Designing and Validating a Model for Measuring Sustainability of Overall Innovation Capability of Small and Medium-Sized Enterprises

The business environment is currently characterized by intensified competition at both the national and firm levels. Many studies have shown that innovation positively affect firms in enhancing their competitiveness. Innovation is a dynamic process that requires a continuous, evolving, and mastered management. Evaluating the sustainability of overall innovation capability of a business is a major means of determining how well this firm effectively and efficiently manages its innovation process. A psychometrically valid scale of evaluating the sustainability of overall innovation capability of a firm is still insufficient in the current innovation literature. Thus, this study developed a reliable and valid scale of measuring the sustainability of overall innovation capability construct. The unidimensionality, reliability, and several validity components of the developed scale were tested using the data collected from 175 small and medium-sized enterprises in Iran. A series of systematic statistical analyses were performed. Results of the reliability measures, exploratory and confirmatory factor analyses, and several components of validity tests strongly supported an eight-dimensional (8D) scale of measuring the sustainability of overall innovation capability construct. The dimensions of the scale were strategic management, supportive culture and structure, resource allocation, communication and networking, knowledge and technology management, idea management, project development, and commercialization capabilities.