Managerial innovation, perceived external environment, and managerial performance of SMEs

Abstract

In an economic environment characterized by increasing competition and uncertainty, SMEs are required to develop new managerial practices to enhance their managerial performance. Although the literature generally acknowledges the positive effect of management innovation on organizational performance, limited research has examined the role of the perceived external environment in this relationship, particularly in SMEs operating in emerging economies. This study investigates the effect of management innovation on managerial performance by integrating four dimensions of the perceived external environment: complexity, dynamism, uncertainty, and hostility. The study adopts a quantitative approach based on the PLS-SEM method using data collected from SMEs located in Souss-Massa. The findings reveal that management innovation has a positive and significant effect on managerial performance and enhances SMEs’ ability to better perceive and respond to their external environment. The hypotheses related to the relationships between management innovation, perceived external environment, and managerial performance are generally supported. This research contributes to the literature by providing a contextualized understanding of the effects of management innovation on SME performance within a specific regional environment.

Classification JEL : M 160, 

Paper type : Empirical Research.