Evaluation Commercialization Challenges and Resolutions in SMEs Using ML-FCM (Case study: Sanat Prozheh Toos)

Document Type : Research Article

Authors

• Vahideh Bafandegan Emroozi ¹
• Ali Faezian ²
• Kambiz Seffati ³
• Hossein Ebrahimi ⁴
• Babak Dadakhani ³

¹ Department of Management, Faculty of Economics and Administrative sciences, Ferdowsi University Of Mashhad, Mashhad, Iran.

² Food Machineries Department, Research Institute of Food Science and Technology, Mashhad, Iran.

³ South Pars Fifth Refinery, Asalouye, Iran.

⁴ South Pars seventh Refinery, Asalouye, Iran.

10.22067/jstinp.2023.80127.1026

Abstract

Commercialization of innovative products in small and medium-sized enterprises (SMEs) faces many challenges. In this study, the factors related to the existing challenges and resolutions are identified with the help of the multi-layer fuzzy cognitive mapping (ML-FCM) method. The most effective criterion is introduced by examining the centrality. Also, the challenges and the existing resolutions to overcome these challenges are specified, and the most effective ones are determined. The present study addresses the practical experience of Sanat Prozheh Toos Company, which operates in the design and production of mechanical noise pollution control equipment (e.g., Silencers). The data is collected based on the organization's documents and experts' opinions. Research findings confirm that among the challenges of commercialization of innovative products associated with the case study, management challenge has the highest degree of effectiveness and centrality; moreover, among the ways of overcoming these challenges, organizational integration has the highest degree of centrality. Thus, the findings provide policy and management suggestions for SMEs policymakers and managers in commercializing advanced technologies.

Keywords

• Small and medium-sized enterprises (SMEs)
• Silencer
• Noise pollution
• Commercialization
• Multi-layer fuzzy cognitive mapping method (ML-FCM)

---

References

 Abetti, P.A., 2004. Government-supported incubators in the Helsinki region, Finland: infrastructure, results, and best practices. The Journal of Technology Transfer, 29(1), pp.19-40. https://doi.org/10.1023/B:JOTT.0000011179.47666.55.

Abetti, P.A., Rancourt, C.F., 2006. University incubators as agents for technology transfer and economic growth: case studies in USA, Ukraine and Finland. International journal of technology transfer and commercialisation, 5(4), pp.308-337. https://doi.org/10.1504/IJTTC.2006.013341.

Arvanitis, S., Sydow, N., Woerter, M., M., 2008. Is there any impact of university–industry knowledge transfer on innovation and productivity? An empirical analysis based on Swiss firm data. Review of Industrial Organization, 32, pp.77-94. https://doi.org/10.1007/s11151-008-9164-1.

Bafandegan Emroozi, V. and Fakoor, A., 2023. A new approach to human error assessment in financial service based on the modified CREAM and DANP. Journal of Industrial and Systems Engineering.

Bafandegan Emroozi, V., Modares, A. and Mohemi, Z., 2022. Presenting a model for diagnosing the implementation of total quality management based on performance expansion model (Case: Simorgh Rail Transportation Company). Road. https://doi.org/10.22034/ROAD.2022.319629.2007.

Chen, C.J., Chang, C.C. and Hung, S.W., 2011. Influences of technological attributes and environmental factors on technology commercialization. Journal of business ethics, 104, pp.525-535. https://doi.org/10.1007/s10551-011-0926-6.

Chiesa, V. and Frattini, F., 2011. Commercializing technological innovation: Learning from failures in high‐tech markets. Journal of Product Innovation Management, 28(4), pp.437-454. https://doi.org/10.1111/j.1540-5885.2011.00818.x.

Christoforou, A. and Andreou, A.S., 2017. A framework for static and dynamic analysis of multi-layer fuzzy cognitive maps. Neurocomputing, 232, pp.133-145. https://doi.org/10.1016/j.neucom.2016.09.115.

Christoforou, A., Garriga, M., Andreou, A.S. and Baresi, L., 2017. Supporting the decision of migrating to microservices through multi-layer fuzzy cognitive maps. In Service-Oriented Computing: 15th International Conference, ICSOC 2017, Malaga, Spain, November 13–16, 2017, Proceedings (pp. 471-480). Springer International Publishing. https://doi.org/10.1007/978-3-319-69035-3_34.

Cooper, R.G., 2011. Perspective: The innovation dilemma: How to innovate when the market is mature. Journal of Product Innovation Management, 28(s1), pp.2-27. https://doi.org/10.1111/j.1540-5885.2011.00858.x.

Datta, A., Mukherjee, D. and Jessup, L., 2015. Understanding commercialization of technological innovation: taking stock and moving forward. R&D Management, 45(3), pp.215-249. https://doi.org/10.1111/radm.12068.

Datta, A., Reed, R. and Jessup, L., 2013. Commercialization of innovations: an overarching framework and research agenda. American Journal of Business. 28, 147–191. https://doi.org/10.1108/AJB-08-2012-0048.

Daymon, C. and Holloway, I., 2010. Qualitative research methods in public relations and marketing communications, 2nd ed. ed. Routledge, New York, NY.

Dean, T., Zhang, H. and Xiao, Y., 2022. The role of complexity in the Valley of Death and radical innovation performance. Technovation, 109, p.102160. https://doi.org/10.1016/j.technovation.2020.102160.

Dehghani, T., 2015. Technology commercialization: From generating ideas to creating economic value. International Journal of Organizational Leadership, 4, pp.192-199.

Dickerson, J.A. and Kosko, B., 1994. Virtual worlds as fuzzy cognitive maps. Presence: Teleoperators & Virtual Environments, 3(2), pp.173-189. https://doi.org/10.1162/pres.1994.3.2.173.

Ellwood, P., Williams, C. and Egan, J., 2022. Crossing the valley of death: Five underlying innovation processes. Technovation, 109, p.102162. https://doi.org/10.1016/j.technovation.2020.102162.

Farimani, N.M., Ghanbarzade, J. and Modares, A., 2022. A New Approach for Pricing Based on Passengers’ Satisfaction. Transportation Journal, 61(2), pp.123-150. https://doi.org/10.5325/transportationj.61.2.0123.

Frank, C., Sink, C., Mynatt, L., Rogers, R. and Rappazzo, A., 1996. Surviving the “valley of death”: A comparative analysis. The Journal of Technology Transfer, 21, pp.61-69. https://doi.org/10.1007/BF02220308.

Hejazi, T.H. and Roozkhosh, P., 2019. Partial inspection problem with double sampling designs in multi-stage systems considering cost uncertainty. Journal of Industrial Engineering and Management Studies, 6(1), pp.1-17.https://doi.org/10.22116/JIEMS.2019.87659.

Heydebreck, P., Klofsten, M. and Maier, J., 2000. Innovation support for new technology‐based firms: the Swedish Teknopol approach. R&D Management, 30(1), pp.89-100. https://doi.org/10.1111/1467-9310.00160.

Hudson, J. and Khazragui, H.F., 2013. Into the valley of death: research to innovation. Drug discovery today, 18(13-14), pp.610-613.https://doi.org/10.1016/j.drudis.2013.01.012.

Iraji, M.S., 2019. Combining predictors for multi-layer architecture of adaptive fuzzy inference system. Cognitive Systems Research, 53, pp.71-84. https://doi.org/10.1016/j.cogsys.2018.05.005.

Jung, M., Lee, Y.B. and Lee, H., 2015. Classifying and prioritizing the success and failure factors of technology commercialization of public R&D in South Korea: using classification tree analysis. The Journal of Technology Transfer, 40, pp.877-898. https://doi.org/10.1007/s10961-014-9376-5.

Kelley, D.J. and Rice, M.P., 2002. Advantage beyond founding: The strategic use of technologies. Journal of Business Venturing, 17(1), pp.41-57.https://doi.org/10.1016/S0883-9026(00)00053-7.

Khalil Zadeh, N., Khalilzadeh, M., Mozafari, M., Vasei, M. and Amoei Ojaki, A., 2017. Challenges and difficulties of technology commercialization− a mixed-methods study of an industrial development organization. Management Research Review, 40(7), pp.745-767. https://doi.org/10.1108/MRR-08-2016-0192.

Klitsie, J.B., Price, R.A. and De Lille, C.S.H., 2019. Overcoming the valley of death: A design innovation perspective. Design Management Journal, 14(1), pp.28-41. https://doi.org/10.1111/dmj.12052.

Kotha, R., George, G. and Srikanth, K., 2013. Bridging the mutual knowledge gap: Coordination and the commercialization of university science. Academy of Management Journal, 56(2), pp.498-524. https://doi.org/10.5465/amj.2010.0948.

Lichtenthaler, U., 2005. External commercialization of knowledge: Review and research agenda. International Journal of Management Reviews, 7(4), pp.231-255. https://doi.org/10.1111/j.1468-2370.2005.00115.x.

Madrid-Guijarro, A., Garcia, D. and Van Auken, H., 2009. Barriers to innovation among Spanish manufacturing SMEs. Journal of small business management, 47(4), pp.465-488. https://doi.org/10.1111/j.1540-627X.2009.00279.x.

Markham, S.K., Ward, S.J., Aiman‐Smith, L. and Kingon, A.I., 2010. The valley of death as context for role theory in product innovation. Journal of Product Innovation Management, 27(3), pp.402-417.https://doi.org/10.1111/j.1540-5885.2010.00724.x.

Modares, A., Bafandegan Emroozi, V. and Mohemmi, Z., 2021. Evaluate and control the factors affecting the equipment reliability with the approach Dynamic systems simulation, Case study: Ghaen Cement Factory. Journal of Quality Engineering and Management, 11(2), pp.89-106. https://dorl.net/dor/20.1001.1.23221305.1400.11.2.1.6.

Modares, A., Farimani, N.M. and Emroozi, V.B., 2023. A vendor-managed inventory model based on optimal retailers selection and reliability of supply chain. Journal of Industrial and Management Optimization, 19(5), pp.3075-3106. https://doi.org/10.3934/jimo.2022078.

Modares, A., Motahari Farimani, N. and Bafandegan Emroozi, V., 2023. Applying a multi-criteria group decision-making method in a probabilistic environment for supplier selection (Case study: Urban railway in Iran). Journal of Optimization in Industrial Engineering. https://doi.org/10.22094/joie.2023.1950386.1929.

Modares, A., Farimani, N.M. and Emroozi, V.B., 2022. Developing a Newsvendor Model based on the Relative Competence of Suppliers and Probable Group Decision-making. Industrial Management Journal, 1, pp.115-142. https://doi.org/10.22059/imj.2022.331988.1007872.

Modares, A., Motahari Farimani, N., Emroozi, V.B., 2023. A new model to design the suppliers portfolio in newsvendor problem based on product reliability. Journal of Industrial and Management optimization, 19(6), pp.4112-4151. https://doi.org/10.3934/jimo.2022124.

Nevens, T.M., 1990. Commercializing technology: what the best companies do. Planning review. 18(6), 20–24. https://doi.org/10.1108/eb054310.

Palmer, C. and Bolderston, A., 2006. A brief introduction to qualitative research. Canadian Journal of Medical Radiation Technology, 37(1), pp.16-19.https://doi.org/10.1016/S0820-5930(09)60112-2.

Pellikka, J. and Virtanen, M., 2009. Problems of commercialisation in small technology-based firms. International Journal of Entrepreneurship and Innovation Management, 9(3), pp.267-284. https://doi.org/10.1504/IJEIM.2009.025143.

Rajabi, S., Roozkhosh, P. and Farimani, N.M., 2022. MLP-based Learnable Window Size for Bitcoin price prediction. Applied Soft Computing, 129, p.109584. https://doi.org/10.1016/j.asoc.2022.109584.

Roozkhosh, P., Kazemi, M., 2022. Application of Internet of Things in Green Supply Chain and Investigating the Effective Factors for Selecting a Green Supplier: A Case Study: Mashhad Rubber Factory. Supply Chain Managmemt Journal.24(75), pp.61-73.  [in Persian].

Roozkhosh, P., Pooya, A. and Agarwal, R., 2022. Blockchain acceptance rate prediction in the resilient supply chain with hybrid system dynamics and machine learning approach. Operations Management Research, pp.1-21.https://doi.org/10.1007/s12063-022-00336-x.

Roozkhosh, P. and Motahari Farimani, N., 2022. Designing a new model for the hub location-allocation problem with considering tardiness time and cost uncertainty. International Journal of Management Science and Engineering Management, pp.1-15. https://doi.org/10.1080/17509653.2022.2089261

Sharma, N., 2005. Services Marketing in Asia: Managing People, Technology and Strategy. Australasian Marketing Journal, 13(2), p.75. https://doi.org/10.1016/S1441-3582(05)70080-X.

Stander, H.M. and Broadhurst, J.L., 2021. Understanding the Opportunities, Barriers, and Enablers for the Commercialization and Transfer of Technologies for Mine Waste Valorization: A Case Study of Coal Processing Wastes in South Africa. Resources, 10(4), p.35. https://doi.org/10.3390/resources10040035.

Stenroos, L.A. and Lehtimäki, T., 2013. Building up a firm’s commercialisation competence: from product concept to the first reference. International Journal of Technology Marketing 24, 8(2), pp.177-196. https://doi.org/10.1504/IJTMKT.2013.054081.

Waters, R. and Smith, H.L., 2002. Regional development agencies and local economic development: scale and competitiveness in high-technology Oxfordshire and Cambridgeshire. European Planning Studies, 10(5), pp.633-649.  https://doi.org/10.1080/09654310220145369.

White, M.A. and Bruton, G.D., 2010. The management of technology and innovation: A strategic approach. Cengage Learning, Mason, OH.