INNOVATION AND PERFORMANCE OF SMALL AND MEDIUM-SIZE ENTERPRISES IN EMERGING ECONOMIES: THE MODERATING ROLE OF INTELLECTUAL CAPITAL

INNOVATION AND PERFORMANCE OF SMALL AND MEDIUM-SIZE ENTERPRISES IN EMERGING ECONOMIES: THE MODERATING ROLE OF INTELLECTUAL CAPITAL

¹Letam Don-Baridam; ²Akpan, Ekom Etim and ³Esubok, Saviour Etim

¹Rivers State University, Rivers State, Nigeria

^2,3Department of Management, University of Nigeria, Enugu Campus

Abstract

This study examined the relationship between innovation and performance of small and medium-size enterprises in emerging economies. Also, the moderating role of intellectual capital on innovation and performance was tested. Innovation was observed using service innovation and process innovation, while performance was decomposed into quality and cost effectiveness. Five research hypotheses were formulated for the study. The correlational research design was followed while data were generated using a structured questionnaire. Partial least structural equation modeling was used in testing the study hypotheses. It was found that service innovation and process innovation positively correlated with quality and cost effectiveness. Also, it was found that, intellectual capital positively influences the relationship between innovation and performance of the small and medium-size enterprises. Therefore, it was recommended that, the small and medium-size enterprises should frequently introduce new and improved products/services to satisfy the changing needs of their customers.

Keywords: Innovation, Performance, Small and Medium-Size Enterprises, Economies, Intellectual Capital

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