Cameroon: Innovations and ICT and Their Combined Performance Effects on Small, Medium, and Micro-sized Enterprises

Abstract

A firm’s performance is a result of many factors including its ability to innovate and use ICT . Investments in ICT and innovation are also seen as a driver of productivity and competitiveness, enhancing the continuity of a business. This chapter assesses these two sources of performance and examines possible synergies between different types of innovations through ICT and their effect on the performance of small, medium and micro-sized enterprises (SMMEs) . The data used is the General Census of Companies in Cameroon conducted with 93,969 companies by the National Institute of Statistics (INS). The chapter uses a multiple regression model to assess the direct effects of innovative activities and the use of ICT tools in business practices, as well as the combined effect of different types of ICT innovations on SMMEs’ performance. The statistical analysis shows that the integration of innovations and ICT is very low in Cameroonian SMMEs but that this increases systematically with company size. The econometric analysis shows that ICT helps increase SMMEs’ performance by supporting innovations. Thus, innovations accompanied by a firm’s further use of ICT have a significant influence on its performance. However, specific investments in innovations and the use of existing ICT resources lead to differentiated performance in terms of strong effective market changes, creating new markets and improving goods and services.