Mehmet Civelek

University College of Business in Prague, Prague, Czech Republic

E-mail: m_civelek@windowslive.com 

ORCID 0000-0002-1247-5308

Major obstacles in innovative activities of family-owned SMEs: Evidence from Czechia

Aleksandr Ključnikov

University of Entrepreneurship and Law, Ostrava, Czech Republic 

E-mail: kliuchnikov@gmail.com 

ORCID 0000-0003-0350-2658

Vendula Fialova

University of Entrepreneurship and Law, Ostrava, Czech Republic 

E-mail: vendula.fialova@vspp.cz

ORCID 0000-0002-2368-0243

Abstract. Innovation is one of the most crucial factors that make SMEs differentiate themselves against their competitors to generate more income, profit, and exports. In this context, this research explores the differences in family-owned SMEs' innovativeness by highlighting the most common obstacles that family-owned SMEs face. In parallel with this purpose, 350 family-owned SMEs in Czechia are examined. The researchers created a self-administered and internet-mediated questionnaire and sent it to the survey respondents that were intentionally sampled to collect the research data. We used the independent Sample T-test performed in SPSS to analyze the differences between the selected variables. According to the results, this paper confirms the nonexistence of the differences between innovativeness of SMEs. Significant constraints of SMEs regarding innovative actions such as lacking finance and human resources, protection of intellectual properties and educational status of owners/entrepreneurs might be the reasons behind these results. In this regard, implications of policy makers and other institutions to encourage innovative posture of SMEs might be convenient for them to compete with their larger rivals.

Received: May, 2020

1st Revision: March, 2021

Accepted: May, 2021

DOI: 10.14254/2071-789X.2021/14-2/7

JEL Classification: L21, L26, O32

Keywords: innovation, SMEs, family-owned firms, Czechia, organizational, local, global innovativeness, succession, legal form, age