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 small and medium enterprises (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 the performance of SMEs in Eastern Europe. Employing EUROSTAT data from 2012 to 2021 and using regression analysis and a graphical model, the examines basic, radical, and incremental innovation and total researcher performance in SMEs, which could enormously affect business performance in Eastern European countries. Our findings indicate that radical, incremental innovation, and total research are all favorably 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, and empirical investigations and comprehensive research are required to provide more specific knowledge and suggestions for them. 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.