Critical Issues In Smes And Innovation In Contemporary Zimbabwe: A Literature Review
Grace Chikomborero Ndafira
Business School, Nanjing University of Information Science and Technology
Professor Jiang Cai Lou
Business School, Nanjing University of Information Science and Technology
Isaiah Adegoke
Business School, Nanjing University of Information Science and Technology
Keywords: Economy, Innovation, Performance, SMEs, Zimbabwe
Abstract
This article examines critical issues in the deployment of innovation in facilitating SME activities in the Zimbabwean economy. The study focuses on key elements that affect the acceptance and effective utilization of innovation capabilities and its impacts in improving performance of SMEs in Zimbabwe. The study deployed a qualitative research approach relying on secondary data on performance of SMEs in the context of innovation use in contemporary Zimbabwe. The findings obtained from the investigation revealed that the main barriers to innovation and adoption in Zimbabwean SMEs are unfavorable government policy; lack of technological and market information; high cost of innovation; organizational culture; size of enterprises; the lack of financing; and poor cooperation amongst the SMEs. However, the study also found that SMEs that successfully integrate innovation enjoy relatively better performance than those that resist its integration. Overall, these findings highlight the importance of innovations on SMEs performance. The study concludes by drawing some important recommendations on the need for enhancing the connection between innovation and SMEs in the country.