Innovation Infrastructure and Innovation Propensity for SMEs Business Performance

Abstract

The study examines the effect of innovation infrastructure (including organizational learning and creativity and empowerment) on innovation propensity for the success of business performance of SMEs. In addition, technological capabilities have been investigated in this study as a moderating factor on the relationship between innovation propensity and business performance. The data were collected through a cross-sectional survey of 510 SMEs in Oman and analyzed through structural equation modelling using SmartPLS software. The results of structural equation modelling indicate the strong and significant positive effect of innovation infrastructure on innovation propensity and SMEs business performance. We also found that technological capabilities moderate on this relationship. This research holds a great extent of significance in context of the current trend and situation of Oman and provides further contribution in the path of SMEs development in Oman. The research offers an insight to the academicians and other vested interested groups to provide required assistance such as training programs to the SMEs and generates a guideline on innovation related practices. This study adds knowledge to the theoretical perspective by exploring the contribution of the unique role of innovation propensity on the possibility of practicing business performance.