A configurational approach to innovation focused on Small and Medium-sized manufacturing Enterprises in India

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This article raises the question which configurations of regional institutional voids and firm resources lead to the presence or absence of innovation performance of Small and Medium-sized manufacturing Enterprises in India? For firm resources the following conditions were taken into account: 1) managerial experience; 2) workforce educational level; and 3) knowledge sources. By using fuzzy set Qualitative Comparative Analysis as research technique we found that the presence of a well-educated workforce in combination with the presence of regional institutional voids and the absence of an experienced manager leads to innovativeness. On the other hand, we found that the absence of knowledge sources in combination with the absence of the other conditions (institutional voids, educated workforce and experienced managers) leads to non-innovativeness. The findings especially revealed the importance of well-educated workers in order to become innovative. The results indicated that these conditions, at the same time, do influence the innovativeness of SMEs. Something that is often not appointed in existing literature, but in the meantime something that has a lot of impact on the innovation performance of enterprises in India. Keywords: India, innovation, regional institutional voids, resource-based view, fs/QCA, SMEs
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