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Abstract

Purpose The aim of this study is to identify and rank the factors of innovation capability (IC) in Indian micro, small and medium enterprises (MSMEs). This study focuses on ascertaining the important factors that help in enhancing the IC with an emblematic focus on the MSME sector of India. Design/methodology/approach This paper proposes a multicriteria decision-making methodology, which is based on fuzzy analytic hierarchical process to prioritize the factors that enhance the IC of MSMEs. Finally, sensitivity analysis is conducted to examine the ranking stability. Findings Knowledge management is the most important enabler, followed by creativity and idea management and organizational culture. Practical implications Several organizations promote the strategic measures for enhancing the IC. To increase their capability to innovate, there is a need to identify, acknowledge and implement the drivers of IC into practice. Originality/value Prioritization done in the study facilitates the entrepreneurs to determine the most important factors that need crucial attention in dealing with sensitive issues of IC. Entrepreneurs can take several steps to implement the most important factors for enhancing the IC into practices for meeting the needs of the consumers, generating profits and enhancing the competitiveness.

The effects of internal and external innovation strategies on process innovation in Vietnamese firms

“…A growing body of literature recognizes the pivotal role of innovation (Kim et al, 2018;Raghuvanshi and Garg, 2018). Innovation is a fundamental requirement for developing countries to flourish their economy, alleviate poverty and catch up with middle and higher-income economies (OECD, 2012).…”

Entrepreneurial knowledge, skills, competencies and performance

“…Specifically, micro and small enterprises, as the drivers of indigenous entrepreneurship, play a key role in developing the global economy by improving technological capability building, diffusion of innovations and capital mobilization (Nabiswa and Mukwa, 2017). At the same time, firms at the global level are facing many challenges in the forms of market uncertainty, human and financial capital and increase in both local and international competitors (Raghuvanshi and Garg, 2018). This is why OECD and its participating countries emphasize on entrepreneurship, not only by increasing the number of entrepreneurs but also by creating more enterprises and employment growth for a social safety net.…”

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).…”