Author(s): Nagwan AlQershi, Zakaria Bin Abas, Sany Sanuri Mohd Mokhtar
The implications of strategic innovation for the performance of SMEs have attracted major interest among practitioners and academics. However, empirical studies on the relationship between strategic innovation and performance mediating structure capital have not yet been examined, and it is this significant theoretical gap which this paper will fill. The study also contributes by proposing and developing a framework underpinned by Contingency Theory. Our PLS analysis reveals that strategic innovation is significantly associated with SME performance, and that the relationship between strategic innovation and SME performance is significantly mediated by structure capital. In this dynamic business world, SME managers should invest in and fully utilize strategic innovation and structure capital to achieve a high level of performance and competitive advantage.