Innovation climate and innovation performance in manufacturing small and medium enterprises in the Greater Kampala Metropolitan Area, Uganda: A developing country perspective
DOI:
https://doi.org/10.51867/AQSSR.2.4.72Keywords:
Innovation Climate, Innovation Performance, Manufacturing, Small and Medium EnterprisesAbstract
In today’s dynamic business environment, improving innovation performance is fundamental to the competitiveness and sustainability of Small and Medium-Sized Enterprises (SMEs) in manufacturing. Existing research supports the association between innovation climate and innovation performance; however, there is a limited understanding of this relationship in developing countries, such as Uganda. This study examined the influence of innovation climate on the innovation performance of manufacturing SMEs in the Greater Kampala Metropolitan Area (GKMA), Uganda, using the Componential Theory of Innovation and Creativity. This study employed a positivist paradigm and a quantitative explanatory research design to collect data from 326 SMEs in a population of 958. The data were collected through a structured self-administered questionnaire. SMEs were selected through proportionate stratified sampling, and respondents were selected purposively. Hierarchical regression was used for data analysis. Results indicate a positive, significant relationship between the innovation climate and innovation performance. This study contributes to the literature on innovation performance, specifically on internal organizational context antecedents. In practice, the findings may support owner-managers of SMEs and the Ministry of Trade, Industry, and Cooperatives in improving the implementation of existing policies and practices in innovation management in manufacturing firms. This study therefore recommends that SME owners and managers empower employees and grant them autonomy to think innovatively for the firm without fear of failure to improve innovation performance.
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