The predicting role of knowledge-based dynamic capabilities on innovation performance of small enterprises in Tanzania: mediating effect of innovation culture

Abstract

PurposeThe main purpose of this study is to investigate the mediating role of innovation culture in the relationship between knowledge-based dynamic capabilities and innovation performance of small enterprises in Tanzania.Design/methodology/approachThis study is cross-sectional and data collected through structured questionnaire were analyzed using PLS-SEM.FindingsThe findings revealed that dimensions of knowledge-based dynamic capabilities significantly influence innovation culture and innovation culture significantly influence the innovation performance. Finally, innovation culture is a significant mediator of the relationship.Practical implicationsThe study contributes to the understanding that owners of small businesses must create conducive environments for the development of an innovation culture by improving knowledge acquisition, generation and combination for better innovation performance outcomes.Originality/valueStudies done on innovation culture are limited especially in the context of developing countries such as Tanzania where adoption of innovative ideas is considered a slow process due to various factors such as poor management of knowledge resources. Therefore, this study contributes to the body of knowledge by establishing a link between knowledge-based dynamic capabilities and innovation performance through a mediation of innovation culture.