Service Innovation and Service Quality Effects on Marketing Performance of SMEs

Abstract

Purpose: The purpose of this paper was to examine the relationship between service innovation, service quality and marketing performance of SMEs in Ghana. Methods: Data were obtained from 164 SMEs in the Kumasi metropolis of Ghana through a structured questionnaire. Convenience sampling techniques was used to select respondents. The paths of the relationships were estimated and tested using t-values and coefficient weights. The study made use of Statistical Package for Social Science (SPSS version 21) and AMOS in conducting the analysis. Results: The study found that service innovation has significant positive influence on marketing performance of SMEs. Service quality was also found to significantly influence marketing performance of SMEs. The results also showed that relationship between service innovation and service quality was positive. Research limitations/implications– This research has several managerial implications based on the results of the descriptive estimates and the inferential results. Future research should estimate relationships between service innovation, service quality, and marketing performances in other developing economies to expand understanding of the interactive effects of service quality and service innovative on marketing performance of SMEs and support in providing more insights into how its implementation will impact on overall marketing performance. Originality: Based on the research findings the study has added to the continuous research in the area of performance of SMEs, specifically marketing performance. This paper would be significant to service innovation and service quality dimensions in the operations of SMEs.