Management of Innovation in Micro, Small and Medium Enterprises in the Middle East and North Africa (MENA)
Springer book Entrepreneurship in the Middle East and North Africa - Dynamics in Trends, Policy and Business Environment, edited by Dr. Nezameddin Faghih, Forthcoming
26 Pages Posted: 8 Mar 2017 Last revised: 25 Sep 2017
Date Written: April 24, 2017
The objective of chapter is to understand management of innovation in micro, small and medium enterprises in MENA region. Traditionally, MENA region includes following countries: Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, and United Arab Emirates. The aim of the countries of the MENA region has been to achieve better economic growth and development. And for this, they understand that they have to get rid of tag of ‘Rentier State’. This is only possible through focusing on innovative practices. One study reveals that innovation culture is active and organizations have made innovation strategies for long-term period in MENA region.
Through active innovation culture, organizations adopt best practices. Micro, Small and Medium Enterprises have a very high share of private sector employment in the Middle East and North Africa (MENA), particularly in countries with large informal sectors. According to official statistics, they account for 10 to 40 percent of all employment. Number of start-ups has also increased around eight times in 2011 as compared to 2005 in MENA region. There is potential in a small proportion of high performing MSMEs to catapult into internationally competitive companies. This can generate employment, and economic stability (Nasr and Pearce, 2012). But MSMEs, however, face many barriers in this transition. They suffer from operational, financial problems in competing with large enterprises. Addressing these challenges to MSME growth and competitiveness is central to overcoming employment and economic development challenges in the region. Given all the barriers, MSMEs must be able to manage their innovation practices in order to stay competitive. They should take advantage of growing innovation culture in MENA. The chapter highlights some of the innovation management techniques to be adopted by these MSMEs in MENA region.
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