Innovation capability and SME performance in times of economic crisis: does government support moderate?

Abstract

PurposeDrawing on the dynamic capabilities theory, the purpose of this study is to empirically explore the moderating role of government support (GS) in the relationship between innovation capability (IC) and small and medium-sized enterprise (SME) performance in times of economic crisis.Design/methodology/approachThe study adopted a descriptive research design and collected data from 234 SMEs drawn from the six geopolitical zones of Nigeria using a self-reported questionnaire. PLS-SEM was performed to test the hypotheses.FindingsThe results showed that IC was positively associated with SME performance. Further analysis indicated that GS had a strong positive impact on SME performance and positively moderated the relationship between IC and SME performance.Originality/valueThere is a paucity of studies that specifically explore the moderating role of GS in the relationship between IC and SME performance. This study contributes to the literature on SMEs by demonstrating the moderating effect of GS on the relationship between IC and SME performance in times of economic crisis. The study offers valuable insights into the vital role played by IC and GS in times of economic crisis.

Internal factors affecting the performance of employee-based savings and credit cooperatives: evidence from Nigeria

“…It implies that more INNOV would lead to greater performance of the cooperatives. The findings are in agreement with previous related studies (Atalay et al , 2013; Oke et al , 2007; Otache and Usang, 2021; Sethibe and Steyn, 2016; Solangi et al , 2017; Tajuddin et al , 2015; Twaliwi and Isaac, 2017). In a related study, Otache and Usang (2021) reported that innovation capability has a positive impact on SME performance.…”

“…It provides empirical evidence of the positive impacts of MCE, MEP, INNOV and ICS on the performance of employee-based SACCOs in a single study. Generally, organisational performance is affected by a multiplicity of factors (Otache and Usang, 2021). Therefore, examining the impacts of the factors jointly on performance would make more sense than ascertaining their impacts individually.…”

Buyer–seller interactions and customer satisfaction – the moderating role of COVID-19 protocols: a study of small apparel fashion enterprises in the regional shopping malls in Ghana

“…Apart from the economic contraction of about 7.8% faced by Sub-Saharan Africa, which has led to the reduction of governments’ tax revenues, the International Monetary Fund even had to change its policies to help absorb the severity by excluding many African countries from its lending (Jayamohan et al ., 2021; Long and Ascent, 2020). Since small apparel fashion enterprises do not work in a vacuum, the crisis has also affected the management practices of small businesses in general, especially those relating to their survival, activities, performance and interactions with customers (Otache and Usang, 2022). In situations where an economic crisis erupts, it is normal for business activities like production, marketing and organisational practices to become interrupted, just as we are currently witnessing across the global world (Otache and Usang, 2022).…”

“…Since small apparel fashion enterprises do not work in a vacuum, the crisis has also affected the management practices of small businesses in general, especially those relating to their survival, activities, performance and interactions with customers (Otache and Usang, 2022). In situations where an economic crisis erupts, it is normal for business activities like production, marketing and organisational practices to become interrupted, just as we are currently witnessing across the global world (Otache and Usang, 2022). Moreover, areas such as technological changes, COVID-19 rules and regulations, trade liberalisation, those related to organisational settings and shopping environments and a shift of people to shop online are just a few of what we can mention as influencing management and enterprise practices (Sharma, 2020).…”

Examination of survival strategies of quantity surveying firms amid COVID-19 pandemic disruption in Lagos State, Nigeria

“…Developing economies are facing significant challenges in responding to the pandemic compared to developed economies (Piramanayagam and Seal, 2021;Georgieva, 2020). On the other hand, Al-Tamimi and Jaradat (2019) have established that SMEs find it difficult to survive in good times, now that the business environment is not favorable due to the disruption caused by COVID-19, their chances of survival are slimmer (Otache and Usang, 2022;Singh et al, 2022). Toanoglou et al (2021) stated that the COVID -19 pandemic has caused an existential crisis to small and medium enterprises.…”