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Abstract

Objective: By means of a literature review, this study attempts to methodically investigate and pinpoint the major elements impacting employee innovative behavior in small and medium businesses. It aims to create a thorough framework that will aid in upcoming scholarly research and useful interventions in small and medium enterprises (SMEs).
Research Gap: Even with the growing importance of employee innovative behavior (EIB) in SMEs, there is still a dearth of comprehensive and contextualized knowledge about the variables affecting this kind of behavior, especially in developing nations. Furthermore, there is little theoretical integration in this area between organizational context, HRM, and leadership.
Design/Methodology/Approach: A Systematic Literature Review (SLR) was conducted using the Scopus database and Google Scholar, covering studies from 2012 to 2022. The PRISMA guidelines were followed to ensure rigorous selection and analysis of relevant literature. One limitation is the focus on only two databases, which may exclude other relevant sources.
The Main Findings: The review divided the relevant factors into four major categories: supervisor feedback, contextual organizational factors, human resource management practices, and leadership. The contribution of each element to the advancement of EIB in SMEs was investigated. A conceptual framework was created to show these connections.
Theoretical / Practical Implications of the Findings: The findings offer theoretical insights into how various organizational elements contribute to EIB and provide a basis for future empirical research. Practically, the framework can help SME leaders and HR practitioners design supportive environments that enhance innovation at the employee level.
Originality/Value: This study is one of the first to provide a rigorous synthesis of the literature on EIB in SMEs spanning ten years, integrating disparate findings into a cohesive framework. By connecting theoretical and practical viewpoints, it offers fresh insights, particularly when considering developing economies.