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Innovation is widely recognized as a major driver of long-term corporate growth. Successful innovators who manage to dominate new markets enjoy Schumpeterian rents for their inventions. How then can a firm dominate a new market? Two streams of literature have proposed opposite answers to this question.

The First Mover approach indicates that by setting up a strong differentiation strategy, companies are supposed to create a new area where profits abound. This approach is supported especially by Kim and Mauborgne (2004) who coined the term Blue Ocean to describe it.

The Fast Second approach, defended by Markides and Geroski (2005), contends, on the contrary, that companies should not try to become pioneers, but should target the newly created market in second position, and colonize it.

But neither Blue Ocean nor Fast Second are able to convincingly explain successful market domination. Our study of 24 innovation cases suggests that innovation which leads to market domination is instead achieved by using four kinds of breakthroughs, separately of simultaneously.

Changes in regulation trigger changes in the innovation environments. They may block specific development trajectories, but they may simultaneously inspire and stimulate completely new openings. In this study, we look into regulation that aims to address environmental problems and facilitate creation and diffusion of sustainable technologies and processes as we examine the responses of innovators to the regulation on plastic use and production—specifically, the so-called SUP-directive. A multiple-case study comprising six companies suggests that companies manage (with) the regulation-induced innovation and needs for change by adopting three distinctive strategies: (1) proactive change orientation, (2) reactive opportunity capturing, or (3) reactive survival mode. Acknowledging that sustainability-oriented regulation may push companies with environmentally friendly innovation activities and solutions towards reactive survival mode highlights the need for managerial agility in adjusting the solutions and the ability to adopt parallel innovation strategies. Observing the strategies adopted by innovators also is informative when evaluating whether the regulation meets its profound goals and intended effects.

With the advent of e-commerce, India is witnessing a metamorphosis in the way business is done. With an upward trajectory, Indian e-commerce industry is poised to become the second largest market in the world by 2034. All thanks to its steady growth rate. Driving this ascent is the predominantly younger demographic profile of India, increased internet penetration and relatively better economic performance of the country, ably aided by various government policies pertaining to FDI (Foreign Direct Investment) in this sector. With this rapid change in the nature of business, the aspirations and expectations of the employees are also going through a transformation, necessitating a differential approach to be adopted by the e-commerce organization as far as their HR policies and practices are concerned, calling for more agile, quirky and especially out-of-the-box measures to live up to the pace of the disruption laden environs of the e-commerce industry. Owing to its round-the-clock functioning 365 days a year, e-commerce industry has had to rethink almost all the aspects of human resources management; right from talent acquisition, development, management to retention. Automation of HR processes, gamification of various processes contributing to higher engagement and enhanced employee experience and complete digitization of HRM have found ready acceptance within the industry. Most importantly, apart from the paradigm shift in terms of process and practices, there has been a noticeable transformation in the thought process in the e-commerce industry. Which in-turn has aided the transformation of HRM in the industry.

India is a land of diversity, where diverse cultures, religions, languages and ethnicities have increasingly driven innovation and creativity, giving a boost to the development of small- and medium-sized enterprises (SMEs) in the country. Given that 70% of India’s rural population still primarily depends on agriculture for their livelihood and most of the population lives in villages and Tier 1 and Tier 2 cities, SMEs in these areas have been playing a pivotal role in the inclusive growth of the Indian economy since independence. From cottage industries to the Internet of Things (IoT) and smart technologies or large manufacturing industries, SMEs account for the majority of enterprises worldwide, contributing two-thirds of employment opportunities. Studies conducted in the past show that SMEs have constantly been confronted with various challenges, such as lack of timely access to credit facilities, shortage of manpower and skills, and adoption of new technologies. The outbreak of the COVID-19 crisis in the past few years has crippled their regular activities. However, the crisis has fundamentally changed not only the mindsets, perceptions, and the way businesses, SMEs, organizations, institutions, and individuals operate but also given an opportunity amid the crisis to be more resilient and embrace the digital platforms to survive and eventually achieve success. The aim of this chapter is to identify the future prospects of SMEs through thriving digitization while proposing a framework with a new managerial mindset as a strong force of SME specificities. It also focuses on policy intervention to optimize businesses in order to achieve sustainable economic growth.

This chapter is divided into three main parts. The first part focuses on defining and explaining the purpose of SMEs in India, wherein the significant benefits of digitization as a strategy for driving improved performance and productivity of SMEs are explained. The second part deals with describing the challenges and struggles of Indian SMEs from a managerial perspective while focusing on the new mindset of SME managers and owners toward the organic development of their businesses. The third and most crucial part examines policy interventions and support for SMEs and a new entrepreneurial mindset, and it suggests a model for inclusive growth in an economy.