The influence of technologically innovative practices on the performance and growth of small and medium enterprises in Bindura

Abstract

It is commonly understood that the adoption of innovative capabilities by firms provides them with immense opportunities to transform their business practices and strategies, to strategically position themselves in the market, and enhance firm performance. Nevertheless, little attention has, thus far, been given to the empirical investigation of the impact of innovation on the firm performance of SMEs in Bindura. The principal objective of this study was to fill this void by investigating the influence of innovation on the firm performance of SMEs in Bindura. The study employs a quantitative method in data collection. Sample data from 217 SME owners/managers were collected for the final data analysis of this project. The sample data were analysed by performing using SPSS version 28. The principal findings of this study reveal that innovation has a significant impact on the performance of SMEs. In addition, the results showed that all four forms of innovation have a positive and significant influence on firm performance. Policymakers can also encourage synergy between large technological vendor companies and SMEs. The government must create a technological fund for SMEs that charges low interest rates. However, the study was conducted only in one town in Zimbabwe; future research should be carried out in other cities in Zimbabwe and other developing countries to deal with generalization issues.