Structural Equation Model of the Causal Effects of Strategic Innovation Management Practices on Human Capital and Innovative Performance in Small and Medium-Sized Enterprises
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Abstract
This study aims to investigate the relationship between strategic innovation management practices, human capital, and innovation performance. It specifically examines the mediating effect of human capital on the relationship between strategic innovation management practices and innovation performance. The study employs structural equation modeling to analyze data collected from 352 respondents representing small and medium-sized enterprises (SMEs) in Phayao Province, Thailand. The findings reveal that strategic innovation management practices have a positive and significant impact on both human capital and innovation performance, both directly and indirectly. These findings contribute to the understanding of how SMEs can effectively utilize strategic innovation management practices to generate new innovations and achieve superior performance over their competitors, while simultaneously developing their human capital. The study's findings offer valuable implications for SMEs. Strategic innovation management should focus on developing employee capabilities, attitudes, and cognitive flexibility to enhance their creativity and problem-solving abilities through innovation, leading to improved organizational performance. For academics, these findings can inform further research in business administration and related fields, while entrepreneurs can apply the strategic innovation management framework presented in the study to their organization's strategic planning, thereby strengthening their organizational capabilities and fostering sustainable growth.
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