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Innovation In Pakistan's SMES: Making The Case For Coupling Model And Looking Beyond

Author

Listed:
  • Saleem Gul

    (Institute of Management Sciences, Peshawar)

  • Muhammad Nouman

    (Institute of Management Sciences, Peshawar)

Abstract

Innovation as a phenomenon has been viewed in many different ways. Starting with Joseph Schumpeter in the 1930s, we have come a long way. Despite loads of literature and research work, our understanding of what innovation is and how to study it especially in the context of SMEs remains inconclusive. Advocating a systems/process approach, the paper opines that studying innovation in the case of Pakistani SMEs will involve taking into account the local perspective. The nature of products/ processes, type of SME sector, role of government and support institutions, as well as technology and market sophistication will greatly influence our interpretation and application of innovation models presented by Roy Rothwell. Owing to weak technology regimes and lack of well-placed market structures for many SME sectors in Pakistan, it is argued that we need to look beyond the first and second generation innovation models to find out why innovation has traditionally been reticent. For Coupling Model (third generation), amendments are proposed. It is argued that the role of entrepreneur, government, other institutions and suppliers needs to be given considerable weight rather than assuming a simple technology-push/market-pull paradigm. The fourth generation models cannot be ratified at this stage since most SME sectors in Pakistan tend to have simpler organizational structures and manufacturing processes weakening the case for parallel development. Additionally, most SME sectors do not operate in technology intensive markets suggesting that the fifth generation models may not be applicable either.

Suggested Citation

  • Saleem Gul & Muhammad Nouman, 2009. "Innovation In Pakistan's SMES: Making The Case For Coupling Model And Looking Beyond," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 1(1), pages 20-25, April.
    • Handle: RePEc:bec:imsber:v:1:y:2009:i:1:p:20-25
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    References listed on IDEAS

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    1. Alexander Coad & Jagannadha Pawan Tamvada, 2008. "The Growth and Decline of Small firms In Developing Countries," Papers on Economics and Evolution 2008-08, Philipps University Marburg, Department of Geography.
    2. Tether, B. S., 1998. "Small and large firms: sources of unequal innovations?," Research Policy, Elsevier, vol. 27(7), pages 725-745, November.
    3. Vangelis Souitaris, 1999. "Research On The Determinants Of Technological Innovation: A Contingency Approach," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 287-305.
    4. Richard A. Wolfe, 1994. "Organizational Innovation: Review, Critique And Suggested Research Directions," Journal of Management Studies, Wiley Blackwell, vol. 31(3), pages 405-431, May.
    5. Souitaris, Vangelis, 2002. "Technological trajectories as moderators of firm-level determinants of innovation," Research Policy, Elsevier, vol. 31(6), pages 877-898, August.
    6. Albert Berry, 1998. "The Potential Role of the SME Sector in Pakistan in a World of Increasing International Trade," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 25-49.
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    Cited by:

    1. Muhammad Anwar & Sher Zaman Khan & Najib Ullah Khan, 2018. "Intellectual Capital, Entrepreneurial Strategy and New Ventures Performance: Mediating Role of Competitive Advantage," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 10(1), pages 63-94, March.
    2. Rizwan Ullah Khan & Yashar Salamzadeh & Hiroko Kawamorita & Gabor Rethi, 2021. "Entrepreneurial Orientation and Small and Medium-sized Enterprises’ Performance; Does ‘Access to Finance’ Moderate the Relation in Emerging Economies?," Vision, , vol. 25(1), pages 88-102, March.

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