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Small and medium-sized enterprises (SMEs) have been particularly challenged by the Covid pandemic, the climate crisis, war and political tensions including the fuel price crisis. Strategic responses to crisis including cost-cutting as retrenchment in the short run, debt financing to preserve the status quo and exit. However, perhaps the most positive is to innovate for renewal. The paper considers how working with an approach to futures and foresight learning, three different SMEs during the Covid pandemic and beyond formed action learning groups and were able to find future opportunities from which innovation ideas for action in the present could be undertaken. The paper considers the meaning of innovation including what Revans saw as an ‘Innovation Paradox’ as a gap between invention and innovation. In SMEs, the importance of informal innovation and an innovation orientation are identified. The meaning futures and foresight learning is considered and the focus on the identification of new opportunities for products and services, delivered by a process of action learning. Findings from three SMEs are presented from meetings that took place during 2021 to 2022, when Covid restrictions were partly in place. They show how each programme begins with opportunity questions for the future which then lead to ideas after a consideration of trends and patterns. Further methods of futures thinking are presented which allow further ideas to be developed for innovation. In each case, ideas are selected for business planning after approval. Discussion of the findings considers the importance of futures and foresight learning combined with action learning for SMEs to become more strategic, future-oriented and creative in seeking opportunities for innovation.
Action Learning Research and Practice – Taylor & Francis
Published: May 4, 2023
Keywords: Small and medium-sized enterprises; futures and foresight; action learning research
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