2026· International journal of research and innovation in social science· 0 citations
Abstract
This study investigates the relationship between innovation adoption and organizational growth among Small and Medium Enterprises (SMEs) in Imo State, Nigeria. Innovation adoption, encompassing product, process, and technological innovations, is widely recognized as a key driver of firm performance and competitiveness. Using a quantitative research design, data were collected from 334 SMEs through structured questionnaires, with 320 valid responses analyzed. Descriptive statistics revealed moderate to high adoption of innovations, with product innovation being the most prevalent. Correlation and multiple regression analyses indicated that all three types of innovation significantly predict organizational growth, with product innovation having the strongest impact. Key challenges to innovation adoption included financial constraints, infrastructural deficits, limited managerial competence, and resistance to change. The study concludes that strategic adoption of innovations is crucial for SMEs’ growth and recommends that SMEs prioritize product and process innovations, adopt appropriate technologies, and build managerial capacity. Policymakers are encouraged to improve access to finance, infrastructure, and technical support to foster SME innovation and growth.
PURPOSE: This study investigates the multidimensional factors associated with innovation outcomes among innovation-active small and medium-sized enterprises (SMEs) in the Colombian service sector, an emerging economy characterized by financial asymmetries and fragmented innovation support and knowledge-transfer frameworks. The objective is to examine how aggregate funding structures, institutional linkages, and innovation-oriented investments relate differentially to the incidence of product innovation (market-oriented) and process innovation (internally oriented). By disentangling these pathways among innovation-active firms, the study provides evidence on how resource configurations shape innovation trajectories in contexts with relatively low technological intensity. METHODOLOGY: The study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) using firm-level microdata from 2,782 innovation-active service-sector SMEs derived from Colombia’s VIII Survey of Technological Development and Innovation (EDIT VIII 2020–2021). All constructs are first-order composites, measured formatively with non-redundant binary indicators that capture multidimensional resource configurations. Two independent structural models are estimated to represent distinct innovation pathways: one explaining the incidence of product and service innovations, and another capturing process-related innovations associated with operational and organizational improvements. FINDINGS: The results reveal a clear asymmetry in the patterns of association observed across innovation outcomes. Institutional support shows the strongest association with product innovation (β = 0.416), indicating that connectivity with the broader innovation ecosystem—universities, public agencies, and international partners—helps compensate for limited internal R&D capacity in SMEs. Conversely, innovation investment, particularly in intangible assets such as software, training, and intellectual property, shows the strongest association with process innovation (β = 0.371), highlighting the role of internal capability building for operational upgrading. Funding sources show a positive but comparatively modest association in both models (β = 0.07), suggesting that financial access operates primarily as an enabling condition when effectively translated into innovation investments and institutional collaboration. IMPLICATIONS: These findings highlight the importance of integrated innovation support mechanisms that extend beyond credit provision. For policymakers, strengthening institutional linkages and knowledge-transfer channels appears particularly effective for fostering market-oriented innovations. For firm managers, prioritizing investment in intangible assets and participating in collaborative networks may help mitigate structural resource constraints and enhance innovation outcomes. ORIGINALITY & VALUE: This study contributes to the literature on innovation in emerging economies by providing context-sensitive evidence on differentiated innovation pathways in service-sector SMEs. Methodologically, it demonstrates the usefulness of composite-based modeling for analyzing national innovation survey data with dichotomous indicators and complements the analysis with an Importance–Performance Map Analysis (IPMA).
Yaneth P. Romero-Alvarez, Katherinne Salas-Navarro, Lisana B. Martinez· Journal of Entrepreneurship,...· 1 citation
Most Small and Medium Enterprises (SMEs) in Nigeria have engaged in various innovation strategies, including market and process innovations, while organizations like SMEDAN provide support through training and resources. Despite these initiatives, many SMEs continue to face performance challenges. This study examined the effect of market innovation and process innovation on the performance of SMEs in Karu Local Government Area, Nasarawa State. A survey research design was employed, with structured questionnaires administered to a total of 346 SME owners and managers. The data were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM) to test the formulated hypotheses. The study found a positive and significant effect of market innovation on SME performance, while process innovation showed a negative and insignificant effect. The study recommends that SMEs prioritize adopting innovative marketing strategies to enhance customer engagement and market positioning. Additionally, SMEs should carefully implement process innovations in alignment with their operational goals to avoid inefficiencies. Collaborating with industry experts could further optimize their innovation strategies, leading to improved overall performance.
Samuel Henry Efe, Odonye Osekweyi Yakubu· International journal of res...· 0 citations
This study examines the role of strategic flexibility (SF) in supporting sustainable growth among small and medium-sized enterprises (SMEs) operating in an emerging economy context. Specifically, it investigates the relationships between SF, business model innovation (BMI), competitive advantage (CA), and firm performance (FP) in Iranian SMEs. Drawing on the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT), the study empirically examines a capability–innovation–performance model and contributes by extending existing theoretical relationships to the context of SMEs in an emerging economy. Using structural equation modeling (SEM), data were collected through 391 validated questionnaires from SMEs across different sectors in Iran. The findings reveal that SF has a direct and significant effect on both BMI and CA, while BMI positively influences CA and FP. However, CA does not show a significant direct effect on FP, suggesting that competitive positioning alone may be insufficient to generate performance outcomes in uncertain and resource-constrained environments. The results indicate that adaptive and innovation-oriented capabilities play a central role in enhancing long-term organizational resilience and sustainable performance among SMEs operating under institutional and market volatility.
Mohammadsadegh Omidvar, Giovanna Lusini, Maria Palazzo· Sustainability· 0 citations
Financial sustainability is a decisive condition for small and medium-sized enterprises (SMEs) because it determines whether firms can maintain liquidity, generate stable profitability, absorb shocks, and finance growth. Drawing on Dynamic Capability Theory and the Resource-Based View, this study examines how managerial capability contributes to SME financial sustainability through product innovation and how access to finance strengthens the innovation-sustainability relationship. The research used a quantitative survey design involving 350 SME owners and managers in West Java, Indonesia, selected through purposive sampling. Data were collected using a structured seven-point Likert questionnaire and analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that managerial capability has a strong positive effect on product innovation (beta = 0.727; t = 19.755; p < 0.001), product innovation positively affects financial sustainability (beta = 0.411; t = 4.876; p < 0.001), and managerial capability directly improves financial sustainability (beta = 0.231; t = 5.422; p < 0.001). Product innovation significantly mediates the effect of managerial capability on financial sustainability (indirect effect = 0.299; t = 5.742; p < 0.001), while access to finance positively moderates the effect of product innovation on financial sustainability (beta = 0.218; t = 3.108; p = 0.002). The findings support a Dynamic Capability-Based Financial Sustainability Model for SMEs, suggesting that managerial capability becomes financially meaningful when translated into innovation and supported by adequate financial access. The study contributes to strategic management, entrepreneurship, and SME sustainability literature by clarifying the capability-innovation-finance mechanism through which SMEs improve long-term financial viability in an emerging economy context.
Keywords: managerial capability; product innovation; access to finance; financial sustainability; SMEs; dynamic capability; PLS-SEM
Duduh Sujana, Nugraha Nugraha, D. Disman et al.· Jurnal Ilmiah Manajemen Kesa...· 0 citations
The contributions of Small and Medium Enterprises (SMEs) to the economic development of emerging economies, including Malaysia, are undeniably significant. Recent reports indicate that the importance of such contributions has intensified over the years, prompting the government to allocate substantial resources aimed at enhancing the infrastructure and mechanisms for SME development. Despite these efforts, sustainability within SMEs remains a critical challenge that requires further examination. Various factors, including entrepreneurial competencies and innovation capabilities, have reportedly impeded the growth of these enterprises. Therefore, this study aims to explore the connection between company success, innovation, and entrepreneurial competency among Northern Malaysian SMEs. Employing a simple random sampling procedure, a total of 197 questionnaires were collected and further investigated and analyzed using the latest version of SPSS (SPSS 28.0). The statistical results show that while innovation has a negative association with SME performance, entrepreneurial competency has a strong positive relationship with business performance. Furthermore, it is evident that both entrepreneurial competencies as well as innovation elements collectively exert influence on the performance of the businesses. From a policy perspective, these findings underscore the necessity to bolster entrepreneurial soft skills and actively promote innovative practices within SMEs. This initiative is crucial for enhancing business confidence and capacity for achieving sustainable performance. Practically, this study provides important acumen, particularly on the management and innovation strategies employed by entrepreneurs within Malaysia's as well as worldwide SME landscape.
Mohd Sufli Yusof, Muhamad Ali Imran Kamarudin, Zulianis Alias et al.· PaperASIA· 0 citations
Purpose – This study examines the extent to which institutional environment influences innovation capacity, supply chain performance, and competitive advantage among small and medium enterprises (SMEs) in Ghana, drawing insights from institutional theory.
Design/methodology/approach – The study employed a quantitative research design with survey strategy across five regions of Ghana (Ashanti, Western, Eastern, Northern, and Greater Accra). Primary data was collected from 250 SMEs using a structured questionnaire instrument. Descriptive and inferential statistical tools including hierarchical multiple linear regression were used to analyze the data.
Findings – The results reveal that normative institutional systems exert a significant positive influence on innovation capacity among SMEs. Both normative systems and supply chain innovation positively and significantly influence supply chain performance. Furthermore, firm performance and supply chain innovativeness positively influence competitiveness. However, regulatory and cognitive institutional components showed statistically non-significant effects on innovation capacity and performance.
Originality/value – This study extends institutional theory to the supply chain context in sub-Saharan Africa, providing empirical evidence on how normative institutional pressures shape innovation and performance outcomes among Ghanaian SMEs.
Emmanuel Nii Tackie, Sheriff Adjei Odonkor· International journal of res...· 0 citations