Impact of Innovation Capabilities on Business Sustainability in Small and Medium Enterprises

Abstract

The rationale of this study was to investigate the effect of innovation types on business sustainability in the small and medium enterprises (SMEs). Quantitative approach was used for collecting the data and fulfilling the stated objective. Specifically, the data was collected from 171 employees in SMEs in the Kingdom of Saudi Arabia. The analysis for the collected data was conducted using the partial least square approach (PLS-SEM). The findings showed that product innovation as well as service innovation have significant positive impacts on business sustainability. The results further confirmed that process innovation is vital for achieving business sustainability. Finally, the outcomes verified that marketing innovation has a significant impact on business sustainability. The results confirmed the significance of innovation capabilities in helping entrepreneurs in SMEs to sustain their businesses and improve their competitive strengths.