Rural innovation for SME: Empirical Insights in network dynamics and challenges faced by companies in Vestland
Abstract
Norway’s diverse landscape is characterized by stunning fjords, towering mountains,
and numerous rural areas with unique business challenges and opportunities. This
master’s thesis focuses on the region formerly known as Sogn og Fjordane County, now
incorporated into Vestland as of January 1, 2020. The choice of this specific region
stems from my firsthand experience with companies in the area during my internship at
Sogn og Fjordane Næringsråd. Companies operating in rural areas face several unique
challenges every day. Among these challenges are transport problems, which can be
caused by poor infrastructure or the complete absence of it. Furthermore, these
companies often experience a lack of resources, whether in the form of qualified labor,
limited suppliers, or limited raw materials.
The existing literature often separates rural location challenges from network theory
discussions. This thesis uncovers new insights by extracting essential factors
influencing innovation in rural contexts. This will be achieved by combining networks
and rural theory. This approach will shed new light and better understand the challenges
and opportunities for innovation for companies in rural areas. Therefore, this thesis
explores what companies in the former Sogn og Fjordane region perceive as drivers and
barriers to innovation. To shed light on this matter, a qualitative approach and more
determined interviews were used. Six companies from various industries based in
different parts of former Sogn og Fjordane were interviewed.
Based on the literature and the findings, recruiting qualified labor if the company is
located in a rural area is a significant problem. Still, this study also shows that this
problem might not only be a problem. While there is trouble getting qualified people,
the companies benefit from being rural in the form of employees who stay for a long
time. The research also reveals that certain factors are more important than others and
affect innovation more. However, there is also a difference between industries.
Description
Master of Science in Business
HVL Business School