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The aim of this study is to discover the barriers to innovation in Kosovo service and manufacturing firms. In accordance with the research objectives, this study presents a comparison between service and manufacturing firms regarding barriers to innovation. The study is exploratory and a mixed methodology is used, while the findings are compared with the most recent literature. The findings indicate that traditional management practices and state policies are hindering innovation, although there is a general recognition for change. Additionally, resistance to change and traditional operational practices are found to impede innovation. Lastly, lack of planning skills, lack of financial resources, fear of failure and lack of adoption of an innovation culture are found to be fundamental factors in impeding innovation in Kosovo firms. The contribution of this research is in enriching and extending the current knowledge of barriers to innovation for academia, practitioners and readers. Notably, this is a unique contribution for Kosovar academics and practitioners interested in the main factors that impede innovation.

Barriers to innovation in services and manufacturing firms: The case of Kosovo