The impact of innovation management on the sustainability of small and medium enterprises with the role of entrepreneurship mediation

Today, small and medium-sized enterprises play a significant role in national and regional development, contributing to the promotion of indigenous technology and supporting the activities of local entrepreneurs. Innovation has emerged as a critical factor in the business world, and the necessity of implementing innovation management is recognized for enhancing the competitiveness of enterprises in both domestic and foreign markets. Small and medium-sized enterprises, operating within domestic and foreign markets, must be equipped to adapt to these continually evolving changes. The purpose of this research, conducted in the second half of 2023, is to investigate the impact of innovation management on the sustainability of small and medium-sized enterprises. The research is quantitative, applied in nature, and employs a descriptive and analytical methodology. The statistical population comprised 537 businesses, and the sample size (calculated using Cochran’s formula) consisted of 224 research and development employees. Data collection involved the implementation of a 25-question questionnaire with a 5-point Likert scale. Results indicate that applying innovation management across all company departments in a dynamic environment generates sustainable value and a competitive advantage. Additionally, active participation in organizational entrepreneurship can activate innovation management, leading to value creation. The study investigates the impact of innovation management on the sustainability of small and medium enterprises, with entrepreneurship as a mediating factor. Hypotheses are formulated and tested using structural equation modeling, finding that innovation transfer and application positively influence sustainability when mediated through entrepreneurship. Therefore, acquiring knowledge through entrepreneurship optimizes learning and ideation. For small and medium enterprises lacking resources, this knowledge acquisition facilitates development and sustainability in a dynamic environment.