Examining the Impact of Innovation types on Ivorian Small and Medium-sized Enterprises (SMEs) Performance and Competitiveness

Abstract

Researchers, entrepreneurs, and governments all agree that Small and Medium-sized Enterprises (SMEs) play an important role in the world's economic development. This study sought to examine the effect of innovation on SMEs' competitiveness and performance in Cote d’Ivoire. Data for the study was obtained from 250 SMEs operating in Cote d’Ivoire through a structured questionnaire. The PLS-SEM was the main analytical tool used to analyse the research findings via SmartPLS 3 and SPSS 22. Findings from this study revealed that marketing innovation, product innovation, organisational and process innovations are the innovation dimensions that contribute to SMEs' performance and competitiveness in Cote d’Ivoire. Marketing innovation contributes more significantly to SMEs' performance; followed by product innovation; organizational innovation; and process innovation. Additionally, the study found a significant and positive relationship between competitive advantage and SMEs' performance. The study thus concluded that to remain competitive and profitable, SMEs operating in developing countries must embrace innovation and constantly seek ways to be innovative remain relevant in the industry.