Determinants of Innovative Success: A study of Small to Medium Enterprises in Oromia Zone Surrounding Finfinne

Abstract

The main purpose of this study is to investigate the determinants of innovative success of small to medium enterprises in Ethiopia. A qualitative research approach was employed in the investigation. Instruments used to collect data were semi-structured interviews. Accordingly, through face-to-face interviews with 49 owners/managers of small to medium enterprises data were collected. With this study, many determinant factors of product innovative success were identified. However, the three strategic types; namely entrepreneurial orientation, market information processing and network ties were identified as the highly important while experience of workers and education levels of owners/managers of small firms were also mentioned as other factors. Also, the importance of market information utilization and network ties with other enterprises have been great but contributions of the so-called technology-issuing information channels were not significantly used by many enterprises. But, until now, the market information was not as much formally acquired and utilized by many small firms to produce a planning, competitor analysis, internal analysis and for product innovation. Therefore, recommend as all the information together should be used to produce a new product that help for product innovation success.