INNOVATION CHALLENGES AND STRATEGIC RESPONSES OF SMES IN THE UAE MOBILE PHONE INDUSTRY

Ebrahim Mollik, Faisal Majeed

Abstract


The research paper analyses the uncertainty concerning innovation challenges and responses to these challenges as they relate to the small and medium-sized enterprises (SMEs) that are currently functioning under the mobile phone resale and recycling niche in the UAE. It is a qualitative, case-based study and is an interpretivist philosophy derived. As such, semi-structured interviews were conducted with 30 SME owners, managers, and industry experts. The major outcome is that SMEs encounter some serious barriers to innovation, such as the regulatory complexity involved, lack of access to funds, digital capability gap, and the continuous scepticism about refurbished products by consumers. In response, SMEs develop adaptive strategies as outsourcing for refurbishments, engaging in green branding and certifications, and aligning with national policy initiatives. This study extends and reinforces an earlier conceptual framework on SME innovation in showing the reality of constraints and practice into which innovation is moulded. Practical recommendations are made both to SMEs and policymakers to create a more enabling ecosystem for innovation in emerging markets.

JEL:  L26, O32, M21, Q56

 

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Keywords


SME innovation, innovation barriers, strategic responses, mobile phone resale, UAE emerging markets

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References


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DOI: http://dx.doi.org/10.46827/ejefr.v9i3.1992

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