Review of Innovation and Competitiveness (Jan 2021)

A Study of the Impact of Managerial Innovation on SME Performance in Africa: The Case of Cameroon

  • Ben Boubakary,
  • Doumagay Donatienne Moskolaï,
  • Gladys Che Njang

DOI
https://doi.org/10.32728/ric.2021.71/1
Journal volume & issue
Vol. 7, no. 1
pp. 5 – 32

Abstract

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Purpose. Managerial innovation, if it constitutes a real lever for transformation and performance of companies in developed countries, in Africa, only a tiny part of SME managers make it a priority. At the same time, most African economies continue to be at the forefront of the adoption of global technological innovations. Given the fact that managerial innovation has proven itself in the Western context, and that the context of Sub-Saharan Africa is still unclear, it is important to develop management methods in this context by adapting them to new ones economic models, new objectives, new processes in order to see its impact on improving the productivity and performance of SMEs. Design/Methodology/Approach. A survey instrument based on the questionnaire was used to collect quantitative data to explain the performance of SMEs through the adoption of managerial innovation. For data analysis, multiple linear regression analysis was used. Findings and implications. The findings indicate that, managerial innovation, through its two main components, "change in management practices" and "change in organizational structure", make it possible to increase market share, production efficiency, the bottom line and, in turn, improve the overall performance of the business. Overall, the results of the study show that the fit model is of good quality and can be used to explain the theory. Limitations. The results of this study may not be generalisable to all African SMEs because they are based only on a sub-Saharan African country and the sample size therefore remains small. Originality. The contribution of this article is manifold: it supports the theories of contingency and resource dependence that organizations are adaptive systems that introduce changes to function effectively and improve their performance. Second, it allows SME managers to optimize the chances of sustainability for their businesses, because managerial innovation allows them to: differentiate themselves from their competitors by inventing new offers. Finally, it allows SME managers to no longer confine themselves to the technological aspect of innovation (products, processes) whose lifespan is constantly shortened. Studies of this nature can lead to stimulating managerial innovation in emerging and developing countries, by developing horizontal or networked organizational structures and no longer vertical and pyramidal structures which no longer meet current requirements.

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