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Effect of creativity and innovation based training on small enterprises' performance: evidence from Ethiopia

Author

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  • Arega Shumetie
  • Wondifraw Mihret

Abstract

Development policy makers stipulate directives to capacitate human capital vital to surmount challenges, unlock potentials and enhance competitiveness. This study analysed the effect of evolutionary process of creativity and innovation based technical vocational education and training (TVET) on small enterprises' (SEs') performance. It adds insights to innovation theory signifying how far evolutionary creativity trainings attribute to performance. Propensity score matching and causal inference econometric model analyses of the data collected from randomly selected 146 manufacturing SEs revealed that creativity and innovation strategies are partially harnessed in everyday practices of trained enterprises. Insignificant differences were observed between trained and untrained SEs in creative thinking, motivation, innovative practices and searching for opportunities. Different from the slight effect of short-term trainings, program-based trainings significantly affected capital and asset accumulation. Thus, intensifying the quality and scope of trainings should be prioritised to sustain creativity and innovation for human resource and performance development.

Suggested Citation

  • Arega Shumetie & Wondifraw Mihret, 2020. "Effect of creativity and innovation based training on small enterprises' performance: evidence from Ethiopia," International Journal of Innovation and Sustainable Development, Inderscience Enterprises Ltd, vol. 14(4), pages 375-396.
    • Handle: RePEc:ids:ijisde:v:14:y:2020:i:4:p:375-396
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    Cited by:

    1. Wondifraw Mihret Dessie & Gojjam Ademe Mengistu & Tigist Abera Mulualem, 2022. "Communication and innovation in the performance of weaving and pottery crafts in Gojjam, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-22, December.

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