Authors
Revd Chukwunonso Joseph Nosike
Department of Business Admnistration
Nnamdi Azikiwe University, Awka
cj.nosike@unizik.edu.ng
Dr. Okafor Ifeoma Pathrolina
Department of Business Admnistration and Management
Federal Polythecnic Oko
okaforifeoma95@yahoo.com
Ajekwe Ogechukwu Cordelia
Department of Business Admnistration
Nnamdi Azikiwe University, Awka
oc.pius@unizik.edu.ng
Abstract
Small and Medium Enterprises constitute the backbone of
global economies, contributing significantly to
employment, GDP growth, and regional development.
However, their capacity to innovate remains constrained
by unique structural, financial, and operational challenges that distinguishes them from larger corporations. This
paper provides a comprehensive analysis of innovation
management in SMEs, synthesizing contemporary
literature from 2020 to 2025 to identify the key
determinants, barriers, and enablers of successful
innovation. The study employs a systematic review
methodology, examining peer-reviewed articles that
explore the multifaceted nature of SME innovation. The
findịngs reveal that innovation capability in SMEs is
determined by six interconnected factors: knowledge and
learning capabilities, organizational structure and culture,
innovation management and strategy, external networks
and collaborations, market orientation and customer
insights, and technology and digitalization. Additionally,
the paper examines the emerging challenges posed by
Industry 5.0 transitions, the role of government funding
mechanisms, and the imperative of innovation
ambidexterity in resource-constrained environments. The
analysis demonstrates that successful innovation
management requires a holistic approach that integrates
internal capabilities with external partnerships, while also
addressing the unique contextual factors that shape SME
operations across different regions and sectors. The paper
concludes with strategic recommendations for SME
managers, policymakers, and researchers, emphasizing the
need for targeted support mechanisms, capability-building
initiatives, and collaborative innovation ecosystems.
Future research directions include longitudinal studies
examining innovation trajectories, cross-cultural
comparative analyses, and investigations into the
integration of sustainability and digitalization imperatives.
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