A Study of the Impact of Managerial Innovation on SME Performance in Africa

Abstract

Purpose. Managerial innovation, if it constitutes a real lever for transformation and performance of companies in developed countries, in Africa, only a tiny part of SME managers make it a priority. At the same time, most African economies continue to be at the forefront of the adoption of global technological innovations. Given the fact that managerial innovation has proven itself in the Western context, and that the context of Sub-Saharan Africa is still unclear, it is important to develop management methods in this context by adapting them to new ones economic models, new objectives, new processes in order to see its impact on improving the productivity and performance of SMEs. Design/Methodology/Approach. A survey instrument based on the questionnaire was used to collect quantitative data to explain the performance of SMEs through the adoption of managerial innovation. For data analysis, multiple linear regression analysis was used. Findings and implications. The findings indicate that, managerial innovation, through its two main components, "change in management practices" and "change in organizational structure", make it possible to increase market share, production efficiency, the bottom line and, in turn, improve the overall performance of the business. Overall, the results of the study show that the fit model is of good quality and can be used to explain the theory. Limitations. The results of this study may not be generalisable to all African SMEs because they are based only on a sub-Saharan African country and the sample size therefore remains small. Originality. The contribution of this article is manifold: it supports the theories of contingency and resource dependence that organizations are adaptive systems that introduce changes to function effectively and improve their performance. Second, it allows SME managers to optimize the chances of sustainability for their businesses, because managerial innovation allows them to: differentiate themselves from their competitors by inventing new offers. Finally, it allows SME managers to no longer confine themselves to the technological aspect of innovation (products, processes) whose lifespan is constantly shortened. Studies of this nature can lead to stimulating managerial innovation in emerging and developing countries, by developing horizontal or networked organizational structures and no longer vertical and pyramidal structures which no longer meet current requirements.

Decentralized Organizational Structure and its Impact on Managerial Performance in Moroccan SMEs

“…Building on this foundation, Van Auken et al ( 2008), Birkinshaw et al (2008), Damanpour et al (2009), Walker et al (2010), Alzuod and Kharabsheh (2015), and Maalej and Amami (2016) collectively contribute to the understanding that managerial innovation positively influences the overall performance of SMEs. Boubakary et al (2020) extend this argument, asserting that the adoption of new innovative management practices, including changes in organizational structure, improves the overall performance of SMEs.…”

“…In linking organizational structure to managerial performance, various studies are cited (Boubakary et al, 2020;Alzuod and Kharabsheh, 2015;Maalej and Amami, 2016;Boudabbous et al, 2012;Van Auken et al, 2008;Birkinshaw et al, 2008;Damanpour et al, 2009;Walker et al, 2010;Anis, 2008;Chenhall, 2003;Gul and Chia, 1994;Gordon and Miller, 1976). The article emphasizes the importance of the alignment between the Accounting Information System (AIS) and organizational structure in enhancing managerial performance (Chenhall, 2003;Gordon and Miller, 1976).…”

“…Despite the scarcity of research specifically focused on managerial performance, a growing body of literature attempts to establish a connection between organizational structure and managerial performance (Boubakary et al, 2020;Alzuod and Kharabsheh, 2015;Maalej and Amami, 2016;Boudabbous et al, 2012;Van Auken et al, 2008;Birkinshaw et al, 2008;Damanpour et al, 2009;Walker et al, 2010;Anis, 2008;Chenhall, 2003;Gul and Chia, 1994;Gordon and Miller, 1976). Chenhall (2003) and Gordon and Miller (1976) argue that managerial performance is enhanced when there is a "fit" between the characteristics of the Accounting Information System (AIS) and the organizational structure.…”

“…Citing a broad spectrum of literature, the research establishes a clear link between decentralized structures and heightened managerial performance, emphasizing the pivotal role of alignment between the Accounting Information System (AIS) and organizational structure (Chenhall, 2003; Gul and Chia, 1994). The paper culminates in hypothesis, positing that decentralized companies exhibit superior managerial performance (Boubakary et al, 2020). This abstract provides a succinct overview of the study's exploration of organizational design and managerial efficacy, serving as a valuable resource for businesses navigating the intricacies of the modern business landscape.…”

Relationship between ecosystem innovation and performance measurement models

“…In a highly competitive market, performance measurement gains relevance due to the constant change in the nature of work, increased competitiveness and information technology. Historically, the performance of organizations was more commonly measured by financial indicators, which led to criticism because they serve as a short-term guide and are not linked to the organization's long-term performance strategies (Boubakary et al. , 2020; Neely, 1999).…”