Innovation and Creativity in SMEs

1External Environment of an SME: From Determinism to Strategic Innovation

1.1. Introduction

Regardless of their size, companies are constantly confronted with changes in their external environment. These changes concern their macro environment, on which they have no direct influence and at multiple levels (political, technological, economic, social, societal, ecological, etc.). They also concern their direct environment, mainly industry actors, which constitutes the reference framework for analyzing the company’s business and participating in defining its competitive space.

In principle, these changes are a source of opportunities as well as threats, and can put existing companies at risk. By changing the rules of the competitive game, the sources of profitability in a sector, changing market size, customer expectations, or even encouraging the creation of alternative offers, these changes can then lead to a crisis. They also allow new entrants into a market and radically change the rules of the game. The digital revolution, for example, has proved to have immense potential for many start-ups to enter into a multitude of markets at a fast pace. This then leads to players that were previously firmly established becoming destabilized.

Faced with changes in their environment, particularly those that closely affect their sector of activity, companies are expected to react. These can be operational adjustments, or even a race to achieve operational efficiency, through management ...