Factors Determining Innovation in Micro Enterprise Clusters

Tamal Sarkar (), Nonita Yap, Geeta Vaidyanathan () and Sangeeta Agasty ()
Additional contact information
Tamal Sarkar: Foundation for MSME Clusters
Nonita Yap: University of Guelph
Geeta Vaidyanathan: University of Guelph
Sangeeta Agasty: Foundation for MSME Clusters

Chapter Chapter 3 in Inclusive Innovation, 2020, pp 51-73 from Springer

Abstract: Abstract This paper argues that the primary drivers of innovation for micro enterprises in clusters are human factors sharpened through business processes (including learning by seeing and learning by doing), market sources (backward, forward and horizontal linkages) and market sophistication (size of the firm and nature of the buyer), in that order. Any change in or introduction of new processes, products or organizational arrangements has been considered as an innovation at the cluster level. It presents findings based on statistical analysis of primary data collected from 50 “innovators” in four clusters. Interestingly, factors related to the influence of institutional source and role of associations were found to be negatively correlated and insignificant in explaining the phenomenon, as these were mostly underdeveloped or absent in these clusters. Traditional horizontal active cooperation, the principal clustering process per se, was not a significant explanatory variable to promote innovation in underperforming underachiever clusters. Also, while market was a major mover of economic innovations, social and environmental innovations are found as a kind of push factors coming from backward linkages.

Date: 2020
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:isbchp:978-81-322-3929-1_3

Ordering information: This item can be ordered from
http://www.springer.com/9788132239291

DOI: 10.1007/978-81-322-3929-1_3

Access Statistics for this chapter

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