Volume 3, Issue 4, December 2018, Page: 106-112
Innovative Performance of Small and Medium Scale Enterprises
Joseph Kwadwo Tuffour, Research and Consultancy Centre, University of Professional Studies, Accra, Ghana
Martina Awonate Agbaam, Department of Banking and Finance, University of Professional Studies, Accra, Ghana
Felicia Lynda Edzeame, Department of Banking and Finance, University of Professional Studies, Accra, Ghana
Ellen Efua Ntiamoah Aye-Darko, Department of Banking and Finance, University of Professional Studies, Accra, Ghana
Kingsley Darko, Department of Banking and Finance, University of Professional Studies, Accra, Ghana
Received: Oct. 16, 2018;       Accepted: Nov. 22, 2018;       Published: Dec. 26, 2018
DOI: 10.11648/j.jbed.20180304.11      View  36      Downloads  23
Abstract
A driving force for competition in the present business environment is innovation. In a rapidly changing world, the need for innovation has increased. In many ways, innovation has become an important tool in the management of organisations, ensuring they have real opportunities to advance. Whiles only few innovative performance studies of Small and Medium Scale Enterprises (SMEs) in Ghana have been conducted, they evince low levels of innovation among surveyed SMEs. Thus, a study that focuses on innovative characteristics of SMEs in the Ghanaian context is key. The aim of the study is to examine factors constraining innovative performance of small and medium enterprises in Adentan Municipality of Ghana. The survey method of data collection was used to sample 400 respondents selected to obtain primary data for the study. Descriptive statistics were applied to the quantitative data. The study revealed that uncertainty, and financial and technological related constraints are the major factors constraining the innovative performance of SMEs in the Adentan Municipality. The study also pointed to financial and technical support as possible ways to curb the constraining factors of innovative performance among SMEs. At the same time, SMEs need to promote workers’ access to technology to improve innovation processes and support growth by increasing investment in Information Communication Technology (ICT). Deliberate mechanisms to facilitate access to technical and financial support for SMEs by government is recommended.
Keywords
Innovative Performance, Small and Medium Scale Enterprises, Adentan Municipality
To cite this article
Joseph Kwadwo Tuffour, Martina Awonate Agbaam, Felicia Lynda Edzeame, Ellen Efua Ntiamoah Aye-Darko, Kingsley Darko, Innovative Performance of Small and Medium Scale Enterprises, Journal of Business and Economic Development. Vol. 3, No. 4, 2018, pp. 106-112. doi: 10.11648/j.jbed.20180304.11
Copyright
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Reference
[1]
Aryeetey, E. & Ahene, A. A. (2005). Changing regulatory environment for small-medium size enterprises and their performance in Ghana. No 30594, Centre on Regulation and Competition (CRC) Working papers, University of Manchester, Institute for Development Policy and Management
[2]
Oludele, A. A., & Emilie, C. K. (2012). Regulation, awareness, compliance and SME performance in Cameroon's manufacturing and retail sectors. International Journal of Social Economics, 39 (12), 933-950.
[3]
Tuffour, J. K., Banor, C. & Akuffo, E. (2015). Do leadership styles matter in microfinance performance? Empirical evidence from Ghana, Journal of Business Research, (9), 1-15.
[4]
OECD (2005). Oslo manual: Guidelines for collecting & interpreting innovation, 3, p. 22.
[5]
Kocher, P. Y., Kaudela-Baum, S., & Wolf, P. (2011). Enhancing organizational innovation capability through systemic action research: A case of Swiss SME in the food industry. Systematic Practical Action Research, 24 (1), 17-44.
[6]
Miettinen, R., Samra-Frederics, D., & Yanow, D. (2009). Re-turn to practice: An introductory essay. Organization Studies. 30 (12), 1309-1329.
[7]
Tsoukas, H., & Vladimirou, E. (2002). What is organizational knowledge? Journal of Management Studies. 18 (22), 973-993.
[8]
Tuffour, J. K., Akuffo, D., Kofi, A. A., Frimpong, P. A. & Sasu, T. (2018). Adoption of mobile commerce and service in Adentan municipality of Ghana: An examination of factors influencing small enterprises, International Business Research, 11 (11), 109-118.
[9]
Castells, M. (2010). The rise of the network society, (2nd ed.). Vol. I – III, Wiley-Blackwell, Oxford.
[10]
Huang, Y. H. & Tsai, M. T. (2011). A study of service innovation in small and medium enterprises: Evidence from e-commerce systems, Research Journal of International Studies, 18 (5), 778-789.
[11]
Gomes, J. F., Yaron, A., & Zhang, L. (2006). Asset pricing implications of firms’ financing constraints, Review of Financial Studies, 19 (4), 1321-1356.
[12]
Tuffour, J. K., & Boateng, J. A. (2017). Is working capital management Important? Empirical evidence from manufacturing companies in Ghana, Review of Innovation and Competitiveness, 3 (1), 5-20.
[13]
Tuffour, J. K., Atswei, A. C. N., Agyei, A. & Barnor, C. (2014). The effect of financial leverage on profitability of manufacturing companies listed on the Ghana Stock Exchange, Journal of Business Research, 8th edition, (8), 56-65.
[14]
Keizer, J., Dijkstra, L., & Halman, J. (2002). Explaining innovative efforts of SMEs: An exploratory survey among SMEs in the mechanical and electrical engineering sector in The Netherlands. Technovation, 22 (1), 1-13.
[15]
Tahi, T. (2011). Development of small and medium enterprises in a developing country, the Indonesian case, Journal of Enterprising Communities: People and Places in the Global Economy. 5 (1), 68-82.
[16]
Silva, M., Leitao, J., & Raposo, M. (2007). What Determines the Entrepreneurial Innovative Capability of Portuguese Industrial Firms? University of Beira Interior, Tampere Hall, Finland.
[17]
Lim, E., & Shyamala, N. (2007). Obstacles to innovation: Evidence from Malaysian manufacturing. Retrieved from: // http:mpra.ub.unimuenchene.de/MPRA, Paper No. 18077.
[18]
Mohen, P., & Roller, L. H. (2005). Complementarities in innovation policy, European Economic Review, 49 (6), 1431-1450.
[19]
Baldwin, J., & Lin, Z. (2002). Impediments to advanced technology adoption for Canadian manufacturers, Research Policy, 31 (1), 1-18.
[20]
Fan, Q., Li, K., Zeng, D. Z., Dong, Y. & Peng, R. (2009). Innovation for development and the role of government: A perspective from the East Asia and Pacific Region. Washington, DC: World Bank.
[21]
Almubaraki, H. & Aruna, M. (2013). Technology innovations for SMEs growth: A perception for the emerging economies. Journal of Economies and Sustainable Development, 4 (3), 156-162.
[22]
Bozic, L., & Rajh, E. (2016). The factors constraining innovation performance of SMEs in Croatia, Economic Research-Ekonomska Istrazivanaja, 29 (1), 314-324.
[23]
Bozic, L. & Radas, S. (2012). Overcoming failure: Abandonments and delays of innovation projects in SMEs. Journal of Industry and Innovation, 19 (8), 649-669.
[24]
Tetteh, E, K. & Essegbey, O. G. (2014). Firm level innovation: The case of Ghanaian firms. European Journal of Business and Innovation Research, 2 (2), 1-18.
[25]
Rauch, A., Wiklund, J., Lumpkin, G., & Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship: Theory & Practice, 33 (3), 761-787.
[26]
Avlonitis, G. J., & Salavou, H. E. (2007). Entrepreneurial orientation of SMEs, product innovativeness and performance. Journal of Business Research, 60 (5), 566- 575.
[27]
Kollmann, T., & Stöckmann, C. (2012). Filling the entrepreneurial orientation–performance gap: The mediating effects of exploratory and exploitative innovations. Entrepreneurship Theory and Practice, ET&P, 1001-1026.
[28]
Wiklund, J., & Shepherd, D. (2005). Entrepreneurial orientation and small business performance: A configurational approach. Journal of Business Venturing, 20 (1), 71-91.
[29]
Li, H., Zhang, Y., & Chan, T. (2005). Entrepreneurial strategy making and performance in China's new technology ventures – the contingency effect of environments and firm competences. The Journal of High Technology Management Research, 16 (1), 37-57.
[30]
Rogers, M. (2003). Networks, firm size and innovation. Small Business Economics, 22 (2), 141-153.
[31]
Askar, P., & Kocak-Usleul, Y. (2009). Diffusion of computers in school: Encyclopedia of distance learning, (2nd ed.), Turkey: IGI Global.
[32]
Christensen, C. M. (1997). The innovator’s dilemma: When new technologies cause great firms to fail, Boston, MA: Harvard Business Press.
[33]
Ebru, B. B., Fulya, T. & Sinan, A. (2014). A research on determining innovative factors for SMEs: International Strategic Management Conference, Rome, Italy, 1, 193-202.
[34]
Hasliza A. H., Noor, H. A., Ramayah, T., Haniruzila, H., Seyedeh, K. T. & Marini, N. M. (2015). Towards an innovation culture: Enhancing innovative performance of Malaysian SMEs, Academic Journal of Interdisciplinary Studies, 4 (2), 85-94.
[35]
Mbizi, R., Hove, L., Thondhlana, A. & Kakava, N. (2013). Innovation in SMEs: A review of its role to organisational performance and SMEs operations sustainability, Interdisciplinary Journal of Contemporary Research in Business, 4 (11), 370-387.
[36]
Gunawan, T. (2015). The determinants of innovative performance: A study of SMEs in a developing country, Eindhoven: Technische Universiteit Eindhoven.
[37]
Ismail, K., Omar, W. Z. W., Soehod, K., Senin, A. A. & Akhtar, S. (2014). Role of innovation in SMEs performance: A case of Malaysian SMEs, Mathematical Methods in Engineering and Economics, 145-149.
[38]
Rose, S., Spinks, N. & Canhoto, A. I. (2015). Management research: Applying the principles. London, Routledge.
Browse journals by subject