The emergence of innovation capabilities supporting technological shifts among SMEs: A mediated moderated model

The adoption of innovations to support technological transitions is widely recognized as a key strategic lever for maintaining competitiveness, but while many studies have explored the general determinants of innovation, less is known about the factors that foster the development of innovation capabilities (ICs)—those competencies that enable a systematic approach to innovation. This knowledge gap is particularly evident in the context of small and medium-sized enterprises (SMEs), despite the significant role they play in many national economies, so understanding how SMEs can systematically pursue innovation is therefore crucial for the competitiveness of these economies. To address this gap, this study proposes and tests an interpretative model aimed at predicting the emergence of ICs within SMEs. The model examines how commonly studied determinants of innovation are moderated by two specific antecedents: organizational tools and procedures. Using partial least squares structural equation modeling (PLS-SEM), the study analyzes a sample of innovation-oriented SMEs, with the results showing that economic objectives, available resources, networking, and corporate culture influence SMEs’ decisions to invest in organizational tools and procedures that enhance ICs. In fact, organizational tools play a central mediating role, while excessive procedural formalization may hinder flexibility and limit innovation outcomes. This research contributes to clarifying the antecedents of ICs and offers theoretical, practical, and policy insights that are applicable beyond the specific context investigated.