ABSTRACT
In developing countries, most firms have engaged in innovation through imitating or adapting existing production technologies to local conditions rather than creating new technologies (Cooper, 1989). Innovation studies in the developing country context have paid particular attention to examine the determinants, sources, and capability of innovation, and their contribution to firm’s performance (Basant and Fikkert, 1996). Few studies, however, have investigated obstacles which block innovation or cause innovation failures.
