Innovation Among Small And Medium Scale Enterprises (Smes) In Ghana: Assessing The Constraining Factors.

ABSTRACT In recognition of the recent relevance of SMEs and innovation, which is as a result of their potential to contribute substantially to economic growth and development, academics and practitioners have focused attention on these subject matters. In a similar vein, the current study seeks to investigate innovation among SMEs in Ghana and has focused on assessing the constraints of innovation. In view of this, the current study seeks to identify the internal and external factors that constrain innovation among SMEs in Ghana. Additionally, the researcher, based on the findings proffered some recommendations to mitigate the impact of these constraining factors on innovation. As a result of its pragmatic philosophy, the current study, adopted a mixed method approach. In view of this, the study used 12 respondents to qualitatively identify the constraining factors relevant to the innovation process in Ghana. Consequently, 100 respondents were sampled to assess the impact of these constraining factors on SME innovation. The results revealed that the top three constraining factors, which were classified as “high constraints” were all internal factors including, management time related, human resources related and technical expertise related factors respectively. Management time related factors emerged as the most impactful constraining factor. Employee commitment and trust in the workplace were found to be very important human related constraints that impedes innovation among SMEs in developing economies like Ghana. In this respect, the researcher recommends that government and non–governmental agencies purporting to offer support to SMEs with regard to innovation can educate these firms on time management and internal marketing strategies to help them manage their time, employee commitment and trust in the workplace.