Revitalization of Indian SMEs for sustainable development through innovation

Globalization has led to the metamorphosis of SMEs for over a decade and half with the onset of innovation process. Despite this, several barriers prevent the SMEs owners from acting as intelligent and proactive firms. This paper seeks to understand what and how barriers related to innovation processes and relationships among them in SMEs influence entrepreneurs to innovate and to reap the benefits of innovation. We address this by identifying factors and determining the causal relationship among the barriers using Decision Making Trial and Evaluation Laboratory technique (DEMATEL) approach. The original contribution of the study lies in the fact that no study so far determines the causal relationship among the barriers to innovation in SMEs. Entrepreneurs and academicians would stand to gain by knowing which barrier leads to which specific outcome barrier. Knowledge and elimination of these barriers may help in fostering the process of innovation in SMEs.