IDEAS home Printed from https://ideas.repec.org/a/ids/ijesbu/v56y2025i4p508-528.html
   My bibliography  Save this article

Fostering innovation adoption for enhanced SME performance: evidence from Addis Ababa's manufacturing sector

Author

Listed:
  • Nigus Tadesse Beshe
  • Mari Jansen van Rensburg

Abstract

SMEs operating in transition economies, serving customers with limited purchasing power, demand frugal innovation to succeed in saturated markets with low-value and low-technology products. These SMEs rely on pricing strategies for survival and leverage internal resources and capabilities to enhance value or reduce costs. This study, conducted in Addis Ababa, Ethiopia's manufacturing sector, explores the link between innovation adoption and SME performance. Quantitative data from 692 respondents were analysed using structural equation modelling. Results indicate a significant correlation between innovation adoption and firm performance, attributed to human and financial resources investments and supportive organisational culture. External environmental factors had minimal impact on innovation adoption or performance. These findings provide valuable insights for policymakers and decision-makers aiming to support innovation adoption and SME performance. Findings emphasise the significance of contextual distinctions and the value of innovation studies within the unique business environment in which it operates.

Suggested Citation

  • Nigus Tadesse Beshe & Mari Jansen van Rensburg, 2025. "Fostering innovation adoption for enhanced SME performance: evidence from Addis Ababa's manufacturing sector," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 56(4), pages 508-528.
    • Handle: RePEc:ids:ijesbu:v:56:y:2025:i:4:p:508-528
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=149947
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijesbu:v:56:y:2025:i:4:p:508-528. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=74 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.