Challenges in Introducing Innovations in an Industrial Cluster Manufacturing Gold & Silver Jewelleries

Abstract

Entrepreneurship Development Institute of India (EDI) is engaged in developing a gold and silver manufacturing cluster in Rajkot. The cluster has about thirty thousand units and ninety eight percentages of these units are micro units. While conducting a diagnostic study of the cluster, EDI did technology mapping and technological gap analysis. The study resulted in six innovations involving moderate technologies essential for the cluster in order to improve the quality and productivity of the units. The response for adopting these technologies have been noted by contacting a sample of entrepreneurs and asking them questions related to acceptance of the innovations. The introduction of these technologies offered resistance for adoption among the micro units. EDI therefore, identified variable factors which are particularly important for acceptance of the technology. Subsequently, a mathematical model was developed taking one variable as resistance to innovations and other variables related to conventional characteristics of entrepreneurs. This model analyses and synthesises the factors which are ultimately responsible for the acceptability of the innovations by the cluster units. This research paper is based on grassroot findings of enterprises in Rajkot, India. It concludes that the challenges of introducing innovations vary according to the nature and characteristics of the enterprises.