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Purpose – The purpose of this paper is to examine the determinants of innovation in handicraft industry of Fiji and Tonga. Design/methodology/approach – Data for this study was collected via face-to-face interviews with handicraft sellers in Fiji and Tonga. In total, 368 interviews were conducted in Fiji and Tonga out of which, 48 was from Tonga and 320 was from Fiji. Findings – The results of this study show that eight factors; namely, value adding, design uniqueness, new product development, cultural uniqueness, advanced technology, experience of owner, ability of owner to adapt to trends in market and quality of raw materials have significant impact on level of innovation in handicraft industry of Fiji and Tonga. Originality/value – To date, none of the existing studies have examined determinants of innovation in handicraft industry of the Pacific Island countries. This is a pioneering study that examines determinants of innovation in handicraft industry of Fiji and Tonga.
Naidu et al. (Tue,) studied this question.