The Effects of Market Innovation on the Performance of Small and Medium Size Enterprises in Buea, Cameroon

This study examined the effect of effects of innovation on the performance of SMEs in Buea. The specific objectives were; to determine the effect of product innovation, process innovation and market innovation on performance. A cross-sectional survey research design was adopted as an appropriate study design with a sample of 500 employees in SMEs in Buea was selected through stratified random sampling and a random sampling technique. The quantitative methods of data collection was used in this work were a self-administered questionnaire composed of closed ended, and likert scale questions were used to collect data from the respondents. Data obtained through a structured questionnaire were analysed using descriptive statistics and the Ordinary Least Square Regression Techniques with the help of Statistical Package for Social Sciences (SPSS) software. The findings showed that marketing innovation have a positive and significant effect on the performance of SMEs in Buea. The study concluded that innovation has a significant and positive effect on the performance of SMEs in Buea. The study therefore recommends that SMEs should invest in training programs to enhance their capabilities and are encouraged to adopt best practices in operational efficiency through targeted workshops and training sessions and should prioritize innovative marketing strategies such as digital marketing and social media engagement.

Market Innovation and Performance

1. Ayyagari, M., Beck, T., Demirgüç-Kunt, A. (2011). Small and Medium Enterprises across the Globe: A New Database. World Bank Policy Research Working Paper. [Google Scholar] [Crossref]

2. African Development Bank. (2019). Challenges Facing Small and Medium Enterprises in Africa. [Google Scholar] [Crossref]

3. African Development Bank. (2020). Infrastructure Development in Africa: Challenges and Opportunities. [Google Scholar] [Crossref]

4. Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120. [Google Scholar] [Crossref]

5. Cameroon Business Forum. (2022). Promoting Innovation in Cameroonian SMEs: Opportunities and Challenges. [Google Scholar] [Crossref]

6. International Telecommunication Union (ITU). (2021). Digital Technology Adoption in Cameroon. [Google Scholar] [Crossref]

7. Chesbrough, H. (2003). Open Innovation: The New Imperative for Creating and Profiting from Technology. Harvard Business Press. [Google Scholar] [Crossref]

8. Chesbrough, H., Bogers, M. (2014). Expanding the Science and Practice of Open Innovation. In New Frontiers in Open Innovation (pp. 1-9). Oxford University Press. [Google Scholar] [Crossref]

9. Cooper, R. G., Kleinschmidt, E. J. (1987). An Investigation into the New Product Process: Steps, Deficiencies, and Impact. Journal of Product Innovation Management, 4(2), 116-135. [Google Scholar] [Crossref]

10. Damanpour, F., Aravind, D. (2012). Organizational Structure and Innovation Revisited: From Organic to Ambidextrous Structures. International Journal of Organizational Analysis, 20(4), 368-387. [Google Scholar] [Crossref]

11. Damanpour, F., Gopalakrishnan, S. (2001). Theories of Organizational Change and Innovation Processes: Theoretical Perspectives. In Handbook of Organizational Change. [Google Scholar] [Crossref]

12. Drucker, P.F. (1985). Innovation and Entrepreneurship. Harper Row. [Google Scholar] [Crossref]

13. Greenhalgh, T., Robert, G., Macfarlane, F., Bate, P., Kyriakidou, O. (2004). Diffusion of Innovations in Health Service Organizations: A Systematic Literature Review. Milbank Quarterly, 82(4), 581-629. [Google Scholar] [Crossref]

14. Kaplan, R.S., Norton, D.P. (1992). The Balanced Scorecard—Measures That Drive Performance. Harvard Business Review. [Google Scholar] [Crossref]

15. Klein, J., Hagedoorn, J. (2015). The impact of innovation on company performance—A systematic review and meta-analysis. Research Policy. [Google Scholar] [Crossref]

16. Kotler, P., Keller, K.L. (2016). Marketing Management. Pearson. Ministry of Small and Medium-Sized Enterprises. (2021). Infrastructure Challenges for SMEs. [Google Scholar] [Crossref]

17. Lombe, O.,Tabi, A.J.,Fossung, M.F. (2024) The Deployment of structural Manufacturing Strategy Decisions to Achieve Successful Operational Performance of Food Processing Companies in Cameroon. University of Buea. International Journal of research publication and review. [Google Scholar] [Crossref]

18. Ministry of Agriculture. (2021). Agricultural Innovation Report. [Google Scholar] [Crossref]

19. National Institute of Statistics. (2021). Report on SME Operational Efficiency. [Google Scholar] [Crossref]

20. Neely, A., Gregory, M., Platts, K. (2005). Performance Measurement System Design: A Literature Review and Research Agenda. International Journal of Operations Production Management, 25(12), 1228-1263. [Google Scholar] [Crossref]

21. Ndiaye, M., Bayo, A. (2019). Innovation in SMEs in Cameroon: Challenges and Opportunities. African Journal of Business Management. [Google Scholar] [Crossref]

22. Ngwenya, T. (2020). Frugal Innovation: A Pathway for SMEs in Sub-Saharan Africa. African Journal of Business Management, 14(6), 198-207. [Google Scholar] [Crossref]

23. Nkuembe, M., Nguendo-Yongsi, P., Njiwa, J. (2020). The Role of Innovation in Enhancing Competitiveness of Small and Medium Enterprises in Cameroon. International Journal of Business Management Research, 10(2), 1-12. [Google Scholar] [Crossref]

24. OECD/Eurostat (2005). Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data. OECD Publishing. [Google Scholar] [Crossref]

25. OECD. (2019). Innovation Policy Outlook 2019: Cameroon. OECD Publishing. [Google Scholar] [Crossref]

26. Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press. [Google Scholar] [Crossref]

27. Priem, R. L., Butler, J. E. (2001). Is the Resource-Based "View" a Useful Perspective for Strategic Management Research? Academy of Management Review, 26(1), 22-40. [Google Scholar] [Crossref]

28. Rogers, E. M. (2003). Diffusion of Innovations. Free Press. [Google Scholar] [Crossref]

29. Richard, P.J., et al. (2009). Measuring organizational performance: Towards methodological best practice. Journal of Management. [Google Scholar] [Crossref]

30. Richard, P. J., Devinney, T. M., Yip, G. S., Johnson, G. (2009). Measuring Organizational Performance: Towards Methodological Best Practice. Journal of Management, 35(3), 718-804. [Google Scholar] [Crossref]

31. Roper, S., et al. (2008). The impact of innovation on SME performance in the UK. Small Business Economics. [Google Scholar] [Crossref]

32. Schumpeter, J. A. (1934). The Theory of Economic Development. Harvard University Press. [Google Scholar] [Crossref]

33. Tidd, J., Bessant, J. (2014). Managing Innovation: Integrating Technological, Market and Organizational Change. Wiley. [Google Scholar] [Crossref]

34. Trott, P. (2017). Innovation Management and New Product Development. Pearson. [Google Scholar] [Crossref]

35. Venkatraman, N., Ramanujan, V. (1986). Measurement of Business Performance in Strategy Research: A Comparison of Approaches. Academy of Management Review, 11(4), 801-814. [Google Scholar] [Crossref]

36. Womack, J.P., Jones, D.T., Roos, D. (1990). The Machine That Changed the World. Free Press. [Google Scholar] [Crossref]

37. World Bank. (2020). Financing Small and Medium Enterprises in Cameroon. [Google Scholar] [Crossref]

38. World Bank. (2021). Cameroon Economic Update: Financing Constraints for Small and Medium Enterprises. World Bank Publications. [Google Scholar] [Crossref]

• Determinants of Road Accident Frequency: The Role of Adas, Weather, Road Conditions, and Driver Factors
• Village Institutional Capacity in Realising Economic Development towards a Superior and Self-Reliant Village
• Pre-Service Teachers’ Reflections on Child Development through Eco-Theological Project-Based Learning
• Beyond the Prototype: An AI-Enabled Framework for Engineering Innovation and Startup Readiness
• AGROVENT: Solar-Powered Temperature-Responsive Ventilation System for Poultry Farm Management