Evaluating the Relationship between Stakeholder Pressure and Innovation in Ghanaian SMEs: Moderating Role of Firm Size
Samuel Kofi Otchere
*
School of Management, Jiangsu University, 301 Xuefu Road, Zhenjiang, 212013, Jiangsu, China.
Hongyun Tian
*
School of Management, Jiangsu University, 301 Xuefu Road, Zhenjiang, 212013, Jiangsu, China.
Cephas Paa Kwasi Coffie
*
School of Management and Economics, University of Electronic Science and Technology of China, 611731, Chengdu, China.
*Author to whom correspondence should be addressed.
Abstract
The study examines the relationship between stakeholder pressure and innovation (Technological and non-technological) in Ghanaian SMEs. Further, it explores the moderating role of firm size in this relationship. This is in response to the ongoing debate on the role of innovation in the performance and survival of small businesses in Ghana. Using the survey response of 523 registered SMEs, the SmartPLS model estimate reveals that; stakeholder pressure influences both technological and non-technological innovation in Ghanaian SMEs. Further, the size of the SMEs has no significant moderation in the positive relationship between stakeholder pressure and innovation in Ghana. Consequently, SMEs in Ghana can take advantage of the pressure from internal and external stakeholders to innovate for sustainable growth. Again, the government should provide avenues for innovative collaborations between universities, government agencies, and SMEs. Finally, studies should focus on inexpensive innovation channels capable of transforming the SME industry of Ghana.
Keywords: Stakeholder pressures, innovation, firm size, SMEs, Ghana