Innovativeness and culture: How time orientation shapes the perceptions of owners and managers

Abstract of the study

This study provides a cross-cultural perspective to better understand how time orientation shapes the perceptions of owners and managers of small and medium-sized enterprises (SMEs) in tourism regarding their ability to innovate. The existing literature is summarized and the internal and external innovativeness of SME owners and managers is determined. By distinguishing between short-term and long-term oriented cultures and comparing data from Australian and German-speaking (Germany, Austria, Switzerland - DACH country cluster) SMEs, the results confirm that perceptions of innovativeness vary between cultures.

The results for SMEs in short-term oriented cultures show a stronger appreciation for customer orientation, the achievement of future profits and incentives for employees. In contrast, SMEs in long-term oriented cultures place a higher value on accessible knowledge, willingness to learn and adaptation. To effectively manage innovation capability in SMEs, a balanced approach is proposed that considers both short- and long-term factors. Given the scarce resources of SMEs, it is also suggested that owners and managers first focus on strengthening their internal organizational innovation drivers to improve their innovation capability. The study also discusses implications for tourism policy, offers recommendations for innovation research and points out the limitations of the study.

Key findings of this study

• Cultural differences in innovation perceptions: The study confirms that perceptions of innovation capability among SME owners and managers in tourism vary according to cultural time orientation.
• Focus of short-term cultures: In short-term oriented cultures (e.g. Australia), greater emphasis is placed on customer orientation, the generation of future profits, employee incentives, market structure and technological progress.
• Focus of long-term cultures: In long-term oriented cultures (e.g. DACH countries), SMEs value accessible knowledge, willingness to learn, adaptation and individual skills of owners more highly.
• Prioritize internal innovation drivers: Due to limited resources, it is recommended that SME owners focus on strengthening their internal organizational innovation drivers first.
• Balanced approach necessary: For effective innovation management in SMEs, a balanced approach that considers both short- and long-term factors is advisable.