INNOVATIVE BEHAVIOUR OF INDIAN MICRO SMALL AND MEDIUM ENTERPRISES: AN EMPIRICAL STUDY

Abstract

The aim of this paper is to explore innovative behaviour of Indian Micro Small and Medium Enterprises. It is interesting to study innovative behaviour of microsmau and medium enterprises (MSMEs) since they try to innovate while surrounded by many barriers. They also face high failure rate in doing so. This failure is due to presence of barriers that MSMEs fail to manage. But it has been observed that many MSMEs are now awakening to their potential and becoming innovative. They tend to respond to environmental factors in an innovative way, either by cutting cost or changing ways of management. This innovative way defines their innovative behaviour. The innovative behaviour of MSMEs is studied through three variables, i.e., size, age and barriers faced by them. The result shows that size does influence innovation activities undertaken by MSMEs and statistically, there is no correlation between age and innovative behaviour. Their innovative behaviour is affected by barriers like shortage of technical skilled manpower, technology and shortage of funds or complex funding procedure. The paper is concluded by summarising the key findings, discussing implications, limitations and further scope of study.