Managing the external factors that determine the innovation capabilities of SMEs. A systematic literature review and keyword co-occurrence analysis

Purpose Small and medium-sized enterprises (SMEs) represent a very important part of a country’s economy and depend largely on the development of their innovation capabilities to compete in the market. This study aims to research on innovation in SMEs by classifying the external factors that influence innovation capabilities and proposing a framework to support organizational learning and innovation. Design/methodology/approach A systematic literature review was carried out, identifying external factors that, with empirical evidence, have a positive influence on innovation capabilities of SMEs. A keyword co-occurrence analysis was also conducted to facilitate the analysis of the review. Findings Thirty-two articles studying external factors according to the established criteria have been identified. The identified factors were grouped into six categories, reflecting different dimensions of the external environment’s relationship with innovation capability. A framework comprising 18 mechanisms for managing knowledge flows with external sources is also proposed. Research limitations/implications This article contributes to understanding the influence of the external environment and the organizational learning process on the development of innovation capabilities of SMEs. As a limitation, the classification and framework are conditioned by study methodology and search criteria established. Practical implications SME managers can use the proposed framework as a diagnostic and decision-making tool to identify the external knowledge flow mechanisms that, according to the relevant studies, have been linked to positive outcomes in the development of innovation capabilities. This is not a rigid framework. Flexible framework adaptation can be made to their specific context, resources and institutional environment. Originality/value This study contributes to the literature on the innovation capability of SMEs by focusing specifically on the external factors that are empirically linked to that capability. By combining a systematic literature review with a keyword co-occurrence analysis, the study provides a classification of external factors to support organizational learning in SMEs. A framework of knowledge flow mechanisms is also proposed to assist SMEs in developing their innovation capability.