A MULTI-PERSPECTIVE VIEW OF THE CRUCIAL FACTORS CONTRIBUTING TO INNOVATION: A CASE OF PAKISTANI SMALL AND MEDIUM ENTERPRISES

Abstract

In today’s world globally social scientists, states, and entrepreneurs have
shown great interest in SME development and recommended that innovation
is one of the best sources to achieve a potential contribution of SMEs. A
qualitative case study research is conducted to understand the distinct
determinants leading SMEs towards innovation. Thirteen cases have been
selected for an in-depth interview through convenient sampling. Data has
been analyzed through Miles and Huberman techniques with the support of
NVIVO-10. The findings highlight certain determinants that lead SMEs
towards innovation like dominantly educated and experienced owners/
managers, financial resources availability, technology acquisition, R&D
activities, and skilled employees. Surprisingly, the findings suggest that a
close relationship with technology and material suppliers strongly impacts a
firm’s innovative performance. Overall, the findings suggest that innovation
is possible in an unsupportive institutional environment if a firm can
properly utilize its available resources and abilities.