Organisational internal factors and the innovativeness in SMEs in Gauteng, South Africa

Abstract

This research study investigated the relationship between organisational internal factors and the SMEs’ innovativeness. The theoretical background to the study was adopted and grounded on the theory of corporate entrepreneurship. The study focused on SMEs’ owners and managers with firms operating in Gauteng, South Africa. The organisational internal factors that were investigated are management support, work discretion, rewards and reinforcement, time availability, and organisational boundaries. The study took a quantitative approach, implementing existing instruments and analysed a sample of 272 owner-managers. Multiple linear regression analysis was used as a core statistical technique to analyse the primary data and found a significant and positive relationship between management support to innovative ideas and the SMEs’ innovativeness. The results presented a significant and positive relationship between management support to execute innovative ideas and the SMEs’ innovativeness. The study highlighted a significant and positive relationship between time availability to handle the workload and the SMEs’ innovativeness. The study further highlighted a significant and positive relationship between time availability constraints on the job and the SMEs’ innovativeness. The study also found a positive but not significant relationship between the organisational antecedent of rewards/reinforcement and SMEs’ innovativeness. The study contributes to the research theory of corporate entrepreneurship by recognising the importance and influence of the organisational internal factors in the context of advancing the SMEs’ innovativeness in Gauteng. The study provides government, academic practitioners, and the SMEs owners with insights of organisational internal factors’ policies that can be implemented to facilitate and encourage employees’ innovativeness. The study is relevant to the SMEs’ owners who seek to remain entrepreneurial, competitive and contribute to economic growth.