Abstract

STAMPER, Sakhumzi  and  CHINYAMURINDI, Willie T.. Innovation and knowledge management capabilities as determinants of financial performance in technology-based small businesses in South Africa. SAJIM (Online) [online]. 2025, vol.27, n.1, pp.1-9. ISSN 1560-683X.  https://doi.org/10.4102/sajim.v27i1.2016.

BACKGROUND: Calls continue to grow for a deeper understanding of the capabilities that drive the performance of small businesses. This is especially important in emerging nations where the promotion of digitalisation is a key policy and developmental focus OBJECTIVES: This study investigates the determinants of small business performance by examining the role of innovation and knowledge management capabilities within the South African context. The focus is on technology-based small businesses METHOD: A structured questionnaire was administered to a sample of 261 respondents drawn from four key provinces in South Africa. All participating firms operated primarily as technology-based enterprises. Hypotheses were tested using inferential statistical techniques RESULTS: The results reveal a significant and positive relationship between innovation capability and knowledge management capability. Additionally, knowledge management capability was found to mediate the relationship between innovation capability and financial performance CONCLUSION: These findings highlight the critical role of innovation and knowledge management capabilities in enhancing small business financial performance, particularly in digitally driven environments CONTRIBUTION: The study offers insights for academics and practitioners seeking to leverage innovation and knowledge practices to improve competitiveness and support digital transformation in small firms

Keywords : innovation management; knowledge management; financial performance; technology; small business.

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