Innovative culture of small and medium Kosovar enterprises: an empirical study
by Lura Rexhepi Mahmutaj
International Journal of Work Innovation (IJWI), Vol. 3, No. 1, 2022

Abstract: Innovativeness is one of the fundamental instruments of growth strategies that enable firms to enter new markets, increase existing market share, and achieve a competitive advantage. Encouraging innovation in SMEs remains a key initiative to stimulate firm growth, especially in developing countries, like Kosovo, where innovation is mostly incremental. Even though SMEs are characterised by resource scarcity and high-risk failure, they still are, considered more productive because of their flexibility to adapt to market changes. One of the most significant influences on promoting innovation is organisational culture. A creative, innovative culture can be developed by choosing the right innovation strategy, building effective development processes, making resource commitments, and leveraging capabilities. Few studies examine the characteristics of innovation culture among SMEs in developing countries. This study aims to examine the organisational culture in SMEs that have developed innovations. Twenty-four SMEs participated in this research through interviews. The results showed that top management leadership is crucial to building an innovation culture within SMEs. These findings substantiated the importance of having a creative and competitive organisational culture in SMEs.

Online publication date: Wed, 20-Jul-2022

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