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The Influence of Market Competition on SMEs’ Performance in Emerging Economies: Does Process Innovation Moderate the Relationship?

Author

Listed:
  • Solomon Abekah Keelson

    (Department of Marketing and Strategy, Takoradi Technical University, Takoradi WH1851, Ghana)

  • Juraj Cúg

    (Department of Economics, Faculty of Operational and Economics of Transport and Communications, University of Zilina, 010 26 Zilina, Slovakia)

  • John Amoah

    (Department of Marketing and Strategy, Takoradi Technical University, Takoradi WH1851, Ghana)

  • Zora Petráková

    (Institute for Forensic Engineering, Faculty of Civil Engineering, Slovak University of Technology, 810 05 Bratislava, Slovakia)

  • Jacob Odei Addo

    (Department of Marketing and Strategy, Takoradi Technical University, Takoradi WH1851, Ghana)

  • Abdul Bashiru Jibril

    (School of Management and Economics, University of Kurdistan Hewlêr, 30 Metre Avenue, Erbil, Kurdistan Region, Iraq)

Abstract

Small and medium enterprises (SMEs) are vital to the economic development of emerging economies, significantly contributing to employment, innovation, and GDP growth. This study investigates the influence of market competition on SME performance in emerging economies, specifically examining the moderating role of process innovation. Using a sample of 365 SMEs in the western region of Ghana, the research employed a convenience sampling technique to gather data. The analysis utilized partial least square structural equation modeling (PLS-SEM) to explore the relationships between market competition, process innovation, and SME performance. The findings revealed that three direct hypotheses were supported, indicating a positive relationship between market competition and SME performance, while the moderated hypotheses were not supported. These insights provide valuable implications for SME owners, managers, and policymakers.

Suggested Citation

  • Solomon Abekah Keelson & Juraj Cúg & John Amoah & Zora Petráková & Jacob Odei Addo & Abdul Bashiru Jibril, 2024. "The Influence of Market Competition on SMEs’ Performance in Emerging Economies: Does Process Innovation Moderate the Relationship?," Economies, MDPI, vol. 12(11), pages 1-20, October.
    • Handle: RePEc:gam:jecomi:v:12:y:2024:i:11:p:282-:d:1504158
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    References listed on IDEAS

    as
    1. David J. Reibstein & Paul W. Farris, 1995. "Market Share and Distribution: A Generalization, a Speculation, and Some Implications," Marketing Science, INFORMS, vol. 14(3_supplem), pages 190-202.
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    3. Sisira Kumara Naradda Gamage & EMS Ekanayake & GAKNJ Abeyrathne & RPIR Prasanna & JMSB Jayasundara & PSK Rajapakshe, 2020. "A Review of Global Challenges and Survival Strategies of Small and Medium Enterprises (SMEs)," Economies, MDPI, vol. 8(4), pages 1-24, October.
    4. Minna Saunila & Sanna Pekkola & Juhani Ukko, 2014. "The relationship between innovation capability and performance," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 63(2), pages 234-249, January.
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