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

Article

Beshe, N.T. and Jansen van Rensburg, M. 2025. Fostering innovation adoption for enhanced SME performance: evidence from Addis Ababa's manufacturing sector. International Journal of Entrepreneurship and Small Business. 56 (4), pp. 508-528. https://doi.org/10.1504/IJESB.2025.149947

Publication dates
Type	Article
Title	Fostering innovation adoption for enhanced SME performance: evidence from Addis Ababa's manufacturing sector
Authors	Beshe, N.T. and Jansen van Rensburg, M.
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.
Keywords	innovation adoption; firm resources; business environment dynamics; SMEs' performance; market orientation
Sustainable Development Goals	10 Reduced inequalities
Middlesex University Theme	Sustainability
Publisher	Inderscience Enterprises Ltd
Journal	International Journal of Entrepreneurship and Small Business
ISSN	1476-1297
Electronic	1741-8054
Online	19 Nov 2025
Print	2025
Publication process dates
Submitted	05 Jan 2024
Accepted	04 Apr 2024
Deposited	16 Dec 2025
Output status	Published
Accepted author manuscript	File Access Level Open
Copyright Statement	This is an Accepted Manuscript of an article published by Inderscience in International Journal of Entrepreneurship and Small Business, the final published version is available at: https://doi.org/10.1504/IJESB.2025.149947 The author accepted manuscript version is included in this repository in accordance with the Inderscience copyright and author entitlement policy https://www.inderscience.com/mobile/inauthors/index.php?pid=74
Web address (URL)	https://www.inderscience.com/info/inarticle.php?artid=149947
Digital Object Identifier (DOI)	https://doi.org/10.1504/IJESB.2025.149947
Web of Science identifier	WOS:001619496900006
Language	English

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