Success of organizations is mainly rooted in innovation. Nowadays innovation in the current theological place plays significant and crucial role for the organizations and most organizations seek for creation of new ideas so that utilize the knowledge for supplying new products and services for the customers and stakeholders, and accordingly they can develop necessary infrastructures for innovation. This research was conducted in order to identify factors and indexes affecting innovative capabilities in small and medium-sized enterprises with five main factors and 20 dimensions. These factors and dimensions included: Individual factor (knowledge, skill, personality characteristics, and motivation), team factor (combination, solidarity, relationship, size), organizational factor (culture, systems and processes, strategies, leadership and organization, learning), industrial factor (networking, suppliers, customers, and competition), national factor (governmental incentives, regulations, environmental conditions), and 86 indexes. Effectiveness level of these indexes on innovative capabilities was evaluated following designing the questionnaire and distributing it among 306 experts and staff of small and medium-sized enterprises of Markazi province, and research model was fitted using structural equations and IMOS software. Finally 80 indexes with 5 main factors and 20 dimensions were accepted for the designed model. According to the research, successful innovative capabilities in small and medium-sized enterprises of Markazi province require attention to all above factors, dimensions, and indexes. Also results suggested that national factor gained first rank, industry factor gained second rank, organizational factor ranked as third, group factor ranked fourth, and individual factor ranked fifth. National dimension had the strongest relationship with innovative capabilities (R2 = 0.65), and individual dimension had weakest relationship with innovative capabilities (R2= 0.15).
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