Drivers for Innovation in Small and Medium-Sized Enterprises
Hesham Mugharbil* and Gamal Weheba**
Effat University, Jeddah, Saudi Arabia*
Wichita State University, Wichita, Kansas, Untied States **

Abstract: Innovation is the foundation for sustaining competitive advantage and growth. Innovation management is vital to small businesses, and requires clear plans, processes, and measures. This study examines key drives of innovation in small- and medium-sized enterprises (SMEs). Based on an extensive literature review, a set of eight constructs pertaining to innovation practices were identified. Each construct was assigned six codes, which were validated by analysing application summaries of the Baldrige Award recipients. Content analysis of 880 publications revealed their relevance and relative importance. Principal components analysis (PCA) suggested that “idea generation” and “marketing capabilities” are two key drivers for innovation. This paper represents a detailed description of the steps followed and the results obtained. The paper concludes with practical implications and proposes directions for future research.

Keywords: drivers for innovation, innovation models, small and medium sized enterprises, qualitative analysis, principal components analysis, content validity ratio.