Role of innovation persistence on product innovation in SMEs

Assaf, Wael and Fayoumi, Amjad and Baptista, Joao (2024) Role of innovation persistence on product innovation in SMEs. In: The 2nd International Conference on Advancing Sustainable Futures, 2024-12-11 - 2024-12-12, UAE.

Abstract

Despite numerous studies on innovation persistence over the past 20 years, defining its source in the firm remains challenging. There is still no common approach to achieving innovation persistence which leads to ambiguity in handling turbulent innovation environment. This paper examines the importance of innovation persistence in an IT firm in Jordan. It explores the role of path dependence in slowing or restricting the process of continuous innovation in firms. Over 40 interviews were conducted with senior-level employees at the firm. The study captures and conceptualizes the processes that create path dependency and lock-ins, while also identifying pressures and internal mechanisms that enable these organizations to continuously innovate and maintain their competitive edge in the highly dynamic tech sector. The findings suggest that in emerging countries, tech firms often develop products in response to local and regional customer requirements. Factors contributing to path dependencies include resistance to changes in leadership styles, shifts in technology paradigms, and the departure of internal team members. While these factors hinder progress, they also present opportunities for innovation. For instance, new technology paradigms can enhance agility in product development, allowing firms to break free from initially established paths.