THE KNOWLEDGE-INNOVATION PATHWAY: HOW ORGANISATIONAL CULTURE, STRUCTURE, AND TECHNOLOGY DRIVE PROCESS IMPROVEMENT AND PRODUCT INNOVATION

Aim. This study investigates the interplay between process improvement (PRI), organisational innovation (OIN), knowledge sharing (KWS), and product innovation (PIN) in small commercial enterprises, framed within the Resource-Based View (RBV) paradigm. Method. Given the relationship of the variables, Structural equation modeling (SEM) was the most appropriate technique employed to analyse the relationships among these constructs, focusing on mediation effects and pathways influencing innovation outcomes. The results show a direct and positively significant relationship between PRI, OIN, KWS, and PIN, underscoring their synergistic roles in driving innovation. Whereas Knowledge sharing (KWS) mediates the influence of organisational factors (cultural norms, organisational structure and use of advanced technological infrastructure) on product innovation (PIN). The process improvement (PRI) acts as an intermediary between knowledge transfer, organisational change, and PIN. Organisational Innovation (OIN) directly enhances both product innovation (PIN) and knowledge-sharing practices, fostering a culture of continuous improvement. Results. The findings validate RBV’s relevance in small enterprises, highlighting how intangible resources (e.g., knowledge, processes) drive competitive advantage through innovation. The dual mediation roles of KWS and PRI clarify mechanisms linking organisational capabilities to innovation outcomes. Conclusion. Small enterprises should prioritise the cultivation of a knowledgesharing culture and robust technological infrastructure to amplify innovation, aligning process improvement initiatives with organisational change strategies to bridge gaps between knowledge and product development.