Breaking Through Barriers: Unveiling Innovation Challenges of SMEs in Bosnia and Herzegovina?

Nejra Hadžiahmetović-Milišić (), Lamija Krndžija, Djerdj Horvat () and Amila Pilav-Velić ()
Additional contact information
Nejra Hadžiahmetović-Milišić: University of Sarajevo
Lamija Krndžija: University of Sarajevo
Djerdj Horvat: Fraunhofer Institute for Systems and Innovation Research ISI
Amila Pilav-Velić: University of Sarajevo

A chapter in Eurasian Business and Economics Perspectives, 2025, pp 251-271 from Springer

Abstract: Abstract Small and medium-sized enterprises are essential for economic growth, especially in emerging economies. However, innovation—a key driver of competitiveness—poses a significant challenge for these businesses. This study concentrates on identifying specific barriers SMEs in Bosnia and Herzegovina face in their innovation efforts. Using an input-throughput-output framework, we couple a review of existing literature with interviews to investigate these challenges. Our findings reveal a disconnect between the educational system and the labor market demands, resulting in difficulty attracting and retaining qualified personnel, which is compounded by the issue of brain drain. Furthermore, bureaucratic complexities and a lack of financial support stifle the innovation process. We also identify internal obstacles, such as insufficient employee engagement and motivation, which affect the throughput phase of innovation. Finally, SMEs often prioritize client relations over pursuing innovative strategies, influencing their output and market stance. This study provides new insights into the systematic impediments to innovation in SMEs within an emerging economy context and suggests areas for policy and practice improvement.

Keywords: SMEs; Innovation; Barriers; Emerging economies; Bosnia and Herzegovina (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:eurchp:978-3-031-80256-0_16

Ordering information: This item can be ordered from
http://www.springer.com/9783031802560

DOI: 10.1007/978-3-031-80256-0_16

Access Statistics for this chapter

More chapters in Eurasian Studies in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().