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Crisis, innovation, and change management in less-developed local business ecosystems: The case of Eastern Macedonia and Thrace
Abstract
This study explores the co-evolutionary triangle of crisis, innovation, and change management in less-developed local business ecosystems. It takes as a case study the region of Eastern Macedonia and Thrace-one of the least developed regional socioeconomic business ecosystems in Greece and the EU-and tries to find out the correlation between the different aspects of this "global crisis-innovation-change management" triangle from the perspective of a sample of micro and small enterprises operating in this ecosystem. To this end, the authors conducted a qualitative, introductory, field research, finding that there is a significant gap between the predominant scientific view of regional underdevelopment and the perception of the people of everyday business practice. This article supports that this deficient perception is one of the determining factors of the delayed development for this regional entrepreneurial ecosystem.
... For the most part in these regions, ecosystems show significant dependence on activities of the primary sector. There is no highly developed local and interregional infrastructure (tangible and intangible), limited research and development activity as well as a lack of substantial influence from the local or regional administration policy mechanisms (Vlados, Katimertzopoulos, Chatzinikolaou, Deniozos and Koutroukis, 2019). ...
... Based on several scientific researches that have been undertaken in this context, the following causes have been identified as the main factor constraint for the development of companies and their ecosystems: a) the increased transport costs (expressed either in financial or time terms) as a result of the significant distance from the main population centers and economic activity, and b) the lack of concentration advantages (external economies of scale) enjoyed by the less remote areas. Distance is therefore affecting competitiveness both directly and indirectly, as businesses are less able to enjoy the benefits of creating business ecosystems (Katimertzopoulos, Vlados and Koutroukis, 2020;Vlados, Katimertzopoulos, Chatzinikolaou, Deniozos and Koutroukis, 2019). ...
... In these regions there is usually dependence on activities of the primary sector. Moreover, there is no highly developed local and interregional infrastructure, as limited activity in the field of research and development may be find, including the lack of influence of the broader political governance mechanisms (local or regional) (Katimertzopoulos, Vlados and Koutroukis, 2020;Vlados, Katimertzopoulos, Chatzinikolaou, Deniozos and Koutroukis, 2019). ...
James Moore coined the term business ecosystem, where businesses are considered as components of an ecosystem in which they collaborate, satisfying consumers and integrating innovation. A business ecosystem is an economic community supported by a structure of interacting organizations-businesses and individuals producing goods and services for consumers. The business strategy in a regional and local innovation ecosystem faces various challenges, such as a possible conflict with the great forces of the ecosystem and the creation of a healthy partnership for the development of new products-services. The business strategy developed in these ecosystems takes the form of new companies that use technological change to introduce new products or new business models through new competitive scenarios and the reciprocal relationships developed in this context. However, most businesses, especially in remote and underdeveloped regional and local business ecosystems, are facing many challenges; as such they require a different support framework for their innovation system. This system should work a way that it will enable organizations to develop their innovations based on their business partnerships, being able at the same time to balance their cognitive asymmetries. In the present research study, through the literature review of scientific research in the field of regional innovation systems and less developed business ecosystems, the central analytical dimensions and strategies (Stra.Tech. Man innovation theory) are identified and analyzed to determine how they could contribute to achieve effective business innovation and long-term stable growth and development.
... Different central or regional governments could follow the approach of the ILDI as a development policy mechanism focusing on the enhancement of the local or regional business ecosystem. In this context, Vlados et al. (2019) have suggested that this mechanism could work for the case of the less developed Greek region of Eastern Macedonia and Thrace and its small and medium-sized enterprises. For a comprehensive view of the actors that the ILDI can interconnect, the triple helix theory of the co-evolution of the institutions of universities, government policy, and businesses in the regional context can also be useful. ...
The formulation and implementation of development plans serve as the benchmark for evaluating economic progress in different sectors of an economy. Since independence, successive administrations in Nigeria have paraded different economic development plans. At the continental level also, several development programmes have been articulated for driving development in the countries of Africa. Many times, supposed laudable economic programmes have failed to identify with the interest of citizens, largely due to poor communication of such programmes. This study investigated citizens’ participation in the implementation of Nigeria’s Vision 20:2020. Among others, the study asked the following questions: to what extent are Nigerian citizens aware goals of Vision 20:2020 economic blueprint? What were the media used in popularising Nigeria’s Vision 20:2020 economic blue print? The study was anchored on the Participatory Development theory. The survey research design was used to study a population of 84, 004, 084 from which a sample size of 384 respondents was drawn. The sample was based on Keyton’s sampling system. Findings of the study showed that many citizens of Nigeria do not understand the goals of Vision 20:2020. It was also found out that many citizens of Nigeria cannot identify development projects executed in line with the goals of Vision 20:2020. Based on these findings, the study recommended, among other things, that Nigerian government should partner with civil society organisations to popularise the goals of Vision 20:2020. It was also recommended that citizens of Nigeria should be encouraged to participate in the formulation and implementation of development programmes.
... Different central or regional governments could follow the approach of the ILDI as a development policy mechanism focusing on the enhancement of the local or regional business ecosystem. In this context, Vlados et al. (2019) have suggested that this mechanism could work for the case of the less developed Greek region of Eastern Macedonia and Thrace and its small and medium-sized enterprises. For a comprehensive view of the actors that the ILDI can interconnect, the triple helix theory of the co-evolution of the institutions of universities, government policy, and businesses in the regional context can also be useful. ...
The study of spatial socio-economic development constitutes a significant field of analysis of innovation creation and diffusion. Understanding the spatial evolution of the different socio-economic systems in the age of globalization requires a synthesizing and integrated theoretical approach to how innovation is generated and replicated. This article aims to study three significant spatial socio-economic development theories –the growth poles, the clusters, and the business ecosystems. A literature review reveals that (a) the concept of growth poles concerns mostly the analysis of spatial polarization between specific territories and regions, (b) the clusters concept addresses the issue of developed inter-industrial competition and co-operation from a meso-level perspective, and (c) the analytical field of business ecosystems provides an evolutionary approach that can be valorized for all co-evolving spatial socio-economic organizations. In this context, an eclectically interventional mechanism to strengthen innovation is suggested. The Institutes of Local Development and Innovation (ILDI) policy is proposed for all firms and business ecosystems, of every size, level of spatial development, prior knowledge, specialization, and competitive ability. The ILDI is presented as an intermediate organization capable of diagnosing and enhancing the firm’s physiology in structural Stra.Tech.Man terms (strategy-technology-management synthesis).
The present study aims to examine and summarize some of the fundamental contributions of evolutionary economic thought. It begins by presenting some of the central traits of the main theoretical antecedents of evolutionary economics, from its foundation to date, identifying the conceptual prerequisites for a specific analysis to fit into its framework and methodology. Next, the presentation focuses on relevant recent analytical contributions and the evolutionary theory of the firm. Finally, it presents the Stra.Tech.Man approach that analytically synthesizes the spheres of business strategy, technology, and management to interpret the phenomena of adaptation and innovation of contemporary organizations through an evolutionary perspective. In this context, the Stra.Tech.Man approach is an alternative basis for reframing business dynamics through an evolutionary perspective. In particular, this paper presents some central findings of recent studies in the less developed Greek region of Eastern Macedonia and Thrace, demonstrating that this evolutionary approach has analytical value and interpretive utility.
The outbreak of the COVID-19 pandemic seems to be structurally transforming the global economy. This article explores how these recent changes impact the different types of organizations and the ways these may adapt in this repositioned context. First, we present the central dimensions of the unfolding health crisis and the subsequent broader socioeconomic crisis. Then, it is argued that this global-scale emerging transformation has brought about fundamental changes in the working environment within the accelerated Fourth Industrial Revolution. The article concludes that all socioeconomic organizations (irrespectively of size and sectoral scope) are now required to grow as swiftly as possible their strategic, technological, and managerial potential to innovate and adapt in this emerging reality. Τhis innovational adaptation to exit this structural crisis seems to be requiring the structuration of corresponding change management mechanisms.
The pandemic crisis of COVID-19, despite its unforeseen and explosive spread, constitutes a structural disturbance of global socio-economic balances. Through the fourth industrial revolution and amid the unexpected and profound recessionary economic pressures on a global scale, our world is heading towards a “new globalisation.” Exploring the economic and social implications of the COVID-19 crisis through several theoretical tools for interpreting the current global transformation, we conclude that the global economy is facing a severe threat. A renewed evolutionary theoretical interpretation seems imperative, and any perseverance to simplified and strictly fragmentary past approaches can only be ineffective. In this context, the long-term and sustainable exit of this crisis seems to require multiform organisational adaptations, at all levels of operation and by all actors, that can come only with the joint dynamics of innovation and effective change management.
In this study, we aim to determine how the global turmoil of COVID-19 acts as a catalyst for global transformations. After examining recent sociological and economic implications of this pandemic crisis, we analyse specific theoretical frameworks that can be helpful to illuminate some of the features of the current global evolutionary readjustment from an elliptic point of view. These theoretical approaches are the techno-economic paradigm shift, the notion of ‘endless transition’, the fourth industrial revolution analytical framework, and the approach of ‘new globalisation’. Finally, we identify that the current pandemic crisis has caused a ‘stroke’ to the world economy that accelerates developments and radically intensifies the pre-existing challenges. Especially for the less developed, stable, and resilient socio-economic systems and organisations (the case study of Cyprus is examined, respectively), we conclude that their survival and growth depends primarily upon their potential for adaptiveness, innovation, and on building efficient change management aptitudes and mechanisms.
Human resource management and continuing training are prerequisites for business innovation, especially when the fourth industrial revolution causes the rapid emergence of knowledge-intensive professions and the constraint of older ones. This article examines how human resources, in-business training, and educational needs are significant parts of entrepreneurial innovation and business development. We present field research that we conducted in the business ecosystem of Eastern Macedonia and Thrace, which is a less competitive region of Greece and Europe. After examining the region’s economic profile, we continue with field research results in its retail sector. Our findings suggest that these businesses desire and search for more systematic actions towards training enhancement and human resource management upgrading. Thus, we propose a policy mechanism that could function as a “business clinic” for the region, including the diagnosis of needs and “therapeutic” intervention in terms of education and knowledge. This local development policy could create a growth spiral for the entire socio-economic spatialized system.
Innovation becomes widely perceived as the most significant ingredient of socioeconomic development, for all types of organizations, at all spatial levels. This study aims to examine how a specific category of business people understand the phenomenon of innovation in relation to the dimensions of Human Resource Management (HRM) and intra- and external business education and training. It explores in particular how the firms of a less developed regional business ecosystem perceive this triangle of innovation-education-human resources, what is their current image and how this comprehension evolves over the last years. Through field research in firms located in the Greek region of Eastern Macedonia and Thrace, we highlight these qualitative correlations between innovation, workforce management, training, and education. Our findings suggest that the “image” of these entrepreneurs to these issues lacks interpretive depth and practical cohesion, which is related to pathogenies caused and causing the overall relative socioeconomic underdevelopment in the region. The originality of this research derives from the presentation and analysis of specific firms’ and professionals’ perceptions of innovation, which are relatively far from the standards set by the corresponding modern scientific literature and practice.
In an era of policy-driven systematic encouragement of local innovation processes, the concept of regional innovation systems has been arisen to produce, promote and cultivate the region's competitive advantage. The key reason for developing specific targeted policy measures within the regional innovation context is to focus on improving local business capacity, competitiveness and performance, including its business ecosystem. From this point of view, it is of crucial importance to promote interactions between different innovative actors who have good reasons to intersect, such as interactions between companies and universities or research institutes, or between small start-ups and larger businesses. These interactions may include interactive local learning and productive knowledge diffusion but they should also include the wider business community and governance framework. Therefore, this study investigates whether policy strategies could be geared towards the promotion of accessibility "to the development of a regional innovation system" and the "development of local comparative advantages" associated with the specific local resources, mainly in less developed business ecosystems.
Prior research studies undertaken in less developed business ecosystems indicate that companies themselves will grow in terms of regional development, mainly through innovating. Therefore, in order for local businesses in less developed ecosystems to lay the foundations for effective innovation they must adapt, improve and grow some essential internal business dimensions and variables, such as strategy, technology and management potential (Stra.Tech.Man. innovation theory). In this respect, the present study suggests the conception, analysis and interference of the mechanism of development in terms of the regional competitiveness web.
Overall, this academic paper is a conceptual research (Integrative review) that performs a literature review of several field research in regional innovation systems and less developed local business ecosystems, with the overall objective of identifying those variables (such as strategy, technology and management) that could contribute towards effective business innovation and long-term stable growth.
The conventional and traditional regional analysis seems to gradually changing focus, content and hermeneutic optic. The regional analysis of past seems increasingly saturated, being incapable to interpret and propose policy solutions that originate primarily from the potential of local development, innovation and entrepreneurship. To this end, new, multidisciplinary approaches of local development seem to prevail progressively, leading the study of development to the analysis of dynamically evolving localities.
European border regions have witnessed a long history of remarkable mobility shocks stemming from complex ecological and economic changes and geopolitical events. The experience of near-continuous regional and global crisis has increased interest towards the idea of resilience, that is, the ability of communities and regions to adapt and cope with disturbances and transitions. Inspired by the literature of regional resilience and the evolutionary approach, this paper will examine the difference that borders and geopolitical conditions make from the perspective of regional resilience and especially ‘border-regional resilience’. Particular focus will be on irregular cross-border mobilities and consequent transitions in EU external and internal border towns, here the Finnish towns of Lappeenranta and Tornio. The study points out that the geopolitical environment and the openness of the border partly determine the regional development trajectories and the ways of coping with cross-border mobility-related changes. Although the border location entails some vulnerability, formal and informal cross-border institutions and relations of trust are of crucial importance from the perspective of border-regional resilience. The paper proposes a research agenda for studying border-regional resilience in the context of environmental, economic and social changes and geopolitical events.
This paper aims to clarify to what extent the emerging theory of innovation ecosystems (IE) and the theory of systems of innovation (SI) are complementary and then identify how its communities could benefit from cross-fertilization. We performed a critical literature review of both topics using meta-synthesis as method to identify, analyze and compare the two theories. Using a framework, this paper explores which elements belong to each theory's domain, in order to identify the key factors necessary to compare the two theories. The results of this analysis show that both theories involve the assessment of three key aspects: the understanding of innovation activities, the role of the agents involved, and the interaction and resulting networks among them. A similarity was found showing that these two different theories are applications of System Thinking approach. Another finding, which has not been mentioned in previous
research on the topic, is that the construction of the initial concepts of the IE theory is originally rooted in several SI elements. Finally, we found key factors that may be the cross-fertilization link between the two communities that represent each theory.
Read-only version available: https://rdcu.be/bBkXa
Researchers and theorist have put great effort into defining and examining entrepreneurial ecosystems and how business clusters develop in certain regions. Favourable entrepreneurship ecosystems are thought to drive business and innovation. However, a commonly accepted measure of entrepreneurial ecosystem favourableness has yet to be developed. The purpose of the present research is to contribute to ecosystems research by taking a two-study approach to developing and validating a perceptual measure of entrepreneurial ecosystems. The perceptual measure is based upon prior conceptual frameworks that outline ecosystems. In developing this measure, we are able to further unpack and illuminate the factor structure of ecosystems, the results of which have direct scholarly and practitioner uses.
This chapter adopts a wider geographical scope to draw attention to the European “project” by analyzing cross-border policies and development of, and in, the European Union with a special focus on tourism. It begins with a general overview of the main objectives and challenges of cross-border cooperation in tourism, before going on to illustrate the goals and structure of cross-border policies in the European Union by emphasizing the role of tourism. At this point, a specific focus is placed on tourism policies in Eastern/Central Europe after the fall of the Iron Curtain. In addition, the history and functions of the Schengen Agreement and its importance for cross-border tourism in Europe are outlined and several of the EU’s instruments and funding programs are discussed with emphasis on the INTERREG Community Initiative and the efforts of Euroregions. Both the opportunities and weaknesses for the development of cross-border destinations are examined. In summary, this chapter addresses the issue of the role that cross-border tourism plays among EU policies and programs, the resources that are invested in tourism projects, and their identifiable impacts.
Purpose
The purpose of this paper is to provide a contextual analysis that helps explain how socio-cultural factors are negatively impacting the evolution of the entrepreneurial ecosystem in a struggling regional economy.
Design/methodology/approach
A case study method is used to provide a detailed contextual analysis triangulating primary and secondary data.
Findings
This paper provides insight into a region impeded from embracing the benefits of innovation-driven entrepreneurship in fostering economic development. The authors show that socio-cultural factors may be inhibiting the region from having a functional entrepreneurial ecosystem that can support innovation. Specific aspects of culture and social capital weaknesses are identified and insight into the potential causes of these impediments were offered. As well, the paper shows how the fundamental nature of culture may be affecting other elements of the entrepreneurial ecosystem from maturing.
Originality/value
This paper adds to a small, but growing, body of literature that is illustrating the evolutionary nature of entrepreneurial ecosystems and the significant impact of socio-cultural attributes to that evolution. This paper responds to calls to investigate contexts in which innovation does not thrive and where economic challenges prevail. The value of this research paper is to provide conceptual contributions in a contextual analysis from which other researchers can draw comparisons, insights and inspiration for similar approaches. Despite the abundance of research discussing the importance of culture, there are very few actual case studies showing concrete examples of culture and its influence on a region’s entrepreneurial ecosystem.
Not all economically disadvantaged—“less developed” or “lagging”—regions are the same. They are, however, often bundled together for the purposes of innovation policy design and implementation. This paper attempts to determine whether such bundling is warranted by conducting a regional level investigation for Canada, the United States, on the one hand, and Europe, on the other, to (a) identify the structural and socioeconomic factors that drive patenting in the less developed regions of North America and Europe, respectively; and (b) explore how these factors differ between the two contexts. The empirical analysis, estimated using a mixed‐model approach, reveals that, while there are similarities between the drivers of innovation in North America's and Europe's lagging regions, a number of important differences between the two continents prevail. The analysis also indicates that the territorial processes of innovation in North America's and Europe's less developed regions are more similar to those of their more developed counterparts than to one another.