Technology, Innovation and Performance Perspectives of Small to Medium Enterprises in the Manufacturing Sector of Zimbabwe
- March 6, 2019
- Posted by: RSIS
- Category: Business Management
International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue II, February 2019 | ISSN 2454–6186
Dr. Faitira Manuere, Nelia Eta Marima, Taurai Manyadze
Department of Entrepreneurship and Business Management, Chinhoyi University of Technology, Zimbabwe
Abstract:-The purpose of this study was to investigate the effect of innovation (technological, product and process) on the performance of small to medium enterprises in the manufacturing sector of Zimbabwe. The concept of innovation was quantified in terms of three variables, such as technological innovation, product innovation and process innovation. The survey design was used in this study. Therefore, a sample of 20 SMES in the greater Harare were chosen using the purposive sampling method. Only those SMEs that have been in operation for more than five years were chosen to participate in this study. The questionnaire approach was used to collect primary data which was subsequently analysed using the ANOVA and Pearson’s correlation matrix. The results of the study showed that there is a positive relationship between innovation (technological, product and process) and the performance of SMEs in the manufacturing sector of Zimbabwe.
Keywords: Technology, product innovation, electronics sector, process innovation and Small to Medium Enterprises.
I. BACKGROUND OF THE STUDY
Aqarwal and Ashwani (2008) argue that Small to Medium Enterprises (SMEs) constitute more than 80% of business enterprises globally. All economic and industrial development being registered in most of the countries today is supported by SMEs. According to Sharper (2002) and Aranoff et al (2010) SMEs are used by different countries to empower the citizens economically and to create the needed employment. SMEs are the tools for new product development, positive investment and export initiatives (Aranoff et al, 2010). Hatega (2007) points out that SMEs are the major firms in Sub-Saharan Africa and they employ the majority of the population in most African countries. SMEs are used to fight poverty, hunger and diseases in most African countries (Benzing and Chu, 2012). Kauffmann (2006) posits that SMEs provide the needed goods and services and are an important source of income and employment in most African countries.
