Radical and incremental innovations performance in Eastern European SMEs: An empirical study of developed and emerging economies

Abstract

Assessing the effectiveness of radical and incremental innovation in SMEs in Eastern European countries is a significant issue in regional economics. In contrast, radical innovation entails the creation of wholly novel goods or organization processes that establish new markets. Progressive enhancements to current goods and processes are referred to as incremental innovation. This study explains the influence of incremental and radical innovation on performance of small and medium-sized enterprises in Eastern Europe. Employing EUROSTAT data from 2012 to 2021 using regression analysis and a graphical model, we examined basic, radical, and incremental innovation and total researcher performance in SMEs, which could enormously affect business performance in Eastern European countries. Our findings indicated that radical, incremental innovation and total research are all favourably related to the performance of SMEs and an approach to studying various innovations and their impact on SMEs. The particular performance effects of radical and incremental innovations in Eastern European SMEs might vary considerably. To give more specific knowledge and suggestions for SMEs, empirical investigations and comprehensive research are required. Our results can contribute to SMEs both theoretically and practically, providing fresh theoretical perspectives for scholars and helpful management consequences for administrators of SMEs in developing countries.