Measuring the innovation capability of micro enterprises in India

Abstract

Purpose The development of innovation capability (IC) is a central issue for both practitioners and academicians. However, studies that investigate the dimension of IC in the context of micro-enterprises are absent. Based on capability-based view, the purpose of this paper is to identify important dimensions to build a scale to measure IC in micro-enterprises. Design/methodology/approach The study is based on focus group discussions for item generation and questionnaire survey on a sample of 379 micro-enterprises in India. The scale is developed with the help of exploratory factor analysis and confirmatory factor analysis. Statistical tests demonstrate that the scale presents composite reliability as well as discriminant and convergent validity. Findings The findings show that four dimensions form IC in micro-enterprises: resources, networking, risk taking and involvement. Originality/value This study develops a new scale, which is a measure of IC of micro-enterprises. The implications have been recommended, which focus upon entrepreneurs, academicians and policymakers interested in developing the IC of micro-enterprises in India.

Study on Evaluating Innovation Ability of High-tech Industry Based on Particle Swarm Synthesis Optimization

“…The evaluation of innovation capability has become a popular topic of research. In [1] Raghuvanshi et al found that the innovation capability in micro-enterprises were formed by the resources, networking, risk taking and involvement. In order to enhance the understanding of the essence of product innovation capability, in [2] Sharma et al assessed the conceptualization and construct validity of product innovation capability systematically.…”

Innovative capacity in Micro, Small and Medium Enterprises: Review of international articles on empirical research

“…The innovation capacity recognized by these authors is the contribution of many different elements including leadership, organizational culture, knowledge management, skills, management, optimization of external knowledge, and creativity of employees. Some other studies defined innovation capacity as a combination of competencies including academic competency, entrepreneurship, marketing, networking, knowledge-building competencies, change management capacity, development capacity (Forsman, 2011); service innovation, technological process innovation, management process innovation (Baba, 2012); Innovativeness and capacity to innovate (Tamayo-Torres, Gutiérrez-Gutiérrez, Llorens-Montes, & Martínez-López, 2016); internal innovation capacity and open innovation (Agostini, Nosella, & Soranzo, 2017); Resource exploitation capacities, resources, networking capacities, risk-taking and involvement (Raghuvanshi et al, 2019;Raghuvanshi & Garg, 2018). Specially, the research and development index of small businesses is considered as a small part of the above dimensions to create innovation capacity.…”

“…The first research perspective shows that innovation capability in small businesses is determined by various dimensions. These key determinants include the ongoing learning of the organization, including managers and employees (Song, 2015); elements of knowledge, people and organizations (Martínez-Román et al, 2011); knowledge management (Raghuvanshi & Garg, 2018); resources include knowledge and skills, involvement, networking (Raghuvanshi et al, 2019). Other considerable factors that create innovation capacity are considered strategic innovation including internal resources (humans, skills, cultural organizational structure, and technology) and external resources (suppliers, distributors, customers) and the collaborative factors of stakeholders such as employees, distributors, customers (Taneja et al, 2016).…”

“…Researchers think that innovation helps to reach customers' needs more because innovation manifests itself in many forms such as ideas, methods, techniques, or tools that are applied more effectively and efficiently than before (Raghuvanshi, Agrawal, & Ghosh, 2019). In business administration, innovation is essential to the survival of the business, by developing innovation capacity.…”

Measurement of Innovation Capability of Small Enterprises in the Wholesale Fabric Sector

“…As for this category of Manufacturing Industry (manufacturing), Innovation can be understood as an idea, method, technique or instrument that is more effective or efficient than the previous one. It can also be seen as the implementation of better and improved solutions that fulfill new needs or meet existing needs better [14]. Innovation capability is one of the most important dynamics that enables SMEs to achieve a high level of competitiveness both in the national and international market.…”