The effect of innovation on performance of manufacturing firms: the role of network ties
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Date
2023
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KNUST
Abstract
Shifts in consumer tastes and preferences, as well as major competition among businesses, have put a lot of pressure on businesses, forcing them to introduce new products, processes, or ideas into their operations. Under this current dispensation of global competition, how business innovation impacts firm performance remains a hot debate. It is on the strength of this background that this study aimed to assess the impact of innovation on firm performance. The study was conducted using the manufacturing sector as a case. Primary data was collected through questionnaires as the main data collection tool for the study. The data were analysed quantitatively with the help of SPSS. Descriptive statistics, correlation, and Ordinary Least Square (OLS) regression were used to describe and analyse the data. The findings of the study revealed a positive but insignificant relationship between innovation and firm performance. The study further revealed a significant negative relationship between network ties and firm performance. It was further revealed that network ties play a moderating role in the relationship between innovation and manufacturing firms’ performance. The study therefore recommended to owners and managers of manufacturing firms that they keep abreast of changes in the market, invest in research and development, engage in organisational learning, and continue to be innovative in their business processes as well as in their products and services. The study also recommends that employees continue to learn, conduct research and development, and report the findings to management to be ahead of their competitors. In line with this, management should create a channel that would enable employees to communicate freely with superiors about their ideals and innovative skills
Description
A thesis submitted to the department of marketing and corporate strategy, kunst school of business, Kwame Nkrumah university of science and technology, in partial fulfillment of the requirements for the award of the degree of master of business administration