Achieving Superior Organizational Performance in Nano, Micro Small and Medium-scale Enterprises through Innovativeness in a Crises-oriented Environment: A Conceptual Paper

Abstract

Nano, Micro, Small, and Medium Enterprises (NMSMEs) have a pivotal global role in promoting economic development. However, their performance is significantly influenced by inadequate innovations, and challenges in managing external factors. The study was entrenched in contingency theory, which forms the theoretical underpinning for the study's conceptual model. This conceptual model portrays the interplay between innovativeness and superior organizational performance, with the crises-oriented environment serving as a moderating variable. Extensive literature review, indicated that different forms of innovativeness are positively related to firm performance in varying degrees and the crises-oriented environment positively moderates the link between innovativeness and superior firm performance. However, when the crises environment involves weaponized conflict, fierceness and risk of harm to people, it may positively moderate the link between innovativeness and superior firm performance. Conceptually, propositions were formulated and directions for future studies were suggested.