Management and Innovation in Micro and Small Enterprises: A Research Proposal through Structural Equation Modeling.

Micro and Small Enterprises have emerged as an important alternative for the generation of jobs and income, mainly in countries that present serious market failures for the creation of productive jobs. However, the lack of commercial and managerial skills, inadequate access to markets, as well as the absence of an entrepreneurial culture has led to a high level of failure in these ventures. Additionally, the current competitive scenario has been increasingly based on innovation, responsible for the destruction of traditional competitive barriers, requiring a new approach on the part of Micro and Small Enterprises to be able to remain in the market sustainably. Accordingly, this research aims to determine the influence that business management has on the degree of innovation of Brazilian Micro and Small Enterprises through Structural Equation Modeling. As a theoretical contribution, the present investigation may point to statistical evidence that may support a causal inference between business management, understood in the present investigation as a decision process on strategic and operational aspects of a business, and the innovation capacity of companies. Furthermore, this research can provide important practical contributions by highlighting the relevance that business management has for Micro and Small Enterprises, also pointing to the need for Micro and Small Enterprises to adopt systematic business management practices that raise their potential concerning the development of innovations and the maintenance of a sustainable competitive position. [ABSTRACT FROM AUTHOR]