which is that universities can be important knowledge partners and part of their innovation ecosystem and successful collaboration is the result of the mutual efforts of partners.
The findings are particularly meaningful to one special category of SMEs – that is, startups. Startups have high failure rates, mostly attributable to an inability to find the right product/market fit (Gupta et al., 2020). The book will serve as a useful guide for the startup community to involve universities as a key external source of knowledge for innovation management.
Finally, the book’s intended audience is SMEs, academics, knowledge-exchange practitioners, and policymakers. Researchers may find the book useful in terms of the theoretical underpinnings it provides for future research on collaborative alliances between SMEs and universities. Budding entrepreneurs whose entrepreneurial mind-set is shaped within an academic setting, will especially benefit from the references to how business opportunities can emerge from, and be harnessed in, close proximity to academicians.