Organisational Culture, Innovation and Performance in SMEs: A Systematic Literature Review of Emerging Research Trends

Abstract

In the contemporary business environment, characterised by rapid technological change and intense competition, innovation has emerged as a critical determinant of organisational success and long-term sustainability. Small and medium-sized enterprises (SMEs), in particular, rely on innovation to enhance competitiveness and respond effectively to dynamic market conditions. Organisational culture plays a fundamental role in shaping firms’ internal environments and influencing their innovation capabilities and overall performance. This study presents a systematic literature review examining the relationship between organisational culture, innovation, and SME performance. A structured search of the Scopus database was conducted in March 2026, focusing on English-language peer-reviewed journal articles published between 2015 and 2026. Following the screening process, 38 studies were included and analysed using thematic synthesis. The findings indicate that organisational cultures characterised by collaboration, adaptability, knowledge sharing, and employee empowerment are more likely to foster product, process, marketing, and organisational innovation, ultimately contributing to improved organisational performance. However, the review also suggests that the relationship between organisational culture and performance is influenced by contextual and organisational factors. The study contributes to the literature by synthesising current evidence, identifying key research gaps, and proposing directions for future research. The review is limited to English-language journal articles indexed in Scopus, which may have excluded relevant studies published in other databases or languages.