The show must go on: The role of managers in promoting innovation among Armenian SMEs

The COVID-19 pandemic highlighted the importance of firm innovativeness as a means of surviving and succeeding during periods of extreme uncertainty. This paper examines the role of managerial capabilities as a driver of innovation under uncertainty in small and medium-sized enterprises (SMEs). In particular, we analyze how the propensity to innovate under uncertainty varies according to managers’ seniority, educational background, and functional area. Our analysis draws on data from the GLOBE-2020 survey, which includes 213 responses from managers of Armenian SMEs. The results indicate that managers in strategic and support positions demonstrate a higher tendency to pursue innovation under conditions of external turbulence, whereas educational background and seniority do not significantly affect this relationship. This study addresses a gap in the literature by examining the role of managerial characteristics in driving innovation during a crisis within an under-researched developing country context, using Armenia as a case study. The findings underscore the importance of strategic orientation for fostering an innovative firm mindset, as well as the role of entrepreneurial education and the joint efforts of lower-, middle-, and upper-level management in promoting innovation.