Democratic Organizational Culture for SMEs Innovation Transformation and Corporate Entrepreneurship

The contribution of the Small and Medium Size Enterprises (SMEs) in every economy is undeniably significant. Still, their existence relies on their leadership's ability to respond to the continuous challenges utilizing best their limited resources. This paper introduces a Democratic Leadership Change Integration Model (DLCIM) that can be used globally to support and institutionalize SMEs' innovation by maximizing their human intellectual capital's effectiveness democratically. Knowledge democratization is a crucial stage in knowledge generation. Its benefits encourage both the employees and the organization to create innovative products and services under ethical management values and principles. The proposed framework helps organizations and SMEs achieve a knowledgebased democratic company-employee relationship. It encapsulates the integration of The Company Democracy Model as the tool and base for innovation, the ADKAR model for change management, and the Self-Determination Theory as a leadership principle.