Investigating the effect of strategic innovation on innovative performance with the role of the moderator of the business environment (Case study: small and medium companies in Kermanshah)

Nowadays, as the competitive environment of businesses increases, they try to continue their activities in this dynamic and turbulent environment. One of the important factors for competition in the small and medium sized enterprises is innovation. Innovation also reduces costs and increases business productivity. As a consequence, this study was conducted to investigate the effect of strategic innovation on innovative performance with the role of environmental moderator in small and medium sized enterprises located in industrial towns in Kermanshah province. The method used in this research is a descriptive- Survey method. The statistical population of the study includes small and medium sized industrial companies operating in Kermanshah (N = 567) which according to the table of Krejcie and Morgan (1970) 234 companies were randomly selected as a sample. Data analysis was performed using structural equation modeling with Smart PLS software. The results show that strategic innovation is positively and significantly (0.263) related to the performance of small and medium sized enterprises and in competitive environments (0.251) with a small percentage difference compared to the dynamic environment (0.247), strategic innovation has a greater impact on innovative performance. The more competition there is, the stronger the impact of strategic innovation on innovative performance.