ISSN: 2226-3624
Open access
The study is premised on unveiling the role of government support, innovation capability, and firm performance. This study aimed at examining the relevance of government financial and non-financial support and SME performance. The moderating role of innovation capability was also examined in the study. The data was gathered through convenience sampling method. Using a self-administered questionnaire, 400 SME operators in five major business cities in the Eastern Region of Ghana were understudied. Using PLS Structural Modelling, analyses were conducted. It was revealed that both governments financial and nonfinancial support is significantly linked to organizational performance, while product innovation capability is strongly linked to organizational performance. Meanwhile, product innovation capability exhibited a mixed result for its mediating role in the relationship between government financial support and non-financial support and organizational performance. The study thus reveals the relevance of government support and innovation capability on SME organizational performance.
Afriyie, S., Duo, J., Appiah, K., & Musah, A. I. (2018). The Nexus between Types of Innovation and Marketing Performance of Small Medium-sized Enterprises in an Emerging Economy, International Review of Management and Marketing, 8(6), 78-92.
Ahmad, S. Z., & Xavier, S. R. (2011). Entrepreneurial environments and growth?: evidence from Malaysia GEM data. Journal of Chinese Entrepreneurship, 4(1) 50-69.
Alkahtani, A., Nordin, N., & Khan, R. U. (2020). Does government support enhance the relation between networking structure and sustainable competitive performance among SMEs??, 3.
Appiah, K., Selassie, H., & Burnley, R. (2015). Determinants of SME international competitiveness: a case of Ghanaian horticultural exporters. The Business and Management Review (Vol. 6).
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120.
Bojica, A. M., & Fuentes-fuentes, M. M. (2019). Knowledge Acquisition and Corporate Entrepreneurship?: Insights from Spanish SMEs in the ICT Sector, (July 2012).
Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2002). Learning orientation , firm innovation capability , and firm performance, 31, 515–524.
Cant, M. C., & Wiid, J. A. (2016). “ The use of traditional marketing tools by SMEs in an emerging economy?: a South African perspective ” The use of traditional marketing tools by SMEs in an emerging economy?: a South African perspective. Problems and Perspectives in Management, 14(1), 64-70.
Chundakkadan, R., & Sasidharan, S. (2020). Financial constraints , government support , and firm innovation?: empirical evidence from developing economies.
Davis, P. J., & Simpson, E. (2017). Resource-Based Theory , Competition and Staff Differentiation in Africa?: Leveraging Employees as A Source of Sustained Competitive Advantage, 17(2012), 19–33.
Eichhorn, B. R. (2014). Common Method Variance Techniques. Midwest SAS Users Group, 1–11. Retrieved from http://mwsug.org/2014-proceedings.html
Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39.
Giraudo, E., Giudici, G., & Grilli, L. (2019). Entrepreneurship policy and the financing of young innovative companies: Evidence from the Italian Startup Act. Research Policy, 48(9), 1–68.
Hair, Joe F, Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Academy of Marketing Science, 414–433.
Hair, Joseph F, Risher, J. J., & Ringle, C. M. (2018). When to use and how to report the results of PLS-SEM, 31(1), 2–24.
Harahap, K., Raharja, J., Abdoellah, O. S., & Muftiadi, A. (2017). Effect of Product Differentiation Implementation on Marketing Performance on Apparel Industry in Bandung City, 19(5), 41–50.
Hassan, R. Al, & Thurlow, J. (2010). A NEW ERA OF Lessons from.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling, 115–135.
Herman, H., Hady, H., & Arafah, W. (2018). The Influence of Market Orientation and Product Innovation on the Competitive Advantage and Its Implication toward Small and Medium Enterprises ( UKM ) Performance, 04(08), 8–21.
Hong, J., Feng, B., Wu, Y., & Wang, L. (2016). Technovation Do government grants promote innovation ef fi ciency in China ’ s high-tech industries?? Technovation, 57–58, 4–13.
Jimenez-jimenez, D., & Sanz-valle, R. (2011). Innovation , organizational learning , and performance. Journal of Business Research, 64(4), 408–417.
Liao, Y., & Barnes, J. (2015). Knowledge acquisition and product innovation flexibility in SMEs. Business Process Management Journal, 21(6), 1257–1278. https://doi.org/10.1108/BPMJ-05-2014-0039
Lonial, S. C., & Carter, R. E. (2015). Medium and Small Firm Performance?: A Resource-Based Perspective, 53(1), 94–113.
Ma, Y., Yin, Q., Pan, Y., Cui, W., & Xin, B. (2018). Green Product Innovation and Firm Performance?: Assessing the Moderating Effect of Novelty-Centered and Efficiency-Centered Business Model Design. Sustainability, MDPI.
Naala, M. N. I., Nordin, N. B., & Omar, W. A. B. W. (2017). Innovation Capability and Firm Performance Relationship: a Study of Pls-Structural Equation Modeling (Pls-Sem). International Journal of Organization & Business Excellence, 2(1), 39–50.
Pierre, A., & Fernandez, A.-S. (2018). Going Deeper into SMEs’ Innovation Capacity: An Empirical Exploration of Innovation Capacity Factors. Journal of Innovation Economics (Vol. 25).
Ramukumba, T. (2014). Overcoming SMEs Challenges through Critical Success Factors?: A Case of SMEs in the Western Cape Province , South Africa, 16(1), 19–38.
Santoro, G., Vrontis, D., & Pastore, A. (2017). External knowledge sourcing and new product development: Evidence from the Italian food and beverage industry. British Food Journal, 119(11), 2373–2387.
Saunila, M. (2020). Innovation capability in SMEs: A systematic review of the literature. Journal of Innovation and Knowledge, 5(4), 260–265.
Schouten, B., Cobben, F., Lundquist, P., & Wagner, J. (2016). Does more balanced survey response imply less non-response bias?? Journal of the Royal Statistical Society. Series A (Statistics in Society, 179(3), 727–748.
Songling, Y., Ishtiaq, M., & Anwar, M. (2018). The Role of Government Support in Sustainable Competitive Position and Firm Performance. Sustanability, 10(3495), 1–17.
Szczygielski, K., Grabowski, W., Pamukcu, M. T., & Tandogan, V. S. (2017). Does government support for private innovation matter? Firm-level evidence from two catching-up countries. Research Policy.
Szczygielski, K., Grabowski, W., Teoman, M., & Sinan, V. (2017). Does government support for private innovation matter?? Firm-level evidence from two catching-up countries. Research Policy, 46(1), 219–237.
Thongsri, N., & Chang, A. K. H. (2019). Interactions among factors influencing product innovation and innovation behaviour: Market orientation, managerial ties, and government support. Sustainability (Switzerland), 11(10).
Tuan, N., Nhan, N., Giang, P., & Ngoc, N. (2016). The effects of innovation on firm performance of supporting industries in Hanoi – Vietnam. Journal of Industrial Engineering and Management, 9(2), 413–431.
Wang, J. (2018). Innovation and government intervention?: A comparison of Singapore and Hong Kong. Research Policy, 47(2), 399–412.
Wei, J., & Liu, Y. (2015). Government support and firm innovation performance Empirical analysis of 343 innovative, 38–55.
Zgrzywa-ziemak, A. (2015). The Impact of Organisational Learning on Organisational Performance. Management and Business Administration. Central Europe, Vol. 23, No. 4/2015: P. 98–112, 23(4), 98–112.
In-Text Citation: (Gligah & Zaidin, 2023)
To Cite this Article: Gligah, B. K., & Zaidin, N. (2023). Nexus of Government Support, Product Innovation Capability, and Organizational Performance of Manufacturing SMES in Ghana. International Journal of Academic Research in Economics and Management and Sciences, 12(2), 328 – 344.
Copyright: © 2023 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode