Modelling cause and effect relationship among enablers of innovation in SMEs

Purpose: Innovation is a prerequisite for economic and technological growth of any organization. Identifying enablers of innovation can help managers accelerate the process of economic growth. The purpose of this paper is to identify the prominent enablers of innovation in small and medium enterprises (SMEs) that can help overhauling organizations and benefit them economically. Design/methodology/approach: A comprehensive literature review and expert’s opinions have been applied to identify enablers of innovation. A case of automotive component supplier is considered for conducting the research. A coalescence of Grey and DEMATEL methodologies has been incorporated to first rank the enablers of innovation based on their importance and then identify the causal relationship among these enablers by characterizing enablers into causal and effect groups. Findings: A few important enablers, namely, entrepreneur traits, knowledge management, resources for innovation, and linkage capabilities, have been identified as prominent enablers for successful innovation in SMEs. Practical implications: This paper identifies enablers of innovation in SMEs and the causal relationship between these enablers. The identified enablers and the causal relationship between these enablers will help managers of small organizations in selecting the enablers that need to be focused on, which, in turn, can drive other enablers of innovation, thus saving time and resources of the organizations. Originality/value: This paper uses a novel Grey–DEMATEL methodology to identify the causal relationship among enablers and also contributes to the literature on innovation by identifying enablers of innovation in SMEs.