Organizational innovation for SME'S: a model for Latvia

Small and medium-sized enterprises (SMEs) can be a significant source of innovation in small economies. SMEs face challenges of limited capacity, personnel and resources for long-term investments. Additionally, they might not see and understand the benefits of innovation. Implementation of organizational innovation (OI) could give such enterprises an opportunity to improve competitiveness and develop other types of innovation. The purpose of this study is to develop a model, explaining OI through such factors as organizational culture (OC) and knowledge management (KM) in SMEs via an empirical study across various industries. Surveying 600 SMEs in Latvia, the authors explore the contributio…