Modelling the Interface among the Critical Barriers to Innovation Capability in Micro Enterprises

Abstract

The marketplace is predominantly a microbusiness-dominated phenomenon. Across the globe, the status of the tiniest form of business is different and dynamic. It has been widely argued that the tiniest forms of business do not get equal opportunities and the resources to come up with something new for the world. There are several barriers to the innovation capability of existing research, and they are all treated with equal importance. Authors opine that prioritization will advance our knowledge further. This article, based on primary data collected using focus group discussions, identifies 14 barriers to innovation capability and seeks to establish a causal (utilizing Decision-Making Trial and Evaluation Laboratory method) relationship among them in the context of microenterprises. Low involvement of Generation Z emerged as the most important barrier to innovation capability in Indian microenterprises, resulting in limited availability of resources, an orthodox approach, shallow lateral creativity, isolation from the mainstream, lack of market sense and foresight, one person shouldering all responsibility, and a highly unorganized sector. To the best of the researcher’s knowledge, no study in the literature has attempted to identify barriers to innovation capability and establish causal relationships among them in the context of microenterprises in India.