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A model for measuring innovation capacity in small and medium sized enterprises: empirical evidence from the United Arab Emirates

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  • Eseroghene Udjo
  • Shahira Osama Abdalla
  • Giovanna Bejjani

Abstract

The literature on innovation capacity is fraught with ambiguities. The innovation capacity of small and medium sized enterprises (SMEs) has a wide range of interpretations, making it a difficult construct to examine. The ambiguity is a challenge, and it shows that our current understanding of the topic is inadequate. Therefore, the study examines the dimensions of innovation capacity of SMEs in the United Arab Emirates (UAE). The objective is to explore what drives innovation and how it may support SMEs in the UAE to remain competitive. Drawing on insights from theoretical studies of innovation capacity, the research identifies seven innovation capacity dimensions and uses factor analytic technique to evaluate these dimensions for consistency with those presented in the literature. The analysis extends to the use of structural equation modelling (SEM) to assess how well the hypothesised model fits the data. The results demonstrate that our research model fits the data well.

Suggested Citation

  • Eseroghene Udjo & Shahira Osama Abdalla & Giovanna Bejjani, 2026. "A model for measuring innovation capacity in small and medium sized enterprises: empirical evidence from the United Arab Emirates," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 39(4), pages 499-510.
    • Handle: RePEc:ids:ijbexc:v:39:y:2026:i:4:p:499-510
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