Abstract:
Purpose: This article aims to identify the determinants of organizational innovation on the
performance of Small and Medium Enterprises (SMEs) by looking at research trends, data sets,
and research methods.
Theoretical framework : The industrial era 4.0 brings organizations, including SMEs, into a
complex, dynamic, and interconnected environment full of unpredictability and rapid change. For
this reason, SMEs need to consider internal and external factors in the study of organizational
innovation.
Design/methodology/approach : This article uses a systematic literature review method to
elaborate on the literature related to determining the impact of organizational innovation on SME
performance. Twenty-six articles reviewed in this study were sourced from Google Scholar by
adding the keyword Elsevier in the search mode.
Findings: This literature review concludes that current research on the determinants of
organizational innovation on SME performance focuses on two topics and trends: estimation and
classification. In addition, 81% of the selected studies used private datasets, and 19% used public
datasets. Twelve different methods have been applied to address the impact of organizational
innovation on SME performance. They are Qualitative approaches (QA), Linear Regression
Analysis (LRA), and Structural Equation Modeling (SEM).
Research, Practical & Social implications: The findings have practical implications for this
reason, SMEs need to consider internal and external factors in the study of organizational
innovation. Knowledge sharing is one of the ways that companies can optimize information and
knowledge obtained from partners and competitors in identifying market opportunities.
Originality/value: This study offers twelve different methods have been applied to address the
impact of organizational innovation on SME performance.
