The field of research study is Swedish SMEs that belong to plastic industry. In the time of globalization and high competition on the global market, the issues of innovation implementation and processes that can increase effectiveness of innovative activities are often discussed. The issue is essentially important for small and medium businesses, which due to their size and specifications are more flexible and can easily implement innovations. Due to the fact, that Swedish market is filled with small and medium enterprises and innovative activities are among the most current and attractive for discussion, the research on the matter of innovation is seen as important contribution and necessary study for the modern market. The study focuses on importance of communicative processes between managers and employees on the matter of innovation and innovative activities. The general research question focuses on studying whether managers and employees can influence innovations and innovative activities through communication. The research focuses on studying Swedish SMEs, on the case of plastic industry. SMEs in Sweden are well known for innovative activities, however, the research attempts to discover whether such activities are effective and whether communication between managers and employees “makes or breaks innovative ecosystem” (Estrin, 2009). The motivation behind this research is to find how communicative activities in Swedish SMEs influence innovative processes and find whether managers and employees can influence effectively innovations through communication for the benefit of the organization.