EXPLORING THE FACTORS THAT INHIBIT AND PROMOTE SMALL

EXPLORING THE FACTORS THAT INHIBIT AND PROMOTE SMALL

BUSINESS OWNER ENGAGEMENT WITH FEDERAL INNOVATION

Chapter 1: Introduction

Introduction

agencies and laboratories work more successfully with small businesses, non-traditional

performers, and diverse commercial partners for prototyping, research and development (R&D)

efforts, and other methods of creating new capabilities and solutions. The research addressed a

gap in the literature on the topic. Through the study, the researcher produced a relevant inventory

of factors that can be further examined for their influence on small business and federal

acquisition manager utilization of and engagement with non-FAR federal innovation pathways

and other government innovation processes.

Indicators of small business owner engagement and success with federal contracts have

declined continuously in the past decade, with less than half the number of small businesses

receiving government contracts in 2022 compared to 2010 (HigherGov, 2023). The audience for

managers and small business owners as those that promote or inhibit their engagement with

operators and warfighters. The researcher follows with an overview of the problem statement and

discussion on the purpose, then presents the research questions to be addressed. Next, the

researcher provides an abbreviated literature review followed by a discussion of the study’s

methodology before closing with a short conclusion.

Statement of the Problem

The problem addressed through this study is low engagement by small business owners

in the defense industrial base and with defense contracting opportunities for potential funding or

award of a contract, especially at the early stages of prototyping and research and development.

In the fiscal year 2020, the DoD spent $439.4 billion on contracts. Government contracting

market research firm HigherGov reported a decade-long decline in small business owner

Acquisition Research Journal, 2022; Defense Acquisition Research Journal, 2023). Non-FAR

federal innovation pathways, such as PIAs, include federal funding mechanisms established, in

part, to lower the barrier to entry for small business owners to engage with federal acquisition

opportunities, especially those related to innovation (Defense Acquisition University, 2022).

There is a gap in the literature exploring the factors that small business owners and

innovation pathways in the interest of national security, defense, and intelligence. Practical

consideration of how different factors correlate to important variables, such as success rates for

small businesses that engage with PIAs or other non-FAR federal innovation and how

technology transfer or transition metrics change for federal engagements that also engage, cannot

be fully researched without an inventory of these factors. While a gap persists on this topic, other

relevant recent research has cited hesitancy of federal acquisition managers to engage with

nonFederal Acquisition Regulation (FAR) pathways for procurement and observed the effect of

the nation’s crippled ability to rapidly respond to national security, defense, and intelligence

threats across important technology and process areas, with adversarial interests outpacing US

innovation on the battlefield and throughout operations critical to national security (Calafut et al.,

2021; Defense Acquisition Research Journal, 2021; Miller et al., 2022; National Research

US Code (15 USC §3715 and 10 USC §4124) authorizes PIAs, with an underlying intent

to help federal research labs and national security, defense, and intelligence interests rapidly

research, design, prototype, and develop novel solutions and capabilities, often with small

business owners and innovators outside of traditional Federal Acquisition Regulation (FAR)

research has indicated that culture and limited knowledge of positive outcomes may be

small business owner engagement with federal innovation from federal innovation leaders (FILs)

and small business owners (SBOs) with experience working with PIAs or other non-FAR

funding pathways. The reasons for using this form of data to generate data was to identify and

develop a preliminary understanding of the self-identified factors, from the perspectives of small

business owners and federal acquisition professionals, which inhibit or promote engagement

from and with small business owners on innovation efforts through the federal acquisition

system and the defense industrial base (Atlantic Council, 2022; Calafut et al., 2021; Defense

Acquisition Research Journal, 2021; DEFENSEWERX, 2022; Miller et al., 2022; Miller, 2017;

Weinig, 2019).

and small business owners to engage with or avoid engaging with government innovation

positively with individuals’ perceptions of threats or risks and perceptions about their ability to

cope with such risks (Janmaimool, 2017). The perceptions of individuals working in federal

acquisition regarding risks they perceive associated with non-FAR and non-traditional funding

mechanisms were explored and considered in the context of motivation to share knowledge

about such tools and foster organizational learning. Threat perception is a motivating factor for

behavior when the individual’s external environment is perceived to be at risk of negative

consequences in the absence of potential behaviors (Janmaimool, 2017). Federal acquisition

professionals working in large government agencies and settings may have limited access to

information on non-traditional funding mechanisms. The role of government acquisition

professionals’ motivation to seek out this information and to contribute to organizational learning

organizational learning and motivation. The relationships among institutional learning, external

environment, and organizational capacity and their interrelationships with knowledge transfer

study. In this qualitative study, the researcher utilized exploratory and open-ended questions to

examine the factors identified by both groups with the intent of developing an inventory of

factors that inhibit or promote managers engagement with non-FAR innovation pathways for

government contracting and problem-solving (Dongming, 2020; Janmaimool, 2017; Nonaka,

1994).

Nature of the Study

For this study, the researcher utilized a qualitative research approach supported by virtual

and in-person interviews with participants. The qualitative approach was selected because the

exploratory nature of data collection supported the researcher’s need to collect self-identified

factors to form an inventory of those that promote and inhibit motivation to engage with nonFAR

The researcher used purposive sampling followed by snowball sampling to identify and recruit

22 federal innovation leader (FIL) participants and 12 small business owners (participants) from

each exploratory case study group for this study based on their status as a former or current

stakeholder with a non-FAR federal innovation program. Qualitative semi-structured interviews

were conducted with each participant by the researcher to encourage open dialogue and the

business hours, weekend options, and traditional core business hours, to permit time-constrained

participants an efficient way to contribute data to the study. The collected qualitative data were

analyzed through thematic coding and analysis to identify themes and classify factors into those

emerging themes and categories.

Research Questions

The research questions to be addressed are as follows:

operators and warfighters?

RQ2. What barriers did small business owners identify as inhibiting their interest in

participating in non-FAR pathways to government contracting opportunities?

RQ3. What steps did small business owners identify as those they believed would lead to

greater interest in participating in non-FAR pathways to government innovation funding

opportunities?

Definition of Key Terms

In this section, the researcher briefly describes the key terms used in this study. The

references and sources used to inform key definitions are also provided.

Federal innovation leader. A government employee responsible for leading or supporting

and problem-solving (Weinig, 2019).

Innovation. A range of activities, solutions, concepts, goods, and tools that can be newly

developed or used in a novel way that meets an unmet need or more efficiently meets a need than

prior solutions (Blank, 2019; Weinig, 2019).

Non-FAR innovation pathway. Federal acquisition pathways governed outside Federal

prototype development, ideation, or new concept and approach development (Defense

Acquisition Research Journal, 2023).

Other Transaction Authority (OTA). A non-FAR acquisition and procurement mechanism

that is available for use by government entities and federal acquisition professionals

(Defense Acquisition Research Journal, 2023; Weinig, 2019).

Partnership Intermediary Agreement (PIA). A non-FAR acquisition and procurement

mechanism available for use by government agencies with federal research laboratory

designations and partnership with non-profit entities with goals including the promotion of

Administration, 2016).

Small business engagement. Participation by a small business owner in a government-

driven acquisition or collaborative process through traditional government channels, such as

Sam.gov, and non-traditional and non-FAR acquisition or funding channels, such as with a PIA,

CRADA, or OTA (US Small Business Administration, 2016).

literature presents the cultural challenges and risk-aversion tendencies encountered by large,

designed to promote engagement with small business interests. Additionally, the researcher

identified the risk aversion theme relevant to the small business owner perspective through a

literature review. Finally, the disjointed nature of communicating effectively from the

government demand side to the small business owner supply side emerged as a theme in the

literature review.

An overview of the literature search strategy implemented to identify, vet, and integrate

scope of the literature review, areas of gaps, and search mechanisms deployed to collect the

guiding principles that affect the researcher’s analysis and conclusions. Next in the chapter, the

researcher presents the key themes identified in the literature and delivers analysis and

discussion relevant to the topic and research of the study, contrasting, comparing, and

The researcher conducted an exhaustive search on the research topic to identify relevant

sources from the literature. As primary sources were developed and analyzed and themes

emerged, the researcher expanded the search to include recent scholarly work relevant to these

themes. Recent literature from scholarly, peer-reviewed sources was prioritized for analysis.

Trevecca’s Waggoner Library search databases served as a reliable tool to support the literature

Ultimate allowed for searching by key search terms, using Boolean search methods, filtering by

peer-reviewed status and literature type, author, and specific publication source.

Additionally, the researcher used ResearchGate and Google Scholar to identify

potentially relevant studies and literature. ResearchGate served as a practical search tool to

identify work by specific authors, on key search terms, and from specific date ranges while also

allowing quick access to secondary works citing the authors searched. Google Scholar provided

filter for peer-reviewed materials and search specific publication types, such as journal articles,

emergent themes based on each source’s topic, focus area, methodology, limitations, findings,

this study, crossed into implications for the other themes.

inhibit or promote managers’ engagement with non-FAR innovation pathways for government

Three key themes emerged in the review of the literature. Through the theme of a culture

Finally, the theme of collaboration, awareness, and navigation revealed that collaboration

awardees throughout the supply chain and innovation ecosystem may play an important role in

attaining project goals. Across all themes, leadership that champions organizational learning and

innovative culture can serve as a mitigating factor for many of the potential negative outcomes

associated with federal acquisition and its successful project outcomes (Adam, 2022; Euchner,

2017; Semenets-Orlova et al., 2023).

Culture of Innovation and Change

motivation of the demand-side federal innovation leaders’ population, organizational learning

large organizations.

Large or bureaucratic organizations and public agencies may adapt slowly and struggle to

Government entities, including civilian workers and acquisition professionals, can encounter an

organizational context that stifles change or makes adopting and implementing new approaches

slow, challenging, or difficult (Miller, 2017; Miller et al., 2022). An analysis of government

records on DoD innovation initiatives revealed that most participating companies had existing

ties to the defense industry and were not innovative outsiders (Bresler & Bresler, 2020).

better alignment of those ideals, and effective communication plays an integral role in such

(Garcia et al., 2018; Rantala et al., 2021). Leaders supporting federal or government acquisition

functions and seeking to integrate new approaches can utilize strategic planning along with

aligned goal setting as a deliberate tool to promote organizational learning and sound culture

(Kools & George, 2020; Rantala et al., 2021). Research also indicated that, in addition to

with information sharing and knowledge creation, support change management efforts and

Huitink, 2018). Given their novelty and youth compared with legacy federal acquisition tools

Ryan et al., 2022). Large aerospace and defense industry enterprises and corporations, frequently

awardees of traditional FAR-based defense and government contractors, underperform global

technology development have created an increasing demand for defense and security innovation

(Taksas, 2019).

Decades of mergers among traditional government contractors have consolidated the

defense industry, leading to shrinking competition throughout the defense industrial base (Carril

& Duggan, 2020; Edward, 2023; Adjei & Hendricks, 2022). Meanwhile, government bid

solicitations can present bias toward incumbent contractors and large corporations through

eligibility criteria that prove inhibitive for smaller businesses (Bannerman, 2018; Goyal, 2019),

leading to operational environments in which federal acquisition professionals are accustomed to

working with well-known large corporations (Adjei & Hendricks, 2022; Edward, 2023). Public

a correlation between the death of a federal acquisition manager and the reduction of positive

innovation outcomes for federal contracts, indicating weaknesses among operational

redundancies and in the needed culture of information-sharing with government agencies. These

insights echo findings from researchers on the importance of communication in promoting ideal

organizational culture and learning in the government agency or large organization setting (Ahn

& Hong, 2019; Kroll & Pasha, 2021; Mergel, 2018; Miller et al., 2022; Omazic et al., 2020).

Research indicates that collaboration and proactive management among internal stakeholders to

require reduced competitive requirements to achieve the goals of engaging small and other

disadvantaged business types (Dimand et al., 2023; Harvey, 2019; Joshi et al., 2018). Chen et al.

(2021) identified that certain public procurement frameworks can inadvertently incentivize small

businesses to avoid scaling and, therefore, lose access to public procurement opportunities

Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs

championed values of diversity, is correlated to the frequency at which non-traditional or

disadvantaged businesses receive contract awards (Joshi et al., 2018). The social and economic

goals introduced into requirements on federal acquisition managers can create a conflicting set of

for federal agencies. Emerging techniques ranging from the application of game theory to

acquisition goals to organizational culture is needed to support employees and acquisition

professionals in such cases of uncertainty (Kroll & Pasha, 2021; Miller et al., 2022; Omazic et

government agencies can encounter cultural and systemic operational challenges (Kramer &

Wagner, 2019; Mergel, 2018; Miller et al., 2022; Suits, 2021; Robertson & Bonner, 2020).

While leaders, managers, and operators may appreciate the potential benefits of integrating

industry-standard, agile practices, such agencies operate as slow bureaucracies with complex and

and the integration of new practices (Suits, 2021; Miller et al., 2021; McQuade et al., 2019;

grounded in consideration of the professionals and practitioners involved in related processes

Social, economic, and diversity goals can create an anchor for government agencies,

operators, and acquisition professionals. The alignment of practices to those goals can be

creative thinking (Adam, 2022; Euchner, 2017; Semenets-Orlova et al.). Research indicates that

alignment of goals can improve technology transfer and other R&D outcomes for innovation

initiatives (Corsi et al., 2021; Hyanghee Lee et al., 2020). A culture that actively encourages and

promotes knowledge sharing as part of employees’ innovative work behavior can improve the

smaller firms to be able to fully compete for contracts (Chen et al., 2021). Public procurement

target improvements in goal economic areas, especially when aligned with a comprehensive

strategy for regional innovation (Pukhova et al., 2021; Zabala-Iturriagagoitia, 2022). Contract

outcomes can be improved by facilitating awareness among project performers, including

contractors and subcontractors. Acquisition professionals may be able to leverage research

findings on the positive impacts of collaboration among performers and supply partners to

increase awareness of demand-side needs and improve contract outcomes.

to reach small businesses for reasons that include unclear communication and limited awareness

2018; Garcia et al., 2018; Orser et al., 2019). Small business owners may not have an awareness

of the existence of programs designed to lower the barrier to entry for working with and

designing prototypes or new technologies for federal government customers (Duddy et al., 2020;

2018; Saastamoinen et al., 2018; Speciale, 2022). Private companies with deep government

customer representation among their portfolios can gain key domain knowledge, insights, and

positive value creation, which can serve as a factor to promote small business decision-maker

engagement with innovation award and contract funding opportunities and reduce risk-aversion

(Fayos et al., 2022; Josephson et al., 2019).

Centralized digital databases of potential contract performers can improve procurement

contract opportunities to small business performers on the supply side (Mpehlo & Mudogwa,

2020). US federal and defense research has consistently sought to better understand technology

transfer, technology transition, and small business decision-maker engagement with federal

procurement processes and systems (Defense Acquisition University, 2021; Defense Acquisition

University, 2022; Swearingen & Dennis, 2009). Informed navigation of government contracting

and funding opportunities by small business owners and managers can be promoted through

networking and information sharing, such as across industry verticals or through university or

government collaborations, leading to increased participation by small business decision-makers

with government funding opportunities (Duddy et al., 2020; Mpehlo & Mudogwa, 2020; Storz et

al., 2022).

well-known and commonplace FAR government contracting options, typically with large prime

contractors (Weinig, 2019). Communicating to raise awareness that funding opportunity exists

for small business owners to solve government problems or technology needs can reduce the

likelihood of risk aversion that can inhibit small business owners from participating in

that champions organizational learning and knowledge sharing may be better positioned to

innovation ecosystem (Adam, 2022; Euchner, 2017; Semenets-Orlova et al., 2023).

theme of a culture of innovation and change emerged in research and studies of large government

throughout the defense industrial base and small business organizations. Leaders who champion

organizational learning and a culture of innovation may be better positioned to facilitate

improved outcomes in acquisition practices as well as to increase the adoption of newer funding

pathways such as PIAs, CRADAs, and OTAs (Adam, 2022; Euchner, 2017; Miller et al., 2022).

The risk aversion theme emerged through a review of the literature highlighting high

2022), while evidence has not been found in newer innovation-focused procurement tools such

as OTAs (Weinig, 2019).

Meanwhile, large companies enjoy unique capabilities to shape contract terms and

competitive structure in ways that small businesses do not (Edwards, 2019; Heese &

PerezCavazos, 2019; Sikombe & Phiri, 2021). Although small business owners can experience

private and public sector portfolio mix, small business owners can avoid engaging in defense and

making by government representatives, and limited value creation (Harland et al., 2019; Kelly &

Sensenig, 2019; Zhong et al., 2020). The theme of awareness and navigation identified in the

literature reveals that awareness and collaboration, both between industry and government and

between industry contractors or awardees throughout the supply chain and innovation ecosystem,

may play an important role in attaining project goals (Brunjes, 2022; Dutse et al., 2021; Hoppe &

Schmitz, 2021). Additionally, private companies and small business organizations or owners who

cultivate defense business government customers and relationships can develop deep domain

knowledge that promotes competitive advantage, insights, and broader value creation across

company portfolios, all of which can mitigate small business owner or decision-maker risk-

aversion (Fayos et al., 2022; Josephson et al., 2019).

Across all themes, leadership that champions organizational learning and innovative

culture can act to mitigate many of the potential negative outcomes associated with or perceived

outcomes by permitting managers greater freedom over decisions and innovation project

outcomes (Kelley & Lee, 2010). Large organizations such as federal and defense agencies can

have complex and highly bureaucratic organizational cultures that create challenges for

organizational learning and innovation of both organizational operations and the development of

new approaches, processes, and technologies Euchner, 2017; Hsieh et al., 2020). The high levels

of complexity and lack of clarity in defense acquisition processes can promote decision-making

marked by short-sighted consideration and a lack of strategic considerations for impacts to the

organizational learning, communicate with clarity, and model program or project outcomes

aligned to the mission and organizational values can improve the outcomes of new approach

adoption (Beer & Bailey, 2023; Omazic et al., 2020).

Chapter 3: Methodology

Introduction

business owners and federal acquisition leaders, to gather qualitative data related to the factors

that inhibit and promote collaboration between the case study populations in federal innovation

funding pathways.

which is an exploratory qualitative multiple-case study method founded on an interpretivist

case study group (Yin, 2014). A description of the population is also presented, including size,

relevant characteristics, and appropriateness to the study. The researcher also discusses the

sampling guidelines proposed to identify the two case study interview groups and meet

saturation (Nir, 2018). Next, the researcher discusses instrumentation, including the

collected data and the steps to be employed in the process to scrub the data and address the

and the delimitations and their underlying rationale and relation to the existing literature, the

grounding conceptual frameworks incorporated into the study, problem and purpose statements,

and research questions (Dongming, 2020; Janmaimool, 2017; Maslow, 1943; Nonaka, 1994).

The researcher then presents ethical assurances and disclosures, including confirmation that data

(IRB) of Trevecca University and the ethical considerations accounted for through the process of

provides a summary of the critical points pertaining to research methodology and transitions into

the upcoming discussion of Chapter 4.

The researcher utilized a qualitative exploratory case study method founded on an

for the research due to the need to explore the research question factors in both important case

study populations where limited data exist to examine through quantitative studies (Puyvelde,

2018). The data collection method of conducting live semi-structured interviews and collecting

artifacts from participants was selected for use to gather narrative descriptions and artifacts from

researcher to make sound use of knowledge-producing potentials of dialogue by allowing much

through the gathering of artifacts (Brinkmann & Kvale, 2018). Semi-structured interview

protocols allowed for a structured interview script with opportunities for the researcher to delve

into emerging themes and ideas surfaced by participants and gather more in-depth information

relevant to the research topic (Cramer, 2018; Thyer, 2009).

Population and Sample

The exploratory case study group participants for this study were purposefully drawn

from two over-arching populations: small business owners (SBOs) and federal innovation leaders

(FILs). The researcher used purposive sampling to select at least 20 participants from each

exploratory case study group to ensure saturation. The US Small Business Administration

estimated over 33 million small businesses in the US as of March 2023 (US Small Business

2023). These federal acquisition professionals manage approximately $209.7 billion in

government research and development (R&D) spending relevant to the proposed research topic

(Congressional Research Service, 2023).

The researcher purposefully identified an initial target list of 20 participants for each

exploratory case study group from these broader populations using guidelines of the potential

as a small business owner or federal acquisition professional, and their interest in voluntary

were initially identified through company customer relationship management (CRM) data

warehoused by DEFENSEWERX, the company that employed the researcher and had granted

permission. The researcher identified SBOs who had worked with DoD and other federal agency

funding opportunities, as well as federal acquisition professionals employed by DoD and other

federal agencies for the FIL group. The researcher successfully scheduled 15 initial participants

from the FIL case study group and five from the SBO case study for semi-structured qualitative

interviews. The researcher used snowball sampling to elicit additional participants from each of

the exploratory case study groups to ensure saturation is met for the study based on the primary

elements of base size, run length, and new information (Guest et al., 2020; Nir, 2018). To ensure

that scheduling conflicts, lack of interest, and unexpected participant drop-out or no-show

sampling followed by snowball sampling to identify at least 40 potential participants from each

exploratory case study group, ensuring adequate interviews could be scheduled and conducted

et al., 2020; Nir, 2018). Ultimately, the researcher conducted live semi-structured interviews with

22 FILs and 12 SBOs.

Instrumentation

The researcher used an interview protocol script to guide the guided semi-structured

qualitative interviews with participants from each of the two exploratory case study groups and

addressing each research question in stages and prompting artifact disclosure. During the

participant and listened for key areas, based on the interview protocol, to probe more deeply in

instances where a participant had presented relevant information on an emerging theme, concept,

or idea. The semi-structured interview protocol scripts were designed to advance the

socialscientific method of research to gain information around a standard set of discussion

prompts and engage participants in a bilateral process of constructing meaning through the

conversation and to gather artifacts to support triangulation in data collection (Parcell & Rafferty,

2018).

The semi-structured interview method of data collection permitted the researcher to learn

PIAs, and OTAs, gain deep context on their roles and prior experiences with government

innovation funding and processes, and identify factors that shaped the experiences and behavior

related to innovation funding of participants from each exploratory case study group. The

following up on whatever angles are deemed important” (p. 579). The researcher built upon the

qualitative semi-structured interview protocol script and discussion guide employed by

Matshwane and Marnewick (2024) with permission from the author. The researcher was granted

written permission from the study’s researchers to reference and cite the study and their

instrument for this study, as shown in Appendix D.

with non-FAR innovation pathways such as innovation events, prize challenges, or prototype

upon to address the study’s three research questions and address the current gap in the literature

on these factors (Atlantic Council, 2022; Calafut et al., 2021; Defense Acquisition Research

Journal, 2021; DEFENSEWERX, 2022; Miller et al., 2022; Miller, 2017; Weinig, 2019). In

designing this study, one intention of the researcher was to develop an inventory of factors

through the process of data collection and thematic analysis, which could serve as a basis for

future research into related topics. The two exploratory case study groups identified for the study

consisted of individuals with professional experience with non-FAR federal innovation from

either the small business or the government acquisition perspective. Both case study groups

represent populations that serve as primary stakeholders in modern non-FAR innovation

pathways that engage in unique and distinct stages of the process of working non-FAR federal

To address the core research problem and present practical business improvement

and motivation, and examining those factors in the context of the conceptual framework to

develop practical business improvement recommendations for agencies and acquisition

professionals implementing federal innovation policies and practices. The interview participants

from the SBO population were purposefully selected with consideration to their direct non-FAR

federal innovation experience and, therefore, their ability to provide relevant data on the research

questions. The interview participants from the FIL case study group were likewise selected with

consideration to their direct experience managing, utilizing, or operating with a non-FAR

that informs the research problem of interest. Among the government interview participants,

individuals were purposefully considered from a range of professional and career areas expertise,

including legal, contracting, compliance, and project management.

Ethical Assurances

Board (IRB) of Trevecca Nazarene University prior to the commencement of any participant

recruitment or data collection. Additionally, the researcher deployed ethical considerations

during the process of data collection as well as data storage (Tomas & Bidet, 2023). Qualitative

semi-structured interviews were conducted in a digital Zoom format from a private location that

inhibited others from hearing the discussion. Each Zoom link for each participant interview was

with a United States Partnership Intermediary Agreement (PIA) partner organization and

disclosed this information to each recruited study participant.

Summary

contracts, especially at the early stages of conceptualization, prototyping, and research and

engagement by small business owners with federal innovation funding opportunities through two

exploratory case study groups, small business owners and federal acquisition leaders, to gather

data related to the factors that inhibit and promote collaboration between the case study

populations in federal innovation funding pathways.

In this chapter, the researcher first presented the proposed study’s research methodology

and design, which is an exploratory qualitative multiple case study method supported by artifact

semistructured interviews of participants from each case study group (Yin, 2014). The researcher

characteristics, and appropriateness to the study, and discussed the proposed sampling guidelines

for the two case study interview groups to ensure the collected qualitative data meets saturation

(Nir, 2018). Next, the researcher discussed instrumentation, and the semi-structured interview

the semi-structured exploratory case study interviews (Ivey, 2022). The researcher detailed the

process used for coding, thematic identification, and thematic analysis of the study’s gathered

qualitative data gathered, as well as the process for conducting thematic analysis of the collected

artifacts and the process used to address the research problem (Braun & Clarke, 2006).

corresponding rationale; described the limitations of the study and steps proposed to mitigate the

limitations; and the delimitations and their underlying rationale and relation to the existing

purpose statements, and research questions (Dongming, 2020; Janmaimool, 2017; Maslow, 1943;

Nonaka, 1994). The researcher then presents ethical assurances and disclosures, including

confirmation that data collection did not commence prior to receipt of approval from the

Institutional Review Board (IRB) of Trevecca University and the ethical considerations

accounted for through the process of data collection, management, and data storage (Tomas &

Bidet, 2023). In the next chapter, the researcher presents the data that was collected and analyzed

through the study from each exploratory case study group and discusses thematic analysis.

The researcher conducted a qualitative exploratory case study that incorporated the

execution of live semi-structured interviews to gather trustworthy data from qualified

participants. Data gathered from 34 live semi-structured qualitative interviews was analyzed to

explore the factors perceived to inhibit and promote the engagement by small business owners

identified saturation and thematic consistency at 12 interviews for the small business owner

(SBO) group and 22 for the federal innovation leader (FIL) group. For the SBO group,

participants selected for the study were current or former small business or startup owners,

than 500 employees (US Small Business Administration Office of Advocacy, 2023). For the FIL

group, the researcher used purposive sampling to identify initial individuals who served as

enlisted personnel within a federal agency or military branch or government employees within a

federal agency with at least five years of experience in a role that granted access to the use of

inclusion in the study included contracting officer, attorney, commander, program manager,

sampling was used to identify and recruit subsequent study participants who met the purposive

requirements based on recommendations and referrals from initial interview participants.

The researcher composed a list of 38 initial target individuals for the exploratory case

study group consisting of 20 SBO individuals and 18 FIL individuals. Each of these individuals

received an invitation by email to participate in the study. The 14 participants who accepted the

invitation were scheduled to interview with the researcher. Eleven of the initial participants

facilitate the growth of the participant target list to a total of 65 SBO and FIL individuals

manufacturing, finance, artificial intelligence, consulting, cybersecurity, and bioengineering as

well as a diverse range of Department of Defense (DoD) branches and other federal agencies. All

34 participants resulting from the purposive and snowball sampling voluntarily signed the

thematic analysis using an interpretivist approach to the qualitative data gathered through live

with the researcher after the live interview to provide additional artifact data. The live

semistructured interview data collection method and gathering of artifacts from participants

producing potentials of dialogue by allowing much more leeway for following up on angles

deemed appropriate while triangulating data collection through the collection of artifacts

(Brinkmann & Kvale, 2018).

Participants from the FIL group were presented with questions to address RQ1, and the

SBO group was presented with questions designed to address RQ2 and RQ3. The questions

presented to both populations within the exploratory case study group gathered data to address

innovation pathways while illuminating strategic considerations by each group when considering

interviews helped narrow down common opportunities and benefits associated with non-FAR

federal innovation. Additionally, interview questions probed into strategic areas of challenge

associated with non-FAR federal innovation. The study’s participants discussed the factors they

sought to identify and explore the factors that SBOs and FILs perceive as inhibiting or promoting

their engagement with non-FAR federal innovation pathways.

practice. To address these research questions, the researcher constructed a research strategy to

gather relevant data through confidential live qualitative semi-structured interviews conducted

populations (small business owners and federal innovation leaders) represented within the

exploratory case study group. Live interviews were conducted through the secure online Zoom

platform during a four-week period from May through early June 2024. A total of 34 live

interviews were conducted with qualified participants across the exploratory case study group,

resulting in rich narrative data representing perspectives from each of the two populations.

Concurrently with the conduct of the live semi-structured interviews around a standard

triangulation in data collection (Parcell & Rafferty, 2018). In qualitative research, artifacts

values and serve to triangulate qualitative data gathered through interview protocols (DeCarlo et

al., 2024). The researcher gathered artifacts from interview participants, including business and

government reports, innovation case studies, government guidance, professional development

interview transcripts using an interpretivist approach and conducted cross-analysis with the

artifact data, followed by thematic coding to identify and organize the qualitative data gathered

from SBOs, FILs, and both groups combined.

trustworthy. The qualitative case study enabled the researcher to explore and identify business

challenges experienced by SBOs and FILs and highlight successful working models of

the study illuminated recurring and consistent themes from the exploratory case study group that

may help SBOs and FILs engage more effectively with non-FAR federal innovation pathways

and inform policymakers and business leaders across the federal government in approaches to

increase successful SBO engagement with these pathways.

The study’s three research questions guided the researcher in the study and informed the

research:

RQ1: What factors did federal innovation leaders identify as influencing their motivation

to select non-Federal Acquisition Regulation (non-FAR) options for acquisition and

problemsolving to meet the needs of government operators and warfighters?

RQ2: What barriers did small business owners identify as inhibiting their interest in

participating in non-FAR pathways to government contracting opportunities?

RQ3: What steps did small business owners identify as those they believed would lead to

greater interest in participating in non-FAR pathways to government innovation funding

opportunities?

The subsequent sections of this chapter address data assurance, results, and evaluation of

Data Assurance

The use of a qualitative approach to gathering and analyzing data for this study has

enabled a rich and deep understanding of the factors perceived to influence behavior and

decision-making for small business owners and federal innovation leaders in non-FAR federal

innovation pathways. In this section, the researcher discusses the strategies used to ensure

validity and reliability (Bougie & Sekaran, 2020). Saturation is a concept used in qualitative

research to inform the suitability of sample size and instill confidence in the trustworthiness of

the findings (Guest et al., 2020; Vasileiou et al., 2018). Trustworthiness in qualitative data can be

(Nyirenda et al., 2020). The researcher followed the semi-structured interview protocols and

introduced prompts to ask participants to clarify narrative statements with examples of business

and operational contexts. Additionally, more data in the form of artifacts were gathered to

validate participant claims and address confirmability and transferability. The study’s interview

The interview data were triangulated through cross-reference with the collected artifacts

of Culture as presented by the study’s participants. Klingler (2020) found that systemic methods

to acquisition professionals to frame the needs of both efficiency and anti-corruption, resulting in

FILs working without the tools needed to both guide decisions and mitigate risks. Reba and

Gladstone (2020) found that a bureaucratic approach through FAR policy and practice sacrifices

agility and performance for the sake of risk aversion.

As study participants noted, the theme of Risk Management is often viewed as one of

threats of non-compliance, financial risk, and even jail time for acquisition professionals and

be considered in the context of potential opportunity cost, loss of agility, loss of mission focus,

contracts is unlikely to serve as a sound predictor of cost overrun avoidance or innovation

success. Meanwhile, Bruce et al. (2019) found that between grants and cooperative agreements,

the two major types of federal innovation funding mechanisms, the latter are most likely to yield

mechanisms and their performance. Weinig (2019) observed that federal acquisition

professionals frequently cited concerns of risk and the potential for fraud as a rationale for not

implementing non-FAR mechanisms despite the lack of tangible evidence.

The themes of Bureaucratic Hurdles and Financial/Resource Constraints were supported

breadth and depth of government contractor lobbying efforts have been correlated to government

awards for recipients in key battleground states and through politicized and executive

government agencies (Dahlstrom et al., 2021). Collaboration among government and industry

performers to clarify and set goals in contract design and execution can promote cost and

outcome success and performance (Brunjes, 2022; Lenderink et al., 2022). Perceptions of slow

disproportionate hurdles for small business owners can lead to avoidance by small businesses

2017).

indicated that less than half subsequently experienced meaningful value creation in

funding, business model growth, and awareness. This theme is supported by the literature.

Federal funding opportunity pursuit can enhance knowledge acquisition and

market entry barriers and, through this process, gain insights (Garcia et al., 2018; Storz et al.,

2022; Zhong et al., 2020). In short, small businesses seeking to do business with the government

can also learn by doing. SBO participants in the study noted a lack of awareness or knowledge

about federal innovation funding pathways. Leadership that champions a culture of innovation

can promote acquisition practices that encourage collaboration among stakeholders, including

among less likely performers such as startups and small businesses (Brunjes, 2022).

The theme of Leveraging Relationships and Expertise was supported by the literature.

Successful new entrants to federal award opportunities have been found to exhibit dynamic

learning, such as through receiving and incorporating guidance from relational best practices and

that non-FAR innovation pathways presented simpler means through which non-traditional

industry performers could participate in federal innovation. Weinig (2019) found that federal

acquisition professionals can lack awareness of contracting and procurement mechanisms outside

of the well-known and commonplace FAR government contracting options, typically used with

Federal innovation leaders and SBOs bear implications from the theme of Leveraging

organizational learning and knowledge sharing may be best positioned to promote new methods

to increase awareness of federal innovation needs with small businesses and non-traditional

performers throughout the innovation ecosystem (Adam, 2022; Euchner, 2017; Semenets-Orlova

et al., 2023). On the theme of Building Trust, novel approaches can present challenges for both

FILs and SBOs, as noted by study participants. Leaders who encourage a culture of innovation

and provide top cover to professionals working in their unit may be better positioned to improve

innovation outcomes, increase adoption of newer or less-known innovation contracting and

funding pathways such as CRADAs, PIAs, or OTAs, and increase the realm of potential

performers and technologies beyond the well-known prime contractors and those comfortable

with FAR mechanisms (Adam, 2022; Euchner, 2017; Miller et al., 2022).

Summary

sampling. The interview data were reviewed in audio and video format and compared against

interview transcript data for accuracy, then cross-referenced against the researcher’s live coding

notes prior to a full coding and thematic exercise. Thematic analysis of the data found a total of

10 themes across the three research questions, which were supported by the literature. In the

following chapter, the researcher discusses the implications of the findings, provides

defense industrial base and with defense contracting opportunities for potential funding or

award of a contract, especially at the early stages of prototyping and research and development.

Small business and startup owners encounter challenges in pursuit of federal innovation funding

opportunities and the award of federal contracts. HigherGov, a government contracting market

federal prime contractors, with less than half the volume of small business owner prime

explore the factors perceived by SBOs and federal innovation leaders (FILs) to promote or

inhibit engagement by small business owners with non-FAR government award opportunities.

research on large multinational companies and SBOs operating throughout the defense industrial

(Brunjes, 2022; Dutse et al., 2021; Hoppe & Schmitz, 2021). This exploratory qualitative case

study, founded on an interpretivist approach, examined the perceived factors identified by SBOs

The researcher used purposive and snowball sampling to identify and recruit SBOs and FILs

throughout the US. The experiences of 20 SBO and 12 FIL individuals were gathered through the

conduct of live semi-structured interviews and the collection of artifact data.

The researcher grounded the study in a theoretical framework incorporating motivation

concepts as introduced by Maslow (1943), organizational knowledge creation theory espoused

by Nonaka (1994), and motivation protection theory presented by Dongming (2020) and

engage with or avoid engaging with federal innovation funding mechanisms such as PIAs and

improvements to federal innovation systems that could increase engagement by SBOs and,

therefore, support goals to diversify the defense industrial base. Understanding the factors that

either motivate or demotivate SBOs and FILs to use incumbent mechanisms for federal

exploratory case study approach enabled the researcher to gather rich and descriptive data on

SBO and FIL experiences and perceptions relating to the phenomena and compare these

experiences and perceptions with real-world data from artifacts.

federal innovation and supporting government problem-solving needs or those considering

relevant to the topic of SBO engagement with federal innovation, those in positions to adjust

operational tactics or business strategies on the government side or to entirely redesign

operations and business strategy are at a disadvantage. The researcher used a semi-structured

inductive approach to each live interview built upon an interview guide that tailored the study’s

classification as SBO or FIL. The researcher contributed to the existing body of research by

federal innovation systems and processes and, ultimately, funding and award opportunities. In

this chapter, the researcher discusses the implications, recommendations, and conclusions for

current and future SBOs and FILs and presents specific recommendations for future research.

12 SBOs and 22 FILs. The researcher used an initial round of purposive sampling to identify an

initial set of interview recruits qualified based on their career experience in federal acquisition

and innovation or as a small business owner or leader, as well as their experience with non-FAR

federal innovation pathways. Following the initial purposive sampling, the researcher used

processes (Bresler, 2018; Weinig, 2019). Additionally, studies indicated that the efficiencies that

et al., 2022). Federal agencies should prioritize the streamlining of compliance and regulatory

requirements to make them more accessible to small businesses. Leaders and policymakers

should consider purposeful frameworks designed to balance risks with the need for efficacy and

deliver on program objectives.

Financial/Resource Constraints

The financial constraints faced by small businesses, including the high costs and financial

risks associated with federal contracts, were highlighted as major barriers. Although the

Development Agreements (CRADAs) having no associated funding whatsoever. The study’s

mechanisms, such as grants, connections with private funding groups, or low-interest loans,

could help mitigate these challenges (Schilling et al., 2017). Small business support

SBO engagement with federal innovation emerged in the experiences and perspectives of both

expanding financial assistance programs and networking of SBOs to funding resources

Awareness and Understanding

The lack of awareness and understanding of non-FAR pathways among small business

owners emerged as a common theme. The literature supporting the study’s findings,

underscoring the need for more effective communication and educational outreach from federal

agencies and small business support organizations (Storz et al., 2022; Zabala-Iturriagagoitia,

innovation opportunities. Hoekman and Tas (2022) found that transparent communication with

small businesses on contract and financial opportunities was an important factor in the success of

bolstering SBO engagement with federal acquisition. The current study’s findings suggest that

seeking to promote SBO engagement in innovation pathways and to reach SBOs and startups,

RQ3: Steps Needed to Increase SBO Engagement with Federal Innovation

and attractiveness of federal innovation opportunities. Next, the theme of Simplified Processes

overly complex. Finally, through the theme of Leveraging Relationships and Expertise, the

findings indicate that targeted and deliberate support and guidance can help increase SBO

motivation to engage with federal innovation.

Building Trust

increasing engagement. SBOs highlighted failures in trust when feedback on proposals or from

technical points of contact was not received. FILs highlighted that earning the trust of SBOs was

necessary, especially in innovation scenarios where funding may be slow or delayed. The

literature supports the study’s findings on the importance of trust, indicating that strong,

trustbased relationships are essential for successful collaboration (Pukhova et al., 2021).

leaders may have allies in supporting the cultivation of trust amongst SBOs.

Universities can play a key role in supporting startups and SBOs seeking to develop

firmlevel innovations or capabilities and navigating critical steps related to technology transfer,

technology transition, and commercialization (Storz et al., 2021). Findings suggested that SBO

mistrust can emerge in discussions related to business matters such as intellectual property (IP)

cooperation and slow free knowledge exchange (Gusberti et al., 2018). Federal agencies should

mechanisms, to foster trust with SBOs and activate small business support organizations and

partners throughout the federal and entrepreneurial ecosystem.

Simplified Processes

Simplifying procurement processes was frequently mentioned as a necessary step to

administrative barriers and procedural hurdles that span all points of experience, ranging from

the identification of opportunities to seeking feedback and understanding complex procedural

steps and regulations. FILs indicated that the steps to explore and initiate certain non-FAR

federal acquisition mechanisms could be unclear on the government side. These findings suggest

that federal agencies should focus on reducing bureaucratic complexity and creating more

simple acquisition questions can be used to guide frameworks for decision-making with

improved outcomes (Rosen et al., 2019). Implementing streamlined, clear, and functional

processes and ensuring sound communication to stakeholders can improve the accessibility and

attractiveness of federal innovation opportunities for SBOs and the motivation of FILs to utilize

Leveraging Relationships and Expertise

Participants highlighted the value of leveraging external expertise and forming strategic

partnerships. When confronting complex and confusing systems and processes across federal

procurement and acquisition, SBOs indicated that expertise and purposeful relationships helped

alleviate confusion and reduce wasted time. FILs likewise indicated that government expertise

could be viable pathways for innovation and meeting project or mission needs. This study’s

findings align with the literature, which indicates that collaborations with consultants, trusted

experts, or experienced and successful private sector firms can provide SBOs with the necessary

cooperation and experimentation while leading to organizational learning within and across

agencies and branches. For startup and SBO stakeholders, FILs and government acquisition and

procurement professionals can serve as support mechanisms that provide guidance and expertise

by leveraging and sharing their experience and professionalism, staying involved in the SBO’s

mentorship programs, with a focus on SBOs as well as on internal human capital and knowledge

The study’s findings illuminated several areas of recommendation for future research.

questions.

RQ1: Factors Influencing FILs’ Motivation to Select non-FAR Pathways

Future research should explore the impact of specific leadership development programs

organizational culture influence the use of innovative acquisition methods over time.

offices could identify best practices for fostering a supportive culture for innovation.

RQ2: Barriers Inhibiting SBO Engagement with Federal Innovation

federal procurement and understand the impact of existing federal innovation funding pathways,

and identify additional mechanisms that could mitigate these challenges. Research should also

focus on developing and testing educational interventions to improve small business awareness

and understanding of non-FAR pathways among industry audiences and within government and

government-adjacent professionals, leaders, and practitioners.

RQ3: Steps Needed to Increase SBO Engagement with Federal Innovation

Future studies should investigate the long-term effects of trust-building initiatives

between federal agencies and small businesses. Experimental research could test the impact of

specific process simplifications on SBO engagement and FIL utilization of non-FAR federal

innovation pathways. Additionally, research should explore the role of strategic partnerships and

Conclusions

needed to increase small business owner participation in non-FAR federal innovation pathways.

unearthed nine key themes, including the importance of efficiency, culture, and trust. These

and practice. Future research should build on these findings to further enhance our understanding

of federal innovation and identify effective strategies for increasing SBO engagement.