Design management in SMEs: Extending the bundle of dynamic capabilities

Although the concept of design management is increasingly important for small and medium sized enterprises (SMEs) it is the focus of very few studies. The definition of design management in the literature allows it to be understood as a dynamic capability. This paper investigates this dynamic capability and analyzes its mediating role between organizational learning capability and product innovation. Structural equation modeling was used to test the research hypotheses on a SME data set from the Italian and Spanish ceramic tile industry. The results suggest that organizational learning capability enhances product innovation and that design management capability plays a significant role in determining the effects of organizational learning capability on product innovation.