Oh.

Lord Above Advance me In Knowledge (Ameen)

SMEs plays as a back bone and breathing apparatus for the economic development and sustainability of country economy. Its role in the development of the economic growth and sustainability has been widely recognized. Due to its importance, much emphasis has been put through research and publication. Most of the literature covered the characteristics of SMEs, Role in the economic development and its challenges in todays competitive world. The survival of today's organizations is largely depend on the adoption of new ways of doing business, and the way of utilizing their available resources. Thus it is needed to deeply focus on SMEs that how they will become innovative and how theses Organizations utilized the available resources to produce Cheap, fast, Unique and commercially viable product on more effective and efficient manner to survive on a sustainable basis.

The Small and Medium Enterprises (SMEs) are playing an important role in economic growth worldwide. The SMEs are a proficient user of the scare resources and domestic products, and has better linkages with other sectors of domestic economy (Jamali, Anaka, & Khooharo, 2010). Most of the countries are realizing the fact that SMEs greatly contributing to the country economy.

To strengthen the flexibility of the economy in a competitive and challenging environment are inarguable. SMEs are recognized all over the world as an engine for the economic growth, such as Employment generation, Income distribution, Taxable income, Efficient utilization of scarce resources, Stability of family income, Poverty elevation and Contribution to economy as a whole (Jasra, Khan, Hunjra, Rehman and Azam- 2011).

In the report of United Nations Industrial Development Organization (UNIDO-2005) stated that in developing countries SMEs are the main source of income generation. The only way to minimize the poverty on a sustainable basis is to focus on the development of Small scale activities. (UNIDO-05). Thus a great attention is needed to alter the current structure of SMEs.

European

Commission Report- 2010 set the below criteria while defining SMEs

Pakistan

is considered as key country in South- Asia region in current global political scenario (Rauf- 2007). Pakistan is ranked as number six country in the world according to population (CIA- 2012). The SME sector is a less formally organized sector in the country and SMEs are considered as backbone of economy, SMEs in Pakistan has better linkages with other sectors of domestic economy (Yousaf-2009). According to SMEDA it is fair to say that our economy is an economy of SMEs.

of Emp- Up To 250 Paid Up capital Up To Rs.25M Annual turnover Up to Rs.250M (SMEDA-2007)

NO

Most are One Person Show No difference B/T Assets & Liab Totally Personally Decision Making Low Productivity in Informal Sector High Productivity in Formal Sector Due to High Difference Hard to Define SMEs

For Example Small and Medium Scale Enterprises (SMIS) Micro Enterprises (MEs) Rural Enterprises (REs) Small & Medium Scale Activities (SMSAs) Informal Sector Activities (ISAs) Micro & Small Scale Activities (MSSAs)

3.2 Million Establishment in Pakistan 99 % enterprises are SMEs More Than 96% SMES have Less than 5 Emp Up to 95% Belong to Individual More than 90% SMEs Age Less than 20 Y 70% employee are Unpaid( part,Fam) 99% Organization less than 1.0 M W.Capital More Than 97% Earn Less Than 20 M P/Year 74 % SMEs in Rural Area Located in Own premises Only 7% Female are involve in Labor

Geographical Location

Punjab Sindh Khyber Pukhtoon Khawa Baluchistan + Islamabad

65% 18% 14 % 3%

Business Wise Distribution

Whole sale Retail + Hotel

53% 22%

Community + social
Others

20%
5%

SMEs Business

Agricultural & Manufacturing Mining Fishing Food & Beverage Retail & Whole Sale Ready made Garments & Hosiery Carpet & Sports Items Surgical Instruments &Foot Ware etc

Contribution Toward Economy

80 % of Industrial labor Employed in SMEs 25 % of Total Export 30 % Towards Value Addition (Providing Something More) Contribution towards GDP 4 time Greater then Large Scale SMEs Declare as High Job creator in Pakistan (GOP)

To sustain and maintain their stability in increasingly high competitive markets organisation have to focus more on innovation (Baldassarri & Saavala, 2006). Focusing on innovation is the only solution of creating competitive advantage (Rainey, 2005), increase firm performance (Ilker and Birdogan, 2011) best policy (Kim and Maubourgne 2005) and lead to high financial performance (Barney 1991, Zahra, Ireland & Hitt-2000).

The small, scarce resources and informal organisation are found more likely to benefit from pursuing innovation (Nooteboom, 1994. Vossen, 1998. Lee and Chen, 2009) and in current realm of business economic activity is shifting from larger enterprises (LEs) to SMEs (Carlsson, 1992, Laubacher and Quimby, 2003). In developing countries there is no incentive for small firms, thus facing competitive threats from large and modern firms (Romijin 96, p35).

There is no comprehensive policy prevails in Pakistan to foster the innovation activities (Sohail, Sabir and Zaheer-2011). Currently the innovation activities are limited in scope (CSF, 2009). At present Pakistan is facing capacity limitation to carry out innovation at par with the Globe (Qasim and John, 2011). Thus well planned initiatives are needed to faster innovation activities in Pakistan. Hence, the focus of this study will be on what are the key skills and competencies required by Pakistani SMEs for improving their innovativeness.

Any Firm who want to stay in 21st Century is to Focus on Innovation. The aim of the study is to list competencies/Abilities needed for every stage of innovation process of SMEs in Pakistan.

Research Questions

Main research Question What are the key (i.e. most important, highest priority) skills and competencies required by Pakistani SMEs for improving their innovativeness?

Research Questions
Sub Questions 1. What types of SMEs are serving in the target area? 2. Do innovative competencies differ across various stages of innovation? 3. What is the current level of abilities adopted by SMEs in Pakistan? 4. Whether or how firm select a bundle of strategies/ approaches towards capturing innovative abilities? 5. Are owners/Managers of the study area interested in adopting new techniques of doing business? 6. What are the barriers faced by entrepreneurs, and how it affects their strategies?

Objectives Of Research
To Answer the Research Question and to achieve the objective of research, Step 1. To classify the classes of SMEs in the research area. Step 2. To specify currently adopted (levels and types of) innovation-related skills and competencies of the major classes of SMEs in the area that were identified in (step 1) Step 3. To find out what is their current level of innovative activity (or innovative performance), and what should be understood by innovativeness in their specific context (is it product adaptation, process improvements, quality improvements? something else?)

Objectives Of Research

Step 4. To investigate in which areas the SMEs are mainly encountering skills & capability-related barriers to improving their innovation performance. (To formulate a set of required capabilities to match required higher skills and competencies to improved innovation performances) Step 5. To study the attitude and aptitude of owner/managers towards innovation, and towards efforts for skill & competence development for improved innovation performance.

Objectives Of Research

Step 6. To identify major other factors, internal and external to the firms, that they experience while trying to improve their skills & capabilities for improved innovation. (These factors could be barriers, but also factors that contribute to improvement of their competencies and skills).

It is observed that most studies carried out on innovativeness of SMEs and large organization, but no research has been yet carried out on capabilities needed for innovativeness of small and informal organizations in the target area. this research if successfully carried out will show either the level of reliability or otherwise a significant departure from existing literature of innovation abilities in SMEs.

It is hoped that the research will add to the existing body of knowledge on Key competencies needed for the innovativeness of small and informal SMEs in different stages of innovation process. It is also hoped that the research findings will be helpful to future researchers and government policy makers with regard to innovation competencies required for the every stage of innovation, to focus, assist and help that these SMEs grow and produce faster, Cheaper and commercially viable products on sustainable basis.

The big problem that may be encountered is that there is no single exact data base available for the SMEs of the targeted area. The second problem that will affect some portion of data is that the target population is almost all illiterate, So 1. First they do not know the importance of data collection and 2. The second is that they dont maintain the records. And 3. Due to Tax the respondents may be doubtful about the purpose of the research and therefore may not answer some of the questions, or supplied unclear or false information.

To list the required competencies needed for innovativeness of SMEs, a framework are divided into three stages Developmental Stage: The developmental Competencies/ abilities are those abilities that are mostly important for the firm to get ideas and frame that ideas. such as, Search/ development of ideas, Analysis/ Assessment, Free test, Required Technology Awareness and required skills. etc

Implementation Stage: In this stage, a firm can implement the developed and tested idea in the form of product or process. If the firm has the following abilities, then it can easily implement the tested idea otherwise face difficulties. Such As, Training Of The worker involved, communication, acquiring the required technology, Manufacturing Ability and Promotional / Marketing Abilities. etc

Managerial Stage: In this stage, we want to know that how managers in SMEs understand the management of innovation. The most crucial ability is the managerial ability. Such as Environment (i.e Motivation and Required Skill Personnel), Manage the whole process from developmental stage to end, Respond to change (Proficient Chang Management), To Manage outcomes of new products or process. etc

The literature organized for this study in the following manner 1. SMEs and Specially Small and Informal Organization in Developing countries. 2. Entrepreneurship 3. Innovation 4. Generalization and diffusion of innovation 5. Adult and technical education 6. Resource base view theories

The organized and systematic way toward solving research problem and to better explain the objective of research are called Research methodology. Significant feature of a good research is its chase for reality. It is very hard to reach a reliable and believable result without good research methodology (Rauf-2007). RM includes a detailed discussion on research process including, 1. Research philosophy 2. Research approaches 3. Research strategies 4. Time horizon and 5. Data collection methods with some choice decision for selection of certain methods for conducting this study

it is essential for every researcher to think about his research Methodology, before focusing on the central point of research there are important layers of the research process called onion that should be understood before taking any final decision (Saunders, Lewis and Thornhill-2000)

It is essential for every researcher to think about his research Methodology, Before focusing on the central point of research there are important layers of the research process called onion that should be understood before taking any final decision (Saunders, Lewis and Thornhill-2000) Research philosophy is the first layer of the research process The second layer showing research approaches, Third layer explains research strategies and Fourth layer refers to time horizons applied to research. The final and vital layer is about data collection methods.

1 Research Philosophy Research philosophy refers to the way that we think about the development of knowledge (Mohammed 2006). Research philosophy is in the first layer of the research process onion divided into two different categories i.e.
1. 2.

These are two different approaches toward knowledge developed.

Positivism and Phenomenology.

Our study will explore the relationship between innovative competencies and firm performance. To suggest a most important required set of innovative competencies. Considering the phenomenological perspective, our conceptual model comprising of various competencies will lead to a statistical investigation, assuming the role of an objective analysis about data that we will collect through formal and informal interview from the selected manufacturing SMEs of different sectors to know the current policies and practices and proposed a set of competencies in a systematic way in the targeted SMEs.

2. Research Approach (2nd Layer of Onion) Two Types i. Deductive Relates to Positivism: Emphasize on quantitative data ii. Inductive Related to Phenomenology: Emphasize on qualitative data Both approaches have their own strengths and weaknesses. Sometimes it seems difficult to find out everything using only one approach as both quantitative and qualitative approaches have some attached benefits. So due to explorative nature of the study a mix mode will adopt.

The general plan and ways in which researcher tries to: collect data and get answer of the developed research question, explaining source of data and possible constraints are called research strategy.

3 Research Strategy ( 3rd Layer of Onion)

Types of Research Strategy ( Six Types of research strategy are using to answer research question-Saunder et al., 2000) 1) Survey, 2) Experiments,

3)
4) 5) 6)

Case Study,
Grounded theory, Ethnography and Action research

Case Study: (1)Investigation of relatively small number of cases (2) Information gathered and analyzed about a large number of features of each case.
(3) Answers to the question why as well as what and how

 4 Time Horizons (4th Layer of Onion)

Types 1. Cross sectional: Cross sectional approach communicate a particular phenomenon at a particular time 2. Longitudinal: longitudinal research consider any phenomenon over a long time to study change and development over long period.

Saunders et al. (2000)

5. Data Collection Methods ( The 5th and important layer of Research Process Onion) 1. Sampling: The technique of unit selection for data collection. A subset of the population to represent the whole population. Types i.e. Probability and (Random Selection) Non-probability (Stratified random )

2. Secondary Data The secondary data may be extracted from various documents like government publications, earlier empirical and theoretical studies, census, personal records etc. 3. Primary Data When the researcher collects the information while doing empirical study, conducting survey or collected information through interview then the data is primary data. sources Observation, Interviewing or Questionnaire. Questionnaire or Interviewer Booklet Translation in Urdu
Composed in English first then it will be translated into Urdu (Pakistans national and understandable language) and then back translate it into English.

Journal Publication 1. International Journal Of Business and Management (2010) 2. OIDA International Journal of Sustainable Development (2012) 3. World Journal of Management (Cabells/ERA listed) (Paper Presented in Conference under review for Journal publication-2012)


1. 2. 3.

Conference Presentation

4. 5.

Reviewer

International Conference On Sustainable Development 5-7 Dec 2011 Malaysia (OIDA) Asia Pacific international conference 13-14 Feb 2012 KL Malaysia (World Business Institute Australia) International Conference on Innovation, Management and Technology Research (ICIMTR2012). Melaka, MALAYSIA: 21-22 May 2012 (IEEE-Xplore) 6th IEEE International Conference On Management Of Innovation and Technology 11-13 June 2012 Bali Indonesia. (IEEE-Xplore) 14 International Schumpeter Society (ISS) Conference Brasben Australia. 2-5 July 2012

Appointed as a Paid Reviewer by World Business Institute Australia (Managing 8 Journals)

 Any

Question Or Suggestion