Title: Determinants of sustainable financial and innovation performance: a panel data analysis of Indian manufacturing SMEs

Authors: Abhishek Kumar Sinha; Aswini Kumar Mishra; R.L. Manogna; Rohit Prabhudesai

Addresses: Department of Economics, BITS Pilani, K K Birla Goa Campus, Zuarinagar 403726, Goa, India ' Department of Economics, BITS Pilani, K K Birla Goa Campus, Zuarinagar 403726, Goa, India ' Department of Economics, BITS Pilani, K K Birla Goa Campus, Zuarinagar 403726, Goa, India ' SIBM, Pune, 412115, Maharashtra, India

Abstract: The contribution of Indian manufacturing small and medium enterprises to the gross domestic product has been consistently falling across the last few years as they have been struggling to survive and scale up due to a host of factors. This study aims to provide important implications to improve their competitive position by trying to identify the determinants which influence the two critical indicators of sustainable firm performance-sustainable financial performance and sustainable innovation performance. To do so, we empirically analyse 486 R&D conducting SME manufacturing firms from the firm-level data for the period of 2006-2017. Our results indicate that the determinants have a disparate impact on both types of sustainable firm performance. The study reveals important theoretical as well as practical insights for the long-term sustainability and competitiveness of manufacturing SMEs.

Keywords: SMEs; manufacturing firms; manufacturing SMEs; sustainable firm performance; sustainable financial performance; sustainable innovation performance; R&D; export intensity; fixed and random effects; India.

DOI: 10.1504/IJBG.2023.128325

International Journal of Business and Globalisation, 2023 Vol.33 No.1/2, pp.113 - 129

Received: 31 Oct 2019
Accepted: 15 Jan 2020
Published online: 18 Jan 2023 *

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