Analyzing the Relationship Between Market Competition and Business Innovation

This research investigates the impact of process innovation as a moderator between market competitiveness and the performance of SMEs in developing countries. When it comes to creating jobs, fostering innovation, and increasing GDP, developing economies rely heavily on small and medium-sized companies (SMEs). The study polled 135 SMEs in India. The study probed the connections between process innovation, SME performance, and market rivalry using partial least squares structural equation modelling (PLS-SEM). The findings showed that while the moderated hypotheses were not confirmed, three of the direct hypotheses were, suggesting that there is a favorable association between market competitiveness and the performance of SMEs. Owners, managers, and lawmakers of SMEs may benefit greatly from these findings.