EuroEconomica, Vol 36, No 1 (2017)

The Potential Role of Innovative Indian SMEs in Sustainable Growth

Oncioiu Ionica, Florentina Raluca Bîlcan, Anca Gabriela Petrescu


India has experienced a robust economic growth in the recent years, but with a trajectory which offers both positive and negative lessons on the business innovation faced by many countries in Asia and elsewhere in the developing world. This study sought to test the relationship between innovation, financial performance and economic growth. Data were analyzed using descriptive and inferential statistics on the factors that contribute to assuring the innovation of the processes involved in the financial performance and economic development in the rubber and plastic product sector in India. The results revealed that there is a positive relationship between innovation and economic growth, as well as between innovation and the financial performance of the company. Finally, the conclusion presents implications, limitations and directions for future research regarding the importance of innovation to the firm’s performance. A clear lesson from this study is that the future must include promoting Innovative Indian SMEs; in other words, business competitiveness depends on the creativity and innovativeness of its entrepreneurship.


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