Determinants of Innovation Capability in Latin American MSMEs

The Role of Organizational Learning, Intellectual Capital, Knowledge Management, and Dynamic Capabilities

Authors

DOI:

https://doi.org/10.29105/vtga12.4-1355

Keywords:

intellectual capital, Dynamic capabilities, innovatoin, SMEs, Latin America

Abstract

This study examines key factors influencing innovation capability in Latin American micro, small, and medium-sized enterprises (MSMEs), focusing on organizational learning, intellectual capital, knowledge management, and dynamic capabilities. Using an exploratory-descriptive empirical-documentary approach, it analyzes 29 SCOPUS-indexed articles (2020–2026) covering business contexts in Mexico, Colombia, Chile, Peru, Ecuador, Argentina, and Brazil. Data were processed through thematic coding, comparative synthesis, and bibliometric analysis with VOSviewer.

Findings reveal that dynamic capabilities and knowledge management are essential mediators between intangible resources and innovation, while organizational learning serves as the cognitive foundation of innovation. Intellectual capital plays an indirect but significant role by facilitating knowledge transfer and application. Regional differences are noted: countries with more mature innovation ecosystems exhibit stronger links among knowledge management, collaboration, and innovation outcomes.

The study concludes that innovation in Latin American MSMEs relies more on the dynamic integration of organizational capabilities than on tangible resources. It offers a comprehensive view of innovation drivers in the region and presents theoretical, practical, and policy insights to support business competitiveness and sustainability.

Downloads

Download data is not yet available.

Author Biographies

Dr. , Universidad Autonoma de Nuevo Leon

Dr. Jesús Gerardo Cruz Álvarez is a Full-Time Professor and Researcher at the School of Accounting and Business Administration at the Universidad Autónoma de Nuevo León (UANL), Mexico. He holds a Ph.D. in Management from UANL, and his research focuses on business models, productivity, competitiveness, business ethics, lean manufacturing, Industry 5.0, operations strategy, and sustainability. He has published in peer-reviewed national and international academic journals and actively participates in research networks focused on the financial performance of organizations from an operations management perspective. His work aims to strengthen the link between empirical evidence and strategic decision-making in Latin American business contexts. Dr. Cruz Álvarez serves as a thesis advisor at the undergraduate, master's, and doctoral levels and has been recognized as a distinguished professor by both UANL and SEP-PRODEP. In the corporate sector, he has held positions as operations director in plants and business units, with full profit and loss (P&L) responsibility across various enterprises in the Americas.

Dr., Universidad Autónoma de Nuevo León

Dr. Paula Villalpando Cadena is a Full-Time Professor and Coordinator of the Ph.D. Program in Accounting at the Faculty of Accounting and Business Administration, Autonomous University of Nuevo León (UANL), Mexico. She holds a Ph.D. in International Business, and her research focuses on fiscal sustainability, public management, and corporate social responsibility. She has published in national and international indexed journals, including the Journal of Law and Sustainable Development, Vinculategia, and InnovaCiencias de Negocios. Her academic work promotes the analysis of public policies and their impact on economic sustainability and financial transparency in Latin American contexts.

Dr. , Universidad Autonoma de Queretaro

..

References

Amini., Niazi, A., & Daryaei, A. A. (2021). Determinants of innovation capability in developing countries: The role of knowledge and intellectual capital. Journal of Small Business and Enterprise Development, 28(3), 412–428. https://doi.org/10.1007/s10961-021-09874-1

Argyris, C., & Schön, D. A. (1996). Organizational learning II: Theory, method, and practice. Addison-Wesley.

Banco Interamericano de Desarrollo. (2022). Informe de sostenibilidad 2022. https://publications.iadb.org/es/banco-interamericano-de-desarrollo-informe-de-sostenibilidad-2022

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.

Castillo-Vergara, M., Álvarez-Marín, A., & García-Pérez-de-Lema, D. (2025). Dynamic capabilities and innovation performance in Latin American SMEs: The mediating role of digital transformation. Journal of Business Research, 168, 113–127. https://doi.org/10.1108/REGE-01-2025-0018

Comisión Económica para América Latina y el Caribe. (2024). Estudio económico de América Latina y el Caribe, 2024: La trampa de bajo crecimiento, el cambio climático y la dinámica laboral (LC/PUB.2024/10-P). CEPAL. https://www.cepal.org/es/publicaciones/80595

Cruz-Álvarez, J. G. (2018). Modelo de Competitividad Global para la Industria Automotriz . Vinculatégica EFAN, 3(2), 30–40. Recuperado a partir de https://vinculategica.uanl.mx/index.php/v/article/view/1328

Cruz-Alvarez, J. G., Perez Moreno, O., & Santoyo, J. (2025). Impacto Económico de la Innovación Tecnológica en la Industria Cerámica en México: Alternativas para Elevar la Competitividad del Sector. Vinculatégica EFAN, 11(4), 243–259. https://doi.org/10.29105/vtga11.4-1194

Cuevas-Vargas, H., Parga-Montoya, N., & Lozano-García, R. (2023). Determinants of openness activities in innovative SMEs: The role of knowledge management and ICT use. Journal of Innovation & Knowledge, 8(4), Article 100432. https://doi.org/10.1016/j.jik.2023.100432

Escobar-Castillo, A., Velandia-Pacheco, G., & Navarro-Torres, J. (2023). Factors that impact the innovation capability in Colombian SMEs. Procedia Computer Science, 224, 490–494. https://doi.org/10.1016/j.procs.2023.09.070

Felzensztein, C., Ciravegna, L., & Robson, M. (2021). Networks, innovation, and internationalization in Latin American SMEs. Journal of Small Business Management, 59(6), 1129–1150. https://doi.org/10.1007/s10843-021-00303-w

Fiernaningsih, N., Widayani, A., Herijanto, P., Himmah, M., & Utamaningsih, A. (2024). Enhancing SME performance in East Java through competency development, leadership, entrepreneurial intent, and resilience. Problems and Perspectives in Management, 22(3), 504–516. https://doi.org/10.21511/ppm.22(3).2024.38

Gatica-Neira, M., Bravo-Sánchez, C., & León-Duarte, L. (2024). Organizational learning and innovation in SMEs: Evidence from Chile and Argentina. Management Decision, 62(1), 55–73. https://doi.org/10.1177/215824402412492

Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(S2), 109–122. https://doi.org/10.1002/smj.4250171110

Hernández-Perlines, F., Moreno-Gómez, J., & Castillo-Vergara, M. (2025). Dynamic capabilities and innovation performance in family firms: Evidence from Latin America. Technological Forecasting and Social Change, 197, 122–141. https://doi.org/10.1016/j.jik.2025.100667

Hernández-Ramírez, M., Mora-Esquivel, R., & Leiva, J. (2021). Entrepreneurial orientation and innovative performance in SMEs: The mediating effect of organizational learning. Tec Empresarial, 15(3), 38–62. https://doi.org/10.18046/j.estger.2022.162.4519

Lawson, B., & Samson, D. (2001). Developing innovation capability in organisations: A dynamic capabilities approach. International Journal of Innovation Management, 5(3), 377–400. https://doi.org/10.1142/S1363919601000427

Morales, J., & Robalino-López, A. (2025). Intellectual capital, knowledge management, and innovation in SMEs from Ecuador and Peru. European Journal of Innovation Management, 28(2), 215–233. https://doi.org/10.18046/j.estger.2022.162.4519

Nonaka, I., & Takeuchi, H. (1995). The knowledge-creating company: How Japanese companies create the dynamics of innovation. Oxford University Press. https://doi.org/10.1093/oso/9780195092691.001.0001

Nunes Pozzo, A., González, L., & Herrera, P. (2023). Organizational learning and product innovation in small firms in emerging economies. Journal of Entrepreneurship in Emerging Economies, 15(4), 789–806. https://doi.org/10.1016/j.procs.2023.09.072

Organisation for Economic Co-operation and Development. (2023). OECD competition trends 2023. OECD Publishing. https://doi.org/10.1787/bcd8f8f8-en

Reina-Gutiérrez, M., & Pla-Barber, J. (2026). Resilient innovation and dynamic learning in Latin American family SMEs. Journal of Family Business Strategy, 17(1), 100–125. https://doi.org/10.1007/s11365-025-01148-8

Saunila, I. (2020). Innovation capability in SMEs: A systematic review of the literature. Journal of Innovation & Knowledge, 5(4), 260–265. https://doi.org/10.1016/j.jik.2019.11.002

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z

Yeo, H. Y., & Ong, C. H. (2024). Industry 4.0 competencies and sustainable manufacturing: The moderating role of dynamic capabilities. SAGE Open, 14(3), 1–12. https://doi.org/10.1177/21582440241271263

Downloads

Published

2026-07-31

How to Cite

Cruz-Álvarez, J. G., Villalpando-Cadena, P., & Sotomayor-Gallardo, M. (2026). Determinants of Innovation Capability in Latin American MSMEs: The Role of Organizational Learning, Intellectual Capital, Knowledge Management, and Dynamic Capabilities. Vinculategica Efan, 12(4), 14–32. https://doi.org/10.29105/vtga12.4-1355

Issue

Vol. 12 No. 4 (2026): VinculaTégica EFAN 12(4) Julio - Agosto 2026

Section

Papers

License

Copyright (c) 2026 jesus gerardo cruz alvarez, Paula Villalpando Cadena, Mario Sotomayor Gallardo

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors who publish in the VinculaTégica EFAN journal agree to the following Copyright Notice:
 

a). Authors keep copyright and give the journal the right of the first publication of the work under a Creative Commons attribution license. This license allows others to share the work as long as original authorship and initial publication in this journal is acknowledged.

b). Authors may make other independent and additional contractual agreements for the non-exclusive distribution of the version of the article published in this journal (e.g., include it in an institutional repository or publish it in a book) as long as they clearly indicate that the work was published for the first time in this journal.

c). Authors are allowed to self-archive their work in institutional repositories or on their own website before and during the submission process, as this may encourage productive exchanges and increase early and overall citation of the published work.