Individual characteristics and innovation performance in SMEs: Moderating role of physiological capital

Aim: This research aimed to identify the individual characteristics and innovation performance in Pakistani SMEs, as well moderating role of psychological capital. Specifically, present used organizational behavior theory social exchange theory.Methodology: To analyze data, 310 SME managers Pakistan filled out an online survey. Structural Equation Modeling (SEM) results indicate that emotional investment favors adaptability.Findings: Additionally, demonstrated capital relationship between change readiness affective commitment, creativity, trust SMEs.Implications/Novel Contribution: Another significant contribution is study’s use theory. Managers can improve staff retention by instituting policies build a sense belonging, respect for management, pride one’s work. adds what was previously known about simulation platform Pakistan’s SMEs.