Improvement of innovation capacity of SMEs in Republic of Serbia by connecting with key stakeholders

Abstract

The purpose of this paper is to examine the influence of connecting with key stakeholders in order to improve innovative capacity of SMEs. This is essential for SMEs in Serbia where these enterprises are facing numerous problems in operation and performance of innovative activities. Starting from the existing theoretical views about the importance of creating innovative SMEs business network which results in the creation and delivery of unique value to the market, the authors tend to explore the innovative capacity of SMEs in Serbia and identify opportunities for cooperation with key stakeholders. Wider interest in empirical research coincides with the need for more intensive involvement of Serbian SMEs in foreign markets. The survey was conducted on a sample of 304 SMEs in Serbia. In the survey, data were collected using personal interview and in-depth interview. The questionnaire is structured in such a way that allows to identify the importance which managers attribute to cooperation with key stakeholders, in order to increase their innovative capacity. The findings indicate that the SMEs managers in Serbia still do not perceive the importance of connecting with stakeholders to perform the innovative activities. Based on these findings, SMEs managers would do well if they pay attention to open innovation as new innovative practices which can contribute to create valuable knowledge necessary to perform innovative activities. For academics, this paper indicates the need for a further research in order to identify the obstacles SMEs in Serbia are facing within the process of networking with both domestic and foreign stakeholders, which is the reason they are underused in increasing innovative capacity.