Empowering Kenyan SMEs: Leveraging Business Intelligence, Design Thinking, and AI for Sustainable Innovation: A Narrative Review
Ikisiri
The role of design in fostering innovation and creating a competitive advantage has garnered increasing interest among management scholars over time. Early perspectives on this topic were rooted in product and architectural design—spanning buildings, furniture, and clothing—where scholars argued that "thinking like a designer" could help address complex, "wicked problems". They proposed that organizations could maximize the benefits of this mindset by embedding design thinking into their structures and cultures. Despite these early theoretical insights, much of the initial empirical research on design approaches in organizations concentrated on the team level, outlining specific tools that enable teams to "think like designers." This research identified a structured problem-solving approach incorporating design tools such as rapid prototyping, user observation, idea visualization, and brainstorming. Over time, the application of these "designedly tools" across various organizational challenges led to the emergence of "design thinking" as a distinct discipline. While existing research on design thinking has largely focused on its practical applications in solving business problems. It has paid comparatively less attention to the broader advantages of integrating design as a core element of organizational culture. Design can foster innovation and generate a competitive advantage for organizations and has, over time, attracted increasing interest among management scholars. Building on frameworks of product and architectural design (e.g., the design of buildings, furniture, clothes), early proponents of this mind-set suggested that “thinking like a designer” to solve “wicked problems” could be best leveraged in organizations by “infusing” design into the fabrics and cultures of these organizations. Despite this initial theorizing, most early empirical studies of design approaches in organizations focused on the team level and defined the specific tools that these teams could use to “think like designers.” This research identified a systematic approach to problem-solving that employs design tools such as rapid prototyping, user observation, visualization of ideas, and brainstorming. Over time, the use of such “designedly tools” to solve a wide variety of organizational problems evolved into a new discipline called “design thinking” Research on design thinking, thus, has traditionally emphasized the practical implications of using design tools to solve business problems but has largely overlooked the potential benefits of incorporating design as a key component of organizational culture.
Upakuaji
Marejeleo
Abbey, E., & Adu-Danso, E. (2023). What factors hamper innovation amongst SMEs in Kenya? Innovation and Development, 13(2), 411-440.
Alliance for Financial Inclusion (2024). Gender inclusive finance comes under the spotlight in Skopje. https://www.afi-global.org/news/gender-inclusive-finance-comes-under-the-spotlight-in-skopje/
Anjaningrum, W. D., Azizah, N., & Suryadi, N. (2024). Spurring SMEs’ performance through business intelligence, organizational and network learning, customer value anticipation, and innovation-Empirical evidence of the creative economy sector in East Java, Indonesia. Heliyon, 10(7).
Azevedo, M. C. D., Schlosser, F., & McPhee, D. (2021). Building organizational innovation through HRM, employee voice and engagement. Personnel Review, 50(2), 751-769.
Babatunde, A. T. (2024). Driving Innovation through AI and Machine Learning: Exploring the Opportunities of Integrating Artificial Intelligence in Business Intelligence. Academic Journal of Global Who is Who in Academia, 5(1), 1-14.
Badghish, S., & Soomro, Y. A. (2024). Artificial intelligence adoption by SMEs to achieve sustainable business performance: application of technology–organization–environment framework. Sustainability, 16(5), 1864.
Badmus, O., Rajput, S. A., Arogundade, J. B., & Williams, M. (2024). AI-driven business analytics and decision making. World Journal of Advanced Research and Reviews, 24(1), 616-633.
Barcellos-Paula, L., De la Vega, I., & Gil-Lafuente, A. M. (2021). The Quintuple Helix of Innovation Model and the SDGs: Latin-American Countries’ Case and Its Forgotten Effects. Mathematics, 9(4), 416. https://doi.org/10.3390/math9040416
Basit, S. A., Gharleghi, B., Batool, K., Hassan, S. S., Jahanshahi, A. A., & Kliem, M. E. (2024). Review of enablers and barriers of sustainable business practices in SMEs. Journal of Economy and Technology, 2, 79-94.
Basile, V. (2021). The triple layered business model canvas in smart agriculture: the case of Evja startup. Piccola Impresa/Small Business, (2).
Beckman, S. L., & Barry, M. (2007). Innovation as a learning process: Embedding design thinking. California Management Review, 50(1), 25-56.
Ben Mahmoud‐Jouini, S., Midler, C., & Silberzahn, P. (2016). Contributions of design thinking to project management in an innovation context. Project Management Journal, 47(2), 144-156.
Bigdeli, E., Motadel, M., Toloie Eshlaghy, A., & Radfar, R. (2020). A dynamic model of effective factors on Agile business-IT alignment. Kybernetes, 49(10), 2521-2546.
Carayannis, E.G., Campbell, D.F.J. (2019). Conclusion: Smart Quintuple Helix Innovation Systems. In: Smart Quintuple Helix Innovation Systems. SpringerBriefs in Business. Springer, Cham. https://doi.org/10.1007/978-3-030-01517-6_6
CBK (2024). Market Perceptions Survey Report. https://www.centralbank.go.ke/2024/02/09/market-perceptions-survey-report-of-january-2024/
CGAP (2025). Women's Financial Inclusion. https://www.cgap.org/topics/women-financial-inclusion
Chatwani, N. (2019). Organisational agility. Springer International Publishing, Cham, doi, 10, 978-3.
Costa, J., & Matias, J. C. (2020). Open Innovation 4.0 as an enhancer of sustainable innovation ecosystems. Sustainability, 12(19), 8112.
Cubric, M., & Li, F. (2024). Bridging the ‘Concept–Product’ gap in new product development: Emerging insights from the application of artificial intelligence in FinTech SMEs. Technovation, 134, 103017.
Curley, M., & Salmelin, B. (2018). Open Innovation 2.0. Springer.
Dragičević, N., Vladova, G., & Ullrich, A. (2023). Design thinking capabilities in the digital world: A bibliometric analysis of emerging trends. In Frontiers in education (Vol. 7, p. 1012478). Frontiers Media SA.
Elias G. Carayannis & David F. J. Campbell & Evangelos Grigoroudis, (2022). "Helix Trilogy: the Triple, Quadruple, and Quintuple Innovation Helices from a Theory, Policy, and Practice Set of Perspectives," Journal of the Knowledge Economy, Springer; Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2272-2301.
Elsbach, K. D., & Stigliani, I. (2018). Design thinking and organizational culture: A review and framework for future research. Journal of Management, 44(6), 2274-2306.
Gad-Elrab, A. A. (2021). Modern business intelligence: Big data analytics and artificial intelligence for creating the data-driven value. In E-Business-Higher Education and Intelligence Applications. IntechOpen.
Gupta, P. (2024). Synergizing Success: Harnessing AI-Infused Business Intelligence to Propel Exponential Business Growth. In Data-Driven Business Intelligence Systems for Socio-Technical Organizations (pp. 105-127). IGI Global.
Hassani, A., & Blais, C. (2024). Competitive intelligence as a creative tool for the innovation process: an exploratory study in SMEs. International Journal of Entrepreneurship and Innovation Management, 28(5-6), 343-364.
He, J., & Ortiz, J. (2021). Sustainable business modeling: The need for innovative design thinking. Journal of cleaner production, 298, 126751.
Heilig, T., & Scheer, I. (2023). Decision intelligence: Transform your team and organization with AI-Driven decision-making. John Wiley & Sons.
Islam, A., Wahab, S. A., & Latiff, A. A. (2022). Annexing a smart sustainable business growth model for small and medium enterprises (SMEs). World Journal of Entrepreneurship, Management and Sustainable Development, 18(2), 1-24.
Iyelolu, T. V., Agu, E. E., Idemudia, C., & Ijomah, T. I. (2024). Driving SME innovation with AI solutions: overcoming adoption barriers and future growth opportunities. International Journal of Science and Technology Research Archive, 7(1), 036-054.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of cleaner production, 135, 1474-1486.
Joyce, A., Paquin, R. L., & Pigneur, Y. (2015). The triple layered business model canvas. In A tool to design more sustainable business models. ARTEM Organizational Creativity International Conference. Nancy, France.
Kabra, G. and Mukerjee, H.S. (2025), "Analyzing barriers to design thinking adoption within organizations: a DEMATEL approach", International Journal of Productivity and Performance Management, Vol. 74 No. 3, pp. 915-939. https://doi.org/10.1108/IJPPM-12-2023-0670
Kankaew, K., Nakpathom, P., Chnitphattana, A., Pitchayadejanant, K., & Kunnapapdeelert, S. (Eds.). (2024). Applying Business Intelligence and Innovation to Entrepreneurship. IGI Global.
KIE (2024). Incubating, Financing and Developing SMEs Countrywide. https://kenyaindustrialestates.go.ke/
Kiveu, M. N., Namusonge, M., & Muathe, S. (2019). Effect of innovation on firm competitiveness: the case of manufacturing SMEs in Nairobi County, Kenya. International Journal of Business Innovation and Research, 18(3), 307-327.
Kurek, J., Brandli, L. L., Leite Frandoloso, M. A., Lange Salvia, A., & Mazutti, J. (2023). Sustainable business models innovation and design thinking: A bibliometric analysis and systematic review of literature. Sustainability, 15(2), 988.
Kurtmollaiev, S., Fjuk, A., Pedersen, P. E., Clatworthy, S., & Kvale, K. (2018). Organizational transformation through service design: The institutional logics perspective. Journal of Service Research, 21(1), 59-74.
Lateef, M., & Keikhosrokiani, P. (2023). Predicting Critical success factors of business intelligence implementation for improving SMEs’ performances: a case study of Lagos State, Nigeria. Journal of the Knowledge Economy, 14(3), 2081-2106.
Lee, J. H., Ostwald, M. J., & Gu, N. (2020). Design thinking: creativity, collaboration and culture (Vol. 12). Cham: Springer.
Magistretti, S., Ardito, L., & Messeni Petruzzelli, A. (2021). Framing the microfoundations of design thinking as a dynamic capability for innovation: Reconciling theory and practice. Journal of Product Innovation Management, 38(6), 645-667.
Manzke, J. (2022). Design Thinking for Innovation Within Manufacturing SMEs: A Multiple Case Study (Doctoral dissertation, Walden University).
Masroor, N., & Asim, M. (2019). SMEs in the contemporary era of global competition. Procedia Computer Science, 158, 632-641.
Maurer, F. (2021). Business intelligence and innovation: a digital innovation hub as intermediate for service interaction and system innovation for small and medium-sized enterprises. In Smart and Sustainable Collaborative Networks 4.0: 22nd IFIP WG 5.5 Working Conference on Virtual Enterprises, PRO-VE 2021, Saint-Étienne, France, November 22–24, 2021, Proceedings 22 (pp. 449-459). Springer International Publishing.
Menon, R. B., Avadhani, V. D., Menon, P. B., & Das, D. (2023). Development of an entrepreneurship model using the design thinking approach and emotional intelligence for sustainable wellness among the young generation. Cogent Business & Management, 10(3), 2271243.
Mesa, D., Renda, G., Gorkin III, R., Kuys, B., & Cook, S. M. (2022). Implementing a design thinking approach to de-risk the digitalisation of manufacturing SMEs. Sustainability, 14(21), 14358.
Midgley, R., & Arya, S. (2022). The Triple Layered Business Model Canvas: A Tool for Sustainability. International Journal of Management Research and Social Science (IJMRSS), 9(1), 8-12.
Mohammadian, H. D. (2022). Mapping the Future Global SMEs Growth via Hybrid SMEs/SME 5.0/Tomorrow's SMEs Concept through the 5th Wave, i-Sustainability Plus and DCT Theories. In Management and information technology in the digital Era (Vol. 29, pp. 173-206). Emerald Publishing Limited.
Muto, V., Luongo, S., Percuoco, M., & Tani, M. (2024). Artificial Intelligence and the Great Reset: Impacts and Perspectives for Italian SMEs Business Model Innovation. Systems, 12(9), 330.
Naradda G. S. K., Ekanayake, E. M. S., Abeyrathne, G. A. K. N. J., Prasanna, R. P. I. R., Jayasundara, J. M. S. B., & Rajapakshe, P. S. K. (2020). A review of global challenges and survival strategies of small and medium enterprises (SMEs). Economies, 8(4), 79.
Nishant, R., Kennedy, M., & Corbett, J. (2020). Artificial intelligence for sustainability: Challenges, opportunities, and a research agenda. International journal of information management, 53, 102104.
Osano, H. M. (2019). Global expansion of SMEs: role of global market strategy for Kenyan SMEs. Journal of Innovation and Entrepreneurship, 8(1), 13.
Park, Y., El Sawy, O. A., & Fiss, P. (2017). The role of business intelligence and communication technologies in organizational agility: a configurational approach. Journal of the association for information systems, 18(9), 1.
Park, Y., El Sawy, O. A., & Hong, T. (2020). Digital transformation to real-time enterprise to Sustain competitive advantage in the digitized world: the role of business intelligence and communication systems. Korea Business Review, 24(0), 105-130.
Pham, C. T. A., Magistretti, S., & Dell’Era, C. (2022). The role of design thinking in Big Data innovations. Innovation, 24(2), 290-314.
Prud'homme van Reine, P. (2017). The culture of design thinking for innovation. Journal of Innovation Management, 5(2), 56-80.
Qu, C., & Kim, E. (2025). Artificial-Intelligence-Enabled Innovation Ecosystems: A Novel Triple-Layer Framework for Micro, Small, and Medium-Sized Enterprises in the Chinese Apparel-Manufacturing Industry. Sustainability, 17(11), 5019.
Ramakrishnan, T., Khuntia, J., Kathuria, A., & Saldanha, T. J. (2020). An Integrated Model of Business Intelligence & Analytics Capabilities and Organizational Performance. Communications of the Association for Information Systems, 46, pp-pp. https://doi.org/10.17705/1CAIS.04631
Ramdani, B., Raja, S., & Kayumova, M. (2022). Digital innovation in SMEs: a systematic review, synthesis and research agenda. Information Technology for Development, 28(1), 56-80.
Roberts, J. P., Fisher, T. R., Trowbridge, M. J., & Bent, C. (2016). A design thinking framework for healthcare management and innovation. In Healthcare (Vol. 4, No. 1, pp. 11-14). Elsevier.
Rondi, E., De Massis, A., & Kotlar, J. (2019). Unlocking innovation potential: A typology of family business innovation postures and the critical role of the family system. Journal of family business strategy, 10(4), 100236.
Roux, M., Chowdhury, S., Kumar Dey, P., Vann Yaroson, E., Pereira, V., & Abadie, A. (2023). Small and medium-sized enterprises as technology innovation intermediaries in sustainable business ecosystem: interplay between AI adoption, low carbon management and resilience. Annals of Operations Research, 1-50.
Ruijer, E., Dingelstad, J., & Meijer, A. (2023). Studying complex systems through design interventions probing open government data ecosystems in the Netherlands. Public Management Review, 25(1), 129-149.
Sayed, R. (2023). Strategic integration of business analytics in innovation management: Framework for sustainable growth. Futurity of Social Sciences, 1(1), 51-66.
Schmitt, M. (2023). Automated machine learning: AI-driven decision making in business analytics. Intelligent Systems with Applications, 18, 200188.
Shneiderman, B. (2020). Human-centered Artificial Intelligence: Three fresh ideas. AIS Transactions on Human-Computer Interaction, 12(3), 109-124.
Sreenivasan, A., & Suresh, M. (2024). Design thinking and artificial intelligence: A systematic literature review exploring synergies. International Journal of Innovation Studies.
Steltzer, H. (2024). Leveraging AI and Business Intelligence for Sustainable Growth in SMEs: Addressing Ethical and Security Challenges.
Tantiyaswasdikul, K. (2023). Design Thinking for Innovation in Sustainable Built Environments and the Integration of an Inclusive Foresight and Design Thinking Framework. International Journal of Sustainable Development & Planning, 18(3).
Thite, M. (2022). Digital human resource development: where are we? Where should we go and how do we go there? Human Resource Development International, 25(1), 87-103.
Wakiaga, P. (2025). SMES Critical in Attaining Manufacturing Dream. https://kam.co.ke/smes-critical-in-attaining-manufacturing-dream/#:~:text=A%20recent%20National%20Economic%20Survey,3%20percent%20of%20the%20GDP
Zaverzhenets, M., & Łobacz, K. (2021). Digitalising and visualising innovation process: comparative analysis of digital tools supporting innovation process in SMEs. Procedia Computer Science, 192, 3805-3814.
Copyright (c) 2025 Ann Gaceri Kaaria, PhD

This work is licensed under a Creative Commons Attribution 4.0 International License.