Abstract
Abstract The purpose of this paper is to provide a framework to help SMEs auto service providers appreciate the critical contribution of innovations (technical and operational) to their performance. Specifically, the study examines the direct relationship between technical innovation and firm performance and the mediating role of operational innovation in the relationship. Participants of the study were drawn from the SMEs auto service provider in Kumasi, Ghana. Multiple regression analysis was performed to estimate the direct relationship and the mediating effects. In all, 180 questionnaires were used for the analysis after performing data screening. The results demonstrate that there is a statistically significant relationship between technical innovation and firm performance. Operational innovation was also found to mediate the relationship between technical innovation and firm performance. The study assumed that information regarding the operations of the participants is complete and that participants were selected based on willingness to participate. It is recommended for future researchers to explore other avenues of the subject matter to develop a standardised pattern of operations in the SMEs auto service sector.
Highlights
Previous studies on Small and Micro Enterprises (SMEs) services performance suggest a number of predictors
Concerning the mediating role of operational innovation, the results revealed that operational innovation mediated the relationship between technical innovation and firm performance (β=0.097; p
OF RESULTS Service innovation capabilities in firms are suggested by many management researchers to contribute to SMEs firm performance
Summary
Previous studies on Small and Micro Enterprises (SMEs) services performance suggest a number of predictors. Management researchers have over the years investigated and compiled the critical factors that contribute to the outcome of the firm performance SMEs service sector with innovation capabilities as the predictors (see; Sarooghi et al.,2015; Atuahene-Gima, 2005) much research has not been conducted into the automobile services industry in Ghana (Kankam-Kwarteng & Amoateng, 2016). The dimensionalities in measuring the performance of SMEs service firms have included both internal capabilities and external capabilities components of business operations (Singh et al, 2008). KankamKwarteng et al (2018) found that firm performance measurement in the SMEs auto service in Ghana can be attributed to service innovations. On technical innovation, Staropoli (1998) found that it can be improved by accommodating institutional rearrangement and coordinating frameworks
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