Social and Behavioral Sciences Commons^™

A review of the literature reveals that manufacturing small and medium scale enterprises (SMEs) and support institutions in developing countries, like Ethiopia, are not able to identify the major determinants that affect innovation practices and their effects. The purpose of this study is therefore to identify innovation determinants of electromechanical SMEs and examine their marginal effects. The central question of the study is: what are the determinants of innovation capacity, if any, of electromechanical SMEs in product innovation capability? As developed by Alder and Shenbar (1990), the five dimensions of innovation capability include the capacity and ability to: a) develop …