Effect of innovativeness on the performance of small and medium enterprises (SMEs) in Namanve after COVID-19

Abstract

The pandemic has forced small and medium enterprises (SMEs) to adjust to a new normal, with changes in customer behavior, supply chain disruptions, and new safety regulations. The overall objective of the study was to examine the effect of innovativeness on the performance of SMEs in Namanve during Post covid-19. A sample of 233 SMEs was selected using simple random sampling. The study used structured questionnaire to collect data from the respondents. The study used a multiple linear regression to examine the effect of innovative capability, innovative strategy, and innovative culture on the performance of SMEs. The findings revealed that innovative capability had a positive and statistically significant effect on the performance of SMEs in Namanve during the post covid-19 period (B = 0.350, P-value (0.000) < 0.05). The findings from the model indicated that innovative strategy had a statistically significant positive effect on the performance of SMEs in Namanve during the post covid-19 period (B = 0.395, P-value (0.00) < 0.05). The regression findings further revealed that innovative culture did not have a significant effect on the performance of SMEs in Namanve during the post covid-19 period (P-value (0.395) > 0.05). In conclusion, the study highlights the significant role of innovativeness in enhancing the performance of SMEs in Namanve during the post covid-19 period. Specifically, both innovative capability and innovative strategy emerged as influential factors contributing to improved SME performance within this context. For recommendations, government should prioritize offering entrepreneurship training programs to SMEs in Namanve. These programs can cover innovation, market analysis, adaptability, and other relevant skills to empower operators with the tools they need to navigate challenging situations. Organize workshops, seminars, and conferences that bring together SMEs and potential collaborators. These events can serve as platforms for idea exchange, networking, and identifying potential collaboration opportunities in challenging times. The SMEs in Namanve should embrace the adoption of new technology, software, and equipment to streamline their operations in challenging times. Key words: Innovativeness, Innovative capability, Innovative strategy, Innovative culture and performance.