The innovation capability equation: A systematic review of global determinants of SME’s success
Competitiveness and long-term sustainability are closely tied to the innovation capability of small and medium-sized enterprises (SMEs). However, a systematic understanding of the key determinants of this capability remains limited and fragmented. While prior studies have examined individual innovat...
Saved in:
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2025-07-01
|
| Series: | Journal of Innovation & Knowledge |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2444569X25001027 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849682856783118336 |
|---|---|
| author | Mariza Tsakalerou Akmaral Abil Vincent Ribiere Yevgeniy Lukhmanov Narkes Tynybayeva |
| author_facet | Mariza Tsakalerou Akmaral Abil Vincent Ribiere Yevgeniy Lukhmanov Narkes Tynybayeva |
| author_sort | Mariza Tsakalerou |
| collection | DOAJ |
| description | Competitiveness and long-term sustainability are closely tied to the innovation capability of small and medium-sized enterprises (SMEs). However, a systematic understanding of the key determinants of this capability remains limited and fragmented. While prior studies have examined individual innovation factors, few have comprehensively integrated the internal and external dimensions that shape the innovation capacity of SMEs across diverse contexts. In response to recent global disruptions and rapid technological transformations, this study addresses a critical gap by conducting a systematic literature review (SLR) and bibliometric analysis of 122 high-quality empirical studies published between 2020 and 2024.Guided by the central question—what are the most influential determinants of innovation capability in SMEs, and how do these vary over time and across regions—this review synthesizes various empirical findings. Six major determinants are identified: Knowledge and Learning Capabilities (r = 0.98), Organizational Structure and Culture (r = 0.96), Innovation Management and Strategy (r = 0.81), External Networks and Collaborations (r = 0.70), Market Orientation and Customer Insights (r = 0.47), and Technology and Digitalization (r = 0.05). Additionally, the analysis identifies cross-cutting cited factors, such as Entrepreneurial Orientation and Absorptive Capacity that emerge as enablers. SME innovation capability is thus shaped by strategic, cultural, and knowledge-based determinants, alongside these aforementioned factors.This study adopts a hybrid method that combines a structured SLR with bibliometric coupling using VOSviewer to map thematic clusters and publication trends. The review reveals notable geographical and temporal patterns in SME innovation research, highlighting China’s consistent leadership in technology-oriented studies. Moreover, Knowledge Management, External Networks, and Digital Transformation emerge as an interconnected foundation for sustainable innovation in SMEs. Compared to earlier frameworks, this study offers a key advantage by explicitly incorporating geographical and temporal dynamics into the analysis. This contextual approach deepens our understanding of how the relevance of innovation capability determinants shifts across regions and periods, enabling more targeted and adaptive strategies. Thus, this research provides a systems-oriented foundation for future longitudinal studies that examine how interconnected determinants collectively drive sustainable innovation outcomes. |
| format | Article |
| id | doaj-art-37a6ca02ce904c3c813417e22b7eb0c4 |
| institution | DOAJ |
| issn | 2444-569X |
| language | English |
| publishDate | 2025-07-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Innovation & Knowledge |
| spelling | doaj-art-37a6ca02ce904c3c813417e22b7eb0c42025-08-20T03:24:03ZengElsevierJournal of Innovation & Knowledge2444-569X2025-07-0110410075710.1016/j.jik.2025.100757The innovation capability equation: A systematic review of global determinants of SME’s successMariza Tsakalerou0Akmaral Abil1Vincent Ribiere2Yevgeniy Lukhmanov3Narkes Tynybayeva4Department of Civil and Environmental Engineering, Nazarbayev University, Astana, Kabanbay Batyr ave. 53, Kazakhstan; Corresponding author.Department of Civil and Environmental Engineering, Nazarbayev University, Astana, Kabanbay Batyr ave. 53, KazakhstanInstitute for Knowledge and Innovation Southeast Asia (IKI-SEA), Bangkok University, Bangkok, ThailandDepartment of Civil and Environmental Engineering, Nazarbayev University, Astana, Kabanbay Batyr ave. 53, KazakhstanDepartment of Civil and Environmental Engineering, Nazarbayev University, Astana, Kabanbay Batyr ave. 53, KazakhstanCompetitiveness and long-term sustainability are closely tied to the innovation capability of small and medium-sized enterprises (SMEs). However, a systematic understanding of the key determinants of this capability remains limited and fragmented. While prior studies have examined individual innovation factors, few have comprehensively integrated the internal and external dimensions that shape the innovation capacity of SMEs across diverse contexts. In response to recent global disruptions and rapid technological transformations, this study addresses a critical gap by conducting a systematic literature review (SLR) and bibliometric analysis of 122 high-quality empirical studies published between 2020 and 2024.Guided by the central question—what are the most influential determinants of innovation capability in SMEs, and how do these vary over time and across regions—this review synthesizes various empirical findings. Six major determinants are identified: Knowledge and Learning Capabilities (r = 0.98), Organizational Structure and Culture (r = 0.96), Innovation Management and Strategy (r = 0.81), External Networks and Collaborations (r = 0.70), Market Orientation and Customer Insights (r = 0.47), and Technology and Digitalization (r = 0.05). Additionally, the analysis identifies cross-cutting cited factors, such as Entrepreneurial Orientation and Absorptive Capacity that emerge as enablers. SME innovation capability is thus shaped by strategic, cultural, and knowledge-based determinants, alongside these aforementioned factors.This study adopts a hybrid method that combines a structured SLR with bibliometric coupling using VOSviewer to map thematic clusters and publication trends. The review reveals notable geographical and temporal patterns in SME innovation research, highlighting China’s consistent leadership in technology-oriented studies. Moreover, Knowledge Management, External Networks, and Digital Transformation emerge as an interconnected foundation for sustainable innovation in SMEs. Compared to earlier frameworks, this study offers a key advantage by explicitly incorporating geographical and temporal dynamics into the analysis. This contextual approach deepens our understanding of how the relevance of innovation capability determinants shifts across regions and periods, enabling more targeted and adaptive strategies. Thus, this research provides a systems-oriented foundation for future longitudinal studies that examine how interconnected determinants collectively drive sustainable innovation outcomes.http://www.sciencedirect.com/science/article/pii/S2444569X25001027O310 Innovation and Invention: Processes and IncentivesO320 Management of Technological Innovation and R&DO330 Technological Change: Choices and ConsequencesDiffusion ProcessesO340 Intellectual Property and Intellectual CapitalO360 Technological Change: Open Innovation |
| spellingShingle | Mariza Tsakalerou Akmaral Abil Vincent Ribiere Yevgeniy Lukhmanov Narkes Tynybayeva The innovation capability equation: A systematic review of global determinants of SME’s success Journal of Innovation & Knowledge O310 Innovation and Invention: Processes and Incentives O320 Management of Technological Innovation and R&D O330 Technological Change: Choices and Consequences Diffusion Processes O340 Intellectual Property and Intellectual Capital O360 Technological Change: Open Innovation |
| title | The innovation capability equation: A systematic review of global determinants of SME’s success |
| title_full | The innovation capability equation: A systematic review of global determinants of SME’s success |
| title_fullStr | The innovation capability equation: A systematic review of global determinants of SME’s success |
| title_full_unstemmed | The innovation capability equation: A systematic review of global determinants of SME’s success |
| title_short | The innovation capability equation: A systematic review of global determinants of SME’s success |
| title_sort | innovation capability equation a systematic review of global determinants of sme s success |
| topic | O310 Innovation and Invention: Processes and Incentives O320 Management of Technological Innovation and R&D O330 Technological Change: Choices and Consequences Diffusion Processes O340 Intellectual Property and Intellectual Capital O360 Technological Change: Open Innovation |
| url | http://www.sciencedirect.com/science/article/pii/S2444569X25001027 |
| work_keys_str_mv | AT marizatsakalerou theinnovationcapabilityequationasystematicreviewofglobaldeterminantsofsmessuccess AT akmaralabil theinnovationcapabilityequationasystematicreviewofglobaldeterminantsofsmessuccess AT vincentribiere theinnovationcapabilityequationasystematicreviewofglobaldeterminantsofsmessuccess AT yevgeniylukhmanov theinnovationcapabilityequationasystematicreviewofglobaldeterminantsofsmessuccess AT narkestynybayeva theinnovationcapabilityequationasystematicreviewofglobaldeterminantsofsmessuccess AT marizatsakalerou innovationcapabilityequationasystematicreviewofglobaldeterminantsofsmessuccess AT akmaralabil innovationcapabilityequationasystematicreviewofglobaldeterminantsofsmessuccess AT vincentribiere innovationcapabilityequationasystematicreviewofglobaldeterminantsofsmessuccess AT yevgeniylukhmanov innovationcapabilityequationasystematicreviewofglobaldeterminantsofsmessuccess AT narkestynybayeva innovationcapabilityequationasystematicreviewofglobaldeterminantsofsmessuccess |