MSMEs' innovation: a barrier approach
Journal of Small Business and Enterprise Development
ISSN: 1462-6004
Article publication date: 15 March 2024
Issue publication date: 5 June 2024
Abstract
Purpose
This article presents a comprehensive analysis of innovation in micro, small and medium enterprises (MSMEs) in India, focusing on the barriers and facilitators within their internal and external ecosystems.
Design/methodology/approach
A self-administered questionnaire was used to collect data from 1430 MSMEs across India, employing Structural Equation Modeling (SEM) to analyze the relationships between internal and external factors and innovation adaptation.
Findings
The findings indicate that factors such as top management and organization structure, communication, technological capability and adaptation and organizational culture have a positive impact on innovation adaptation within the internal environment. Conversely, employee and market orientation, as well as financial factors, have a negative influence. Regarding the external environment, industry and competitive analysis, internationalization and partner alliances were found to positively affect innovation adaptation, whereas the country's infrastructure and policies had a negative impact.
Originality/value
The study emphasizes that MSMEs have the potential to leverage their internal and external environments to foster innovation within their organizations.
Keywords
Citation
Aggarwal, A. and Joshi, N. (2024), "MSMEs' innovation: a barrier approach", Journal of Small Business and Enterprise Development, Vol. 31 No. 3, pp. 552-573. https://doi.org/10.1108/JSBED-07-2023-0304
Publisher
:Emerald Publishing Limited
Copyright © 2024, Emerald Publishing Limited