Innovative change management in SMEs: beyond continuous improvement

With increasing market pressure and fragmentation Small to Medium Sized Enterprises (SMEs) must move beyond the change philosophy of Continuous Improvement (CI) and develop a culture of innovation. To find out if SMEs could go beyond CI to achieve effective business innovation as a change management philosophy, a literature survey and a research survey on 15 SMEs was conducted to provide additional relevant information. The main research findings were: the SMEs exhibited a range of Continuous Improvement and innovation characteristics – some had adopted a culture of Continuous Improvement, while others had not; the SMEs which had adopted a culture of Continuous Improvement found that it could provide a solid foundation on which to build a culture of effective business innovation; and these SMEs were found to have embraced all the different components of innovation, as measured, more readily than those SMEs which did not have a culture of Continuous Improvement.

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