Innovation Strategy and Sustainable Competitive Advantage in Asian SMEs: The Mediating Role of Knowledge Management
DOI:
https://doi.org/10.53555/jaes.v21i3.73Keywords:
Asia, Dynamic Capabilities, Innovation Strategy, Knowledge Management, Sustainable Competitive AdvantageAbstract
Small and medium-sized enterprises (SMEs) are essential to economic growth and innovation-driven expansion, but many of them find it difficult to stay competitive in quickly evolving markets. Knowledge management (KM) and innovation strategy (IS) are becoming more and more important to SMEs in Asia's emerging economies as industrial transformation, digitalization, and global integration pick up speed. Achieving Sustainable Competitive Advantage (SCA) in unstable and resource-constrained environments requires these two strategic facets. This study integrates knowledge from the resource-based and dynamic capabilities perspectives to investigate the mediating role of knowledge management (KM) in the relationship between IS and SCA among Asian SMEs. A quantitative, cross-sectional survey was conducted among 500 Indian SMEs representing manufacturing, services, information technology, and retail sectors. Data were analyzed using descriptive and correlational techniques within the mediation framework proposed by Baron and Kenny. The results revealed strong positive relationships among IS, KM, and SCA (r = 0.63, 0.68, and 0.56, respectively), indicating that KM strengthens the transformation of innovation into sustainable performance outcomes. The study concludes that embedding KM practices within innovation frameworks enables SMEs to convert creativity into enduring competitiveness, offering valuable implications for policymakers and business leaders across Asia’s dynamic SME ecosystem.
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Copyright (c) 2025 Dr Suby Baby, Dr Ashwini Sonawane, Avirup Mukherjee, Dr Ashwin Sathe, V.L. Nuntluanga, Dr. Sayak Gupta (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
