Business competitiveness: A predictive model of innovation and quality in Peruvian small and medium-sized enterprises

In a highly demanding business context, such as that of small and medium-sized companies, competitiveness is crucial for their market longevity, and organizational strategies focused on innovation and quality become essential elements. The objective of the study was to determine the predictive capacity of the innovative organizational approach (EOI) and quality management (QM) on business competitiveness (EC). It was developed using a quantitative, non-experimental, predictive, and cross-sectional approach, employing structural equation modeling (PLS-SEM) on a sample of 150 participants from the service sector. The results show a significant and positive relationship between the variables. The EOI had a direct impact on business competitiveness (b = 0.492) and QA (b = 0.568); similarly, QA also had a positive influence on competitiveness (b = 0.409), both of which were significant (p = 0.001). Positive predictive significance values were achieved for both variables, particularly for competitiveness (Q2 = 0.512), which contrasts with the proposed model. In conclusion, the empirical evidence indicates that both innovative organizational approaches and quality management are key predictors of MSE business competitiveness. The study in question offers a valuable and replicable model for refining business strategy in emerging economies. Its contribution is relevant for the design of organizational policies aimed at the sustainable development and competitive success of the sector.