Do top management teams’ expectations and support drive management innovation in small and medium-sized enterprises?

Abstract

This paper examines the influences of top management teams (TMTs) on the adoption of management innovation (MI) at the employee level in small and medium-sized enterprises (SMEs). By conceptualising TMT influences as composed of the two dimensions of perceived TMT expectations and TMT support, we examine how they may influence MI in SMEs, both directly and indirectly, through the mediation of employee knowledge sharing (EKS). We argue that TMT expectations generate intangible cultural resources that provide the foundation for employees to internalise MI values and norms and that TMT support offers tangible resources to help employees implement MI. We further argue that perceived TMT expectations and support influence SME MI indirectly by encouraging and enabling EKS. Empirical data from China support our conceptual model. The paper advances our knowledge of the roles of TMT and employees as two key internal change agents in driving the adoption of MI in SMEs.