Perception of Demand, Markets and Innovation: A Case Study on Indian Msmes

Abstract

The Micro, Small and Medium enterprises today constitute a very important segment of the Indian economy. The development of this sector came about primarily due to the vision of Government policies framed right after independence which stressed to develop small enterprises. MSMEs sector has emerged as a dynamic and vibrant sector of the economy. As per the fourth census of MSMEs report published in 2012, the total numbers of MSMEs in India are 36 million employing over 80 million people. It is the second largest employer after agriculture accounting for 72% services and 28% manufacturing jobs. It also accounts for 45 % of total industrial production, 40% of total exports and contributes very significantly to the GDP. Manufacturing segment within the MSME contributes to 7.09% of GDP. The benefits of the MSMEs have created a special status and importance in the Five-Year Plans right from its inception. In recent years, the MSME sector has consistent higher growth rate compared to the overall industrial sector. Despite its commendable contribution to the country’s economy, MSME Sector is not getting the required support and faces numerous problems. This research aims at developing a framework taking into account efficient demand marketing and innovation strategy performances by addressing three fundamental objectives of the study which is to develop models to study relationship between demand marketing and innovation performance and generate pivotal findings that validates the model and will offer robustness to the policymaking with respect to the MSME sector going forward. The research showcases specific methodologies to effectively measure the reliability and the validity of the questionnaire. The research also presents the result of the study undertaken by showcasing the factors such as technology management and brand equity that play key roles in driving contribution towards innovation performance of an organization.