Do training and development, internal communication and information sharing, and job design boost the innovation of SMEs?

Abstract

How can we increase the level of innovation in Small and Medium-sized Enterprises (SMEs)? Can improving internal organizational culture through Human Resource Management (HRM) methods boost the innovativeness of SMEs? These are some of the questions that currently preoccupy us. The aim of this paper is to measure the effect of three HRM strategies such as, training and development (T&D), internal communication and information sharing (C&I), and job design (JD) on SMEs innovation. To realize this study, a quantitative approach was employed, utilizing self-administered questionnaires. The data collected from 153 manufacturing SMEs that operate in Kosovo underwent hierarchical linear regression analysis to test, examine, and refine the relationship between T&D, C&I, JD, and SME innovation. The findings reveal a clear and direct relationship between each of these three practices and innovation in SMEs. The findings highlight the significance of fostering creative employees through specific HRM strategies. This study makes a substantial contribution to the current knowledge by providing insights into the intricate relationship between T&D, C&I, and JD (considered from both bundle and single perspectives) and innovation within SMEs.

Keywords

• Training and development
• internal communication
• information sharing
• job design
• SMEs innovation
• HRM strategies