A SYSTEMATIC LITERATURE REVIEW ON ADVANCING INNOVATION CAPABILITIES WITHIN SMALL AND MEDIUM-SIZED ENTERPRISES (SMES)
Abstract
Small and medium-sized enterprises (SMEs) constitute a significant segment of the economy, yet their capacity for innovation often remains disregarded. This oversight disrupts the advancement of innovation within SMEs, particularly due to the unique challenges they encounter. The existing literature lacks insights in how SMEs can effectively innovate within their specific contexts. Hence, the primary objective of this study is to clarify the concept of innovation capabilities within SMEs and support these insights with empirical evidence. A comprehensive review of empirical literature on SME innovation has been conducted, identifying critical insights into the factors of SMEs' innovation capacity. The findings emphasize the vital role of factors such as organizational culture, vision and strategy, organizational intelligence, creativity, and idea management in driving SMEs' innovation capabilities. Understanding these variables is valuable for SME managers to make informed decisions regarding enhancing their organization's innovation capabilities. Such informed decision-making stands to influence strategy formulation, resource allocation, and the creation of an innovative culture within SMEs.