The challenges of ever-changing technological and financial landscape call for experienced, open-minded and visionary SME managers to match the pace and be innovative to enhance firm competitive advantages. The challenges are even more rampant in Africa, characterized by noticeable technological and financial vulnerability demanding special attention.
OBJECTIVE:
This study focused on analyzing the impact of African SME use of ICT and the use of financial services on firm innovation performance. The study further, explore the mediating effect of firm manager’s experience on the firm use of ICT and financial services-innovation performance relationship.
METHODS:
Utilizing data from the enterprise survey portal, a total of 11504 SMEs from 27 countries are involved in the analysis. The analysis employed multiple regression models using SPSS 23, and the mediation effect analysis employed the Sobel test of mediation.
RESULTS:
The general results indicate a significant association of firm use of ICT and financial services on its innovation performance, with exception of the variable of firm website ownership, which had an insignificant association with its ability to introduce new products/services. Also, the results depict the SME manager’s experience to significantly mediate the firm use of ICT and use of financial services-innovation performance relationship, but out of ten, only two models had an insignificant mediation effect of the manager’s experience on the firm having its own website-innovation performance relationship.
CONCLUSION:
The study results provide a profound impact of the relevant SME managerial experience on the ability to well manage the cotemporally dynamic resources like technology and finances for enhancing firm innovation which results in increased competitive advantage.
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