Innovation and small and medium enterprises’ performance in Cameroon

Abstract

PurposeThis article attempts to explain performance through the development of innovations within small and medium enterprises (SMEs). Specifically, the authors analyse the determinants of innovation and assess the role of technological and non-technological innovations in performance.Design/methodology/approachBased on a sample of 508 Cameroonian SMEs, the PSM (propensity score matching) technique was used to reduce the selection bias inherent in this type of analysis.FindingsThe results show that technological innovation does not influence significantly the performance of SMEs, whereas non-technological innovation positively influences it. The combination of these two types of innovation leads to better performance than even accentuated development of only one type.Practical implicationsTo improve the performance of SMEs, it is necessary to adopt a comprehensive innovation policy that combines non-technological and technological innovations. In addition, it is important to intensify informations and communication technologies (ICT) promotion policies that contribute to the adoption of innovations within enterprises.Originality/valueThis paper contributes to the literature by showing the role of technological and non-technological innovations in explaining the performance of SMEs. Moreover, unlike the existing work in sub-Saharan Africa, which is limited to testing the innovation–performance relationship, this study also determines the productivity gain generated by innovative firms compared to non-innovative ones.