Influence of managerial practices, productivity, and change management process on organizational innovation capability of small and medium businesses

Abstract

Purpose

This paper aims to examine the influence of managerial practices, productivity and change management process (CMP) on organizational innovation capability of small and medium businesses. This study also investigates the moderating role of technological turbulence (TT) on organization capability.

Design/methodology/approach

A theoretical model was developed based on existing literature and theories. It was then validated using the partial least squares structural equation modeling technique to analyze 327 responses from small and medium businesses. Moderator analysis was conducted to investigate how TT moderates organizational innovation capability.

Findings

This study found that management practices have a significant and positive influence on the innovation capability of small and medium business. The study also found that both CMP and modern technology adoption are crucial toward improving their innovation capability. Finally, the study also demonstrated that TT has a significant impact on organizational innovation capability.

Research limitations/implications

This research study has proposed an effective theoretical model of the relationship between managerial practices and organizational innovation capability. The proposed model is effective in demonstrating to managers and leaders of small and medium businesses the importance of managerial practices, CMP and the adoption of modern technologies on organization innovation capability, which can help to develop new products.

Originality/value

This research is unique, as the proposed model is the first of its kind to establish the relationship between managerial practices of small and medium businesses with organizational innovation capability. No other extensive study has proposed such a model especially for these businesses. Also, the explanative power of the proposed model is 72%, which shows the effectiveness of the proposed model.

Citation

Chatterjee, S., Chaudhuri, R., Vrontis, D. and Galati, A. (2023), "Influence of managerial practices, productivity, and change management process on organizational innovation capability of small and medium businesses", European Business Review, Vol. 35 No. 5, pp. 839-859. https://doi.org/10.1108/EBR-02-2023-0049