Barriers to innovation for Small and Medium-sized Enterprises (SMEs), and their impact on innovative performance: Evidence from Türkiye

This research aims to examine the barriers to innovation in SMEs and the impact of these barriers on innovative performance. A descriptive-analytical approach was used and the data were collected using a customized questionnaire designed based on a review of previous relevant studies. The research community consisted of SME entrepreneurs in the Mardin province of Türkiye and the sample size was 251 enterprises. The results were analyzed using the statistical analysis program (SPSS, v.27.) The results obtained show empirical evidence that SMEs in Mardin have many barriers to innovation. The main barriers to innovation are: lack of funds in the enterprise, lack of financing sources; and these are financial obstacles. In addition, innovation is affected by knowledge barriers, which are mainly a lack of knowledge about technology. It is also affected by market barriers represented by the dominance of established companies and uncertainty about demand and deterrent barriers that is, the resistance of employees to innovation and the belief in the irrelevance of innovation. Based on the results obtained, the research offered a few suggestions such as reviewing the financing structure and sources of obtaining financing, working on increasing knowledge about technology, correctly identifying customer needs and giving more importance to the innovation culture in the company. The research has theoretical implications as it contributes to empirical evidence of the relationship between innovation barriers and innovative performance. It has practical implications because it serves public policies, as entrepreneurs and officials can improve innovative performance by reducing the impact of major barriers to innovation. Key Words: İnnovation, Barriers, Performance, Innovative Performance, SMEs.