Innovation management in market-oriented SMEs: learning and internal arrangements for innovation

Abstract

Purpose

This study aims to investigate the role of market orientation (MO) in improving learning for innovation in small and medium-sized enterprises (SMEs) through the facilitation of the organisational structure and links to innovation.

Design/methodology/approach

The data for this research were collected through a survey that was applied to a sample of 169 SMEs in Ecuador. Existing scales were used to measure all the studied variables, i.e. MO, organisational structure for innovation, linkages and learning for innovation. The last three variables correspond to the characteristics of the innovation management process. Partial least square path modelling was used to analyse the data using the SmartPLS 2.0 software.

Findings

The results showed that MO enhances the learning for innovation in firms both directly and indirectly through improving organisational structure and linkages towards innovation. The research finding also showed that organisational structure for innovation is more important to enhance learning than linkages. Specifically, the mediation between MO and learning through linkages is smaller than the mediation through the organisational structure.

Practical implications

The study informs executives of the relevance of developing MO as a way of improving learning for innovation, which in turn, is favoured by an organisational structure that supports creativity and technological changes and by the internal and external linkages for innovation in market-oriented firms.

Originality/value

The findings of this study provide new insights regarding how MO can work together in an innovative context and highlight the importance of MO as an enabler of innovation characteristics in SMEs. This study also contributes to the existent innovation literature by shedding light on strategic questions regarding the development of innovation process in market-oriented SMEs. Specifically, it provides some evidence regarding the nature of innovation process in SMEs, which can orient future studies focused on the understanding of how successful innovation occurs.

Citation

Didonet, S. and Diaz-Villavicencio, G. (2020), "Innovation management in market-oriented SMEs: learning and internal arrangements for innovation", International Journal of Organizational Analysis, Vol. 28 No. 5, pp. 985-1003. https://doi.org/10.1108/IJOA-09-2019-1885