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Rewards and Innovation Performance in Manufacturing Small and Medium Enterprises (SMEs)

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  • Gustave Mungeni Kankisingi

    (Department of Entrepreneurial Studies and Management, Durban University of Technology, Durban 4000, South Africa)

  • Shepherd Dhliwayo

    (Department of Business Management, College of Business and Economics, University of Johannesburg, Johannesburg 2006, South Africa)

Abstract

The study investigated types of rewards SMEs offered to intrapreneurs and how these (rewards) contribute to innovation performance (IP). A questionnaire was administered to a sample of 300 SME owner-managers from the industrial spatial distribution areas of Kwa-Zulu Natal province in South Africa. Results show that besides a regular salary offered by 99.5% of the SMEs, fewer than 37.1% of them paid other forms of rewards. The empirical findings show that rewards had an influence on innovation performance. From the 17 rewards awarded to intrapreneurs by SMEs, only “promotion within organisation” and “monetary bonus rewards” had a positive and significant influence on innovation performance. Four other rewards had a significant but negative influence on IP. Rewards are an important tool to encourage crowdsourcing intrapreneurial contribution to IP. Rewards should therefore be strategically selected given the limited financial resources in SMEs. The importance of this study is its focus on SMEs, which are characterised by limited information on the effect of rewards on innovation performance, as well as the efficiency driven economic setting, normally not characterised by “innovation performance”. The study also shows how IP can be crowdsourced through appropriate rewards.

Suggested Citation

  • Gustave Mungeni Kankisingi & Shepherd Dhliwayo, 2022. "Rewards and Innovation Performance in Manufacturing Small and Medium Enterprises (SMEs)," Sustainability, MDPI, vol. 14(3), pages 1-19, February.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:3:p:1737-:d:741024
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    References listed on IDEAS

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    1. Zulfiqar Ali & Hongyi Sun & Murad Ali, 2017. "The Impact of Managerial and Adaptive Capabilities to Stimulate Organizational Innovation in SMEs: A Complementary PLS–SEM Approach," Sustainability, MDPI, vol. 9(12), pages 1-23, November.
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    Cited by:

    1. Galvão Meirinhos & António Cardoso & Maria Neves & Rui Silva & Reiville Rêgo, 2023. "Leadership Styles, Motivation, Communication and Reward Systems in Business Performance," JRFM, MDPI, vol. 16(2), pages 1-30, January.
    2. Feny Widyawati & Imas Soemaryani & Wa Ode Zusnita Muizu, 2023. "The Effect of Social Capital and Organizational Health on Competitive Advantages of Culinary and Craft SMEs in Samarinda City," Sustainability, MDPI, vol. 15(10), pages 1-37, May.
    3. Ted Y. T. Suen & Simon K. S. Cheung & Fu Lee Wang & John Y. K. Hui, 2022. "Effects of Intrinsic and Extrinsic Motivational Factors on Employee Participation in Internal Crowdsourcing Initiatives in China," Sustainability, MDPI, vol. 14(14), pages 1-23, July.

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