Paper Title
UNPACKING THE FACTORS DRIVING INNOVATION IN MANUFACTURING SMES

Abstract
Abstract - Problem statement:While prior studies on innovation have mainly concentrated on larger companies, this study fills the gap by specifically examining the antecedents of innovation in small and medium-sized enterprises (SMEs) from the manufacturing sector. Accordingly, this research adds value by addressing the lack of literature focusing on the discriminant variables distinguishing low and high-innovative manufacturing SMEs. More specifically, this study focuses on the impact of technological, organizational, and environmental factors on the level of innovation outcomes in manufacturingSMEs. Methods:By employing the Technology-Organization-Environment theory, the research employs discriminant analysis to assess the innovation level of a dataset consisting of manufacturing SMEs. Results:The findings reveal that low and high-innovative firms exhibit differences in terms of their information technology (IT) knowledge and infrastructure, commitment-based human resources (HR) selection practices, exploitative innovation, and organizational capital. Conclusion:The practical implications of the study suggest that firms should allocate additional resources towards developing IT knowledge and infrastructure, implementing commitment-based HR selection practices, and enhancing organizational capital to achieve greater innovation outcomes. Furthermore, the identification of exploitative innovation as a significant discriminant variable highlights the effectiveness of incremental innovation in SMEs, allowing them to build upon previous exploratory efforts. Keywords: Innovation, Information Technology, Commitment-Based Human Resources, Environmental Dynamism, Intellectual Capital.