Variables Effective on the Innovation Model in Small and Medium Enterprises (SMEs) of Kerman-Iran

Trying to improve the performance is the goal of all organizations including customers, personnel and share-holders. Another point is that the competitive advantage yesterday does not guarantee survival tomorrow. Therefore, in today’s ever-changing competitive markets, enterprises need to change their strategies and policies in order to survive. In fact, today, innovation is considered as a competitive advantage for enterprises and organizations. This paper tries to study the variables effective on innovation and the impact of such variables on innovation outputs in Kerman’s Small and Medium Enterprises (SME’s). This paper examines various aspects of innovation and their impacts on the market, enterprises, processes and products. Data analysis is done through T-test and Regression test. The results indicate that all variables studied were effective and related. The relatedness and significance of some variables in innovation outputs were also proved in some areas. Meanwhile, it was shown that most enterprises use innovations to improve the quality of their products and to increase their market share as well.