SYSTEMATIC LITERATURE REVIEW ON DETERMINANTS OF ORGANIZATIONAL INNOVATION ON SME PERFORMANCE: RESEARCH TRENDS, DATA SETS, AND METHODS

Abstract

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. 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. Knowledge sharing is one of the ways that companies can optimize information and knowledge obtained from partners and competitors in identifying market opportunities. 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. 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. Of these twelve methods, three were identified as the most widely used in the abovementioned topic. They are Qualitative approaches (QA), Linear Regression Analysis (LRA), and Structural Equation Modeling (SEM).