Abstract
It is believed that for small and medium-sized enterprises (SMEs), innovation is most
important to deliver performance. Literature indicates that the most significant antecedents of
innovation are learning orientation, transformational leadership, knowledge management,
and innovative culture. Further, a research gap exists regarding the mediating effect of
innovation for the relationships among these antecedents and SMEs performance in the
Pakistan context. The scope of research is limited to SMEs and is novel and significant in this
regard that it examines the mediatory role of innovation for the relationships between learning
orientation, transformation leadership, knowledge management, innovative culture, and
performance for Pakistani SMEs. This research employed quantitative research design and
collected primary data from 150 SMEs (including retailers, hotels, restaurants, and
boutiques) of Southern Punjab region. Area sampling technique was used wherein areas were
selected randomly. Respondents were top managers/owners of SMEs. This research concludes
that innovation does play a mediatory role. It contributes and strengthens transformational
leadership theory, resource-based theory, theory of the growth of firms, and dynamic
capabilities perspective. The study also contributes by providing practical implications and
suggestions to the policy makers and managers of SMEs. It suggests that managers must
develop an innovative culture to promote innovation and attain high performance. Further,
effective knowledge management guarantees innovation and superior performance of the
organization. Regarding, learning orientation, it suggests that information must be obtained
from and communicated to all the employees for fostering innovation and high performance.
Finally, the transformational leadership style must be used by leaders for enhancing the
creativity of employees and improving SME performance.
Hina Zafar, Khawaja Khalid Mehmood. (2019) Innovation as a mediator between Innovative Culture, Transformational Leadership, Knowledge Management, Learning Orientation, and Performance, Journal of Independent Studies and Research-Management, Social Sciences and Economics, Volume-17, Issue-1.
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