uk

Article

The impact of innovation dimension and marketing intelligence on the performance of small and medium enterprises in Ghana

Francis Osei Reagan Mensah Collins Kankam-Kwarteng Joyce Dankwah Owusu
Abstract

With small and medium-sized enterprises being vital contributors to economic growth, understanding the factors influencing their performance is crucial. The purpose of the study was to empower Ghanaian small and medium-sized enterprises with the knowledge and tools needed to effectively leverage innovation and marketing intelligence, driving sustainable growth and competitiveness in the evolving business landscape. Utilising a quantitative approach, 200 respondents were surveyed using random sampling. The study utilised dynamic capabilities to substantiate and explain the social phenomena analysed using the statistical package for Social Sciences and Structural Equation Modelling techniques. The results indicate that small and medium-sized enterprises stand to benefit from enhancing marketing, product, organisational, and process innovation to bolster their performance in the competitive landscape. Despite the acknowledged importance of innovation in small and medium-sized enterprises, empirical studies focusing on specific dimensions and their impact on performance are limited. This study fills this gap by identifying and analysing the relationships between innovation dimensions, market intelligence, and small and medium-sized enterprises performance. By providing actionable insights derived from empirical analysis, the research offers valuable guidance for small and medium-sized enterprises stakeholders, aiding strategic decision-making and competitiveness enhancement. Moreover, the study contributes to theoretical development by enriching understanding of how innovation and marketing intelligence drive small and medium-sized enterprises performance. The practical implications of the findings are significant, offering small and medium-sized enterprises a roadmap for leveraging innovation and market intelligence to thrive in dynamic business environments. Overall, this study enhances scholarly knowledge of the factors influencing small and medium-sized enterprises performance and provides practical guidance for small and medium-sized enterprises operators, policymakers, and other stakeholders invested in the success of small and medium-sized enterprises in Ghana

Keywords

product; process innovations; organisation; economic growth

Download article

Received 11.07.2024, Revised 21.10.2024, Accepted 17.12.2024

Retrieved from Vol. 11, No. 2, 2024

Suggested citation

Osei, F., Mensah, R., Kankam-Kwarteng, C., & Owusu, J.D. (2024). The impact of innovation dimension and marketing intelligence on the performance of small and medium enterprises in Ghana. Economics, Entrepreneurship, Management, 11(2), 8-18. https://doi.org/10.56318/eem2024.02.008

https://doi.org/10.56318/eem2024.02.008

Pages 8-18

References

[1] Ahmad, S.F., Han, H., Alam, M.M., Rehmat, M.K., Irshad, M., Arraño-Muñoz, M., & Ariza-Montes, A. (2023). Impact of artificial intelligence on human loss in decision making, laziness and safety in education. Humanities and Social Sciences Communications, 10, article number 311. doi: 10.1057/s41599-023-01787-8.

[2] Andersén, J. (2021). A relational natural-resource-based view on product innovation: The influence of green product innovation and green suppliers on differentiation advantage in small manufacturing firms. Technovation, 104, article number 102254. doi: 10.1016/j.technovation.2021.102254.

[3] Anderson, J.C., & Gerbing, D.W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411-423. doi: 10.1037/0033-2909.103.3.411.

[4] Avkiran, N.K. (2018). Rise of the partial least squares structural equation modeling: An application in banking. In N. Avkiran & C. Ringle (Eds.), Partial least squares structural equation modeling. International series in operations research & management science (pp. 1-29). Cham: Springer. doi: 10.1007/978-3-319-71691-6_11-29.

[5] Chintalapati, S., & Pandey, S.K. (2022). Artificial intelligence in marketing: A systematic literature review. International Journal of Market Research, 64(1), 38-68. doi: 10.1177/14707853211018428.

[6] Dash, G., Kiefer, K., & Paul, J. (2021). Marketing-to-Millennials: Marketing 4.0, customer satisfaction and purchase intention. Journal of Business Research, 122, 608-620. doi: 10.1016/j.jbusres.2020.10.016.

[7] De Giovanni, P., & Cariola, A. (2021). Process innovation through industry 4.0 technologies, lean practices and green supply chains. Research in Transportation Economics, 90, article number 100869. doi: 10.1016/j.retrec.2020.100869.

[8] Fornell, C., & Larcker, D.F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. doi: 10.1177/002224378101800104.

[9] Hanaysha, J.R. (2020). Innovation capabilities and authentic leadership: Do they really matter to firm performance? Journal of Asia-Pacific Business, 21(4), 271-290. doi: 10.1080/10599231.2020.1824523.

[10] Hanif, S., Ahmed, A., & Younas, N. (2023). Examining the impact of environmental management accounting practices and green transformational leadership on corporate environmental performance: The mediating role of green process innovation. Journal of Cleaner Production, 414, article number 137584. doi: 10.1016/j.jclepro.2023.137584.

[11] Helm, R., Krinner, S., & Endres, H. (2020). Exploring the role of product development capability for transforming marketing intelligence into firm performance. Journal of Business-to-Business Marketing, 27(1), 19-40. doi: 10.1080/1051712X.2020.1713562.

[12] Jaradat, Z., Al-Dmour, A., Alshurafat, H., Al-Hazaima, H., & Al Shbail, M.O. (2024). Factors influencing business intelligence adoption: Evidence from Jordan. Journal of Decision Systems, 33(2), 242-262. doi: 10.1080/12460125.2022.2094531.

[13] Khaddam, A.A., Alzghoul, A., Abusweilem, M.A., & Abousweilem, F. (2023). Business intelligence and firm performance: A moderated-mediated model. The Service Industries Journal, 43(13-14), 923-939. doi: 10.1080/02642069.2021.1969367.

[14] Koffi, A.L., Hongbo, L., & Zaineldeen, S. (2021). Examining the impact of innovation types on Ivorian small and medium-sized enterprises (SMEs) performance and competitiveness. International Journal of Academic Research in Accounting Finance and Management Sciences, 11(1), 305-326. doi: 10.6007/IJARAFMS/v11-i1/9223.

[15] Krakah, A., et al. (2015). Integrated business establishment survey: Summary report. Accra: Ghana Statistical Service.

[16] Kuhlmann, M., Bening, C.R., & Hoffmann, V.H. (2023). How incumbents realize disruptive circular innovation – overcoming the innovator’s dilemma for a circular economy. Business Strategy and the Environment, 32(3), 1106-1121. doi: 10.1002/bse.3109.

[17] Maghsoudi, M., & Nezafati, N. (2023). Navigating the acceptance of implementing business intelligence in organizations: A system dynamics approach. Telematics and Informatics Reports, 11, article number 100070. doi: 10.1016/j.teler.2023.100070.

[18] Mai, N.K., Do, T.T., & Ho Nguyen, D.T. (2022). The impact of leadership competences, organizational learning and organizational innovation on business performance. Business Process Management Journal, 28(5/6), 1391-1411. doi: 10.1108/BPMJ-10-2021-0659.

[19] Mbaidin, H. (2024). The dynamic role of business intelligence in developing effective planning strategies through analyzing data as an influential variable: Case of engineering the pharmaceutical sector in Jordan. Uncertain Supply Chain Management, 12(2), 1189-1204. doi: 10.5267/j.uscm.2023.11.015.

[20] Ministry of Trade and Industry of Republic of Ghana. (n.d.). Retrieved from https://moti.gov.gh/v2/.

[21] National Board for Small Scale Industries. (n.d.). Retrieved from https://www.nbssi.org/welcome-to-nbssi/.

[22] Nunnally, J.C. (1978). An overview of psychological measurement. In B.B. Wolman (Ed.), Clinical diagnosis of mental disorders (pp. 97-146). Boston, MA: Springer. doi: 10.1007/978-1-4684-2490-4_4.

[23] Offei, I., Kissi, E., & Nani, G. (2019). Factors affecting the capacity of small to medium enterprises (SME) building construction firms in Ghana. Journal of Construction in Developing Countries, 24(1), 49-63. doi: 10.21315/jcdc2019.24.1.3.

[24] Pancić, M., Ćućić, D., & Serdarušić, H. (2023). Business intelligence (BI) in firm performance: Role of big data analytics and blockchain technology. Economies, 11(3), article number 99. doi: 10.3390/economies11030099.

[25] Qiu, L., Jie, X., Wang, Ya., & Zhao, M. (2020). Green product innovation, green dynamic capability, and competitive advantage: Evidence from Chinese manufacturing enterprises. Corporate Social Responsibility and Environmental Management, 27(1), 146-165. doi: 10.1002/csr.1780.

[26] Ranjan, J., & Foropon, C. (2021). Big data analytics in building the competitive intelligence of organizations. International Journal of Information Management, 56, article number 102231. doi: 10.1016/j.ijinfomgt.2020.102231.

[27] Sabahi, S., & Parast, M.M. (2023). An operations and supply chain management perspective to product innovation. Operations Management Research, 16, 808-829. doi: 10.1007/s12063-022-00339-8.

[28] Torres, R., Sidorova, A., & Jones, M.C. (2018). Enabling firm performance through business intelligence and analytics: A dynamic capabilities perspective. Information & Management, 55(7), 822-839. doi: 10.1016/j.im.2018.03.010.

[29] Wamba, S.F., Gunasekaran, A., Akter, S., Ren, S.J., Dubey, R., & Childe, S.J. (2017). Big data analytics and firm performance: Effects of dynamic capabilities. Journal of Business Research, 70, 356-365. doi: 10.1016/j.jbusres.2016.08.009.

[30] Wu, Q., Yan, D., & Umair, M. (2023). Assessing the role of competitive intelligence and practices of dynamic capabilities in business accommodation of SMEs. Economic Analysis and Policy, 77, 1103-1114. doi: 10.1016/j.eap.2022.11.024.

[31] Yadete, F.D., Kant, S., & Kero, C.A. (2023). Meta-analysis of marketing innovation on firm’s performance of small & medium enterprises with the moderating effect of government support program: In case of selected sub-cities of Addis Ababa, Ethiopia. Partners Universal International Innovation Journal, 1(2), 127-140. doi: 10.5281/zenodo.7857128.