Chapter 13: An Empirical Examination of Factors Influencing Adoption of Innovation for Sustainable Economy: Evidence From MSMEs’ Perspective

This chapter aims to identify the various factors that determine the adoption of innovation, incorporating sustainability management among micro, small and medium enterprises (MSMEs) in the context of developing economies.

A final sample of 502 respondents was used in this study. It employed the factor analysis technique to assess the various factors that influence sustainability-oriented innovation in MSMEs.

This chapter identifies six factors, namely government support, financial resource and capabilities, technological capabilities, management support, capacity building, collaborations and sustainable open innovation practices (SOIP) that determine the adoption of sustainability-oriented innovation among MSME in developing economies like India.

The findings of this chapters will be helpful for MSME practitioners to focus on the factors to drive sustainability-oriented innovation in the business organization. It will also help the other stakeholders to improve the understanding of development and implementation of innovation incorporating sustainability in the MSMEs. The limitation of the study is that the findings are only in the context of textile industry and the determinants may vary across different industries.

This chapter significantly expands the extant body of knowledge in sustainability-oriented innovation in the context of MSME in the textile industry in developing economies.