Managerial Competencies and Innovative Work Behavior in SMEs

Abstract

ABSTRACT

This quantitative correlational study investigated the correlation between leaders’ managerial competencies and innovative work behaviors (IWB) in small and medium-sized enterprises (SMEs). The target population of the study was human resources managers in SMEs operating in the United States and Singapore. The theoretical foundation for this study was rooted in the resource-based view (RBV) and the theory of competitive advantage. The researcher utilized a non-experimental correlational research design and a purposive sampling method to collect data. The researcher used Centiment, an online survey platform, to recruit the study's participants. Centiment collected data from 126 participants (63 in the United States and 63 in Singapore). The participants completed the 5-point Likert survey of five demographic questions, 17 questions of the Innovative Work Behavior instrument, and 60 questions of the Managerial Skills Assessment Instrument (MSAI). The researcher analyzed the collected data using R Commander software to determine the correlation between the leaders' managerial competencies (independent variable) and innovative work behavior (dependent variable). The results showed a statistically significant positive relationship between the leader's managerial competencies and innovative work behavior (IWB) in SMEs, and this relationship is higher in Singapore than in the United States. This study provided empirical evidence regarding the relationship between managerial competencies and IWB in SMEs. The findings of the study indicated that leaders' managerial competencies trigger innovations in SMEs by influencing innovative work behavior in the workplace, and collective culture has more impact on the significance of this relationship than individual cultures. Owners/managers of SMEs and policymakers can benefit from the findings of this study in understanding the relationship between managerial competencies and IWB in SMEs and building strategies and programs to enhance innovation and IWB in SMEs accordingly. Future researchers in business administration who are interested in investigating leadership and innovation in SMEs can build on the results of this study.   

Keywords: small and medium enterprises (SMEs), managerial competencies, managerial skills, innovation, innovative work behavior (IWB), resource-based view (RBV), and competitive advantage.