Towards Effective Innovation Strategy in Small and Medium Enterprises in African Developing Economies: The Role of Top Management Capability

Abstract

Globally, Business firms have recognized that to live and sustain competitive position in today’s rapidly changing environment, it is indispensable to efficiently innovate. Nevertheless, the strategy adopted to innovate is what creates the difference between the winners and the losers in this competitive environment. The aim of this paper is to review and develop a conceptual framework that enhances innovation strategy for SMEs firms in developing countries of Africa. Due to the current pace of liberalization and globalization of trades, SMEs in developing economies of Africa needs to effectively advance, realign and standardize their strategies for continual innovations. It is therefore essential for SMEs firms in developing countries of Africa to think and act beyond their comfort area of operations in terms their innovation strategies to enhance their competitive position. This requires SMEs top managers to develop high managerial capability that reinforce in individual employee, groups and departments rules and values to effectively utilize, execute and carryout various business processes such as innovation, service quality and customer responsiveness. The paper concludes that competent management capability is essential to fashion effective innovation strategy that would makes SMEs in developing economies of Africa to compete favorably both at local and global fronts. If empirically validated would provide significant contributions to body existing literature and serve as valuable guides to managers and policies makers.