Design thinking and innovation strategy by SMEs for competitiveness: a review

Abstract

Throughout the world, small and medium-sized enterprises (SMEs) are recognized as integral components of the economic landscape. Historically focused on domestic markets, since the late 1990s, SMEs have found themselves operating within a globalized marketplace characterized by increasingly discerning customers and intense competition. This newfound global exposure presents a considerable challenge for SMEs, given that many of them possess limited resources and capabilities, often lacking the capacity to establish and sustain a structured innovation management system. In light of this backdrop, this paper embarks on a systematic literature review aimed at exploring the nexus between Design Thinking, innovation, and competitiveness within the context of SMEs. The study involved the retrieval of 308 papers published between 1998 and 2021 from ISI Web of Science – Current Contents. These papers underwent comprehensive analysis with the help of Endnote 20 and NVivo 20, encompassing both bibliometric and content-based analysis. Subsequently, a refined sample of 70 papers, directly related to the research question, was isolated following the application of the exclusion criteria. The findings of this study underscore the need for the development of an innovation framework tailored specifically to SMEs, to seamlessly integrate Design Thinking processes while maintaining alignment with overarching corporate strategy. This holistic approach to innovation management is poised to play a pivotal role in enhancing the competitive standing of SMEs in today's complex and dynamic business landscape.