Authors
Revd Dr Chukwunonso Joseph Nosike
Business Administration
Nnamdi Azikiwe University, Awka
ci.nosike@unizik.edu.ng
Dr Okafor Ifeoma Pathrolina
Business Administration
Nnamdi Azikiwe University, Awka
ci.nosike@unizik.edu.ng
Ajiwe Ogechukwu Cordelia
Business Administration
Nnamdi Azikiwe University, Awka
ci.nosike@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 findings 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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