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The Impact of Innovation on Small and Medium Enterprises Performance: Empirical Evidence from Hargeisa, Somaliland

Author

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  • Mohamed Hussein Abdilahi
  • Abdikarim Adan Hassan
  • Muhumed Mohamed Muhumed

Abstract

This study examines the impact of innovation on the performance of Small and Medium Enterprises (SMEs) in Hargeisa, Somaliland. Target population of the study was 6930 SMEs in Hargeisa; a number provided by Hargeisa Local Government, and Somaliland Ministry of Trade and Investment as the two institutions issue business licenses to the small enterprises and medium enterprises respectively. A sample of 378 SMEs has been drown from this population. The study adopted both descriptive and regression analyses to estimate the impact of innovation. Regression results of the study reveal that innovation significantly affects the performance of SMEs in Hargeisa. The study finds that the effects of product innovation, marketing innovation and organizational innovation are statistically significant among these SMEs.

Suggested Citation

  • Mohamed Hussein Abdilahi & Abdikarim Adan Hassan & Muhumed Mohamed Muhumed, 2017. "The Impact of Innovation on Small and Medium Enterprises Performance: Empirical Evidence from Hargeisa, Somaliland," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(8), pages 14-28, August.
    • Handle: RePEc:hur:ijarbs:v:7:y:2017:i:8:p:14-28
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    Citations

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    Cited by:

    1. Deborah Terdoo Alabar & Prof. Timothy T. Alabar, 2023. "Examining the Moderating Effect of Knowledge Sharing in the Relationship between Innovation Management Dimensions and Organizational Sustainability of Deposit Money Banks in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(8), pages 20-31, August.
    2. Stephen Makau Muathe & Eunice Dushime & Lucy Kavindah, 2023. "Elevating SMEs Performance through Entrepreneurial Innovation and Government Regulations in Bujumbura, Burundi," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 194-208, May.
    3. Zhiwen Li & Oswin Aganda Anaba & Zhiqiang Ma & Mingxing Li, 2021. "Ghanaian SMEs Amidst the COVID-19 Pandemic: Evaluating the Influence of Entrepreneurial Orientation," Sustainability, MDPI, vol. 13(3), pages 1-27, January.
    4. Samuel Godadaw Ayinaddis, 2023. "The effect of innovation orientation on firm performance: evidence from micro and small manufacturing firms in selected towns of Awi Zone, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-19, December.

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