Contribution of Innovation towards the Competitive advantage of printing SMEs within the Kampala Central District.

Abstract

This study assessed the contribution of innovation towards the competitive advantage of small and medium size printing enterprises in Kampala. The study covered the current period of 2017 because this is the time when Ugandan printing industry has greatly improved and become competitive. The study had the following specific objectives: i) To assess the contribution of product innovation on competitive advantage in printing SMEs in Kampala; ii) To assess the contribution of process innovation on competitive advantage in printing SMEs in Kampala; and iii) To assess the contribution of market innovation and competitiveness advantage in printing SMEs in Kampala. A cross-sectional survey study design was adopted for this research. Data was obtained through questionnaire, interviews, and documentary review. A total of 52 participants took part in the study from a sample of 64 respondents who were selected. This represents 81.25% total response rate from both the questionnaires and interview guide which was significant for the study. The results showed that competitiveness among the printing SMEs within Kampala Central Business District has increased over the years due to Ugandan government support to local investment initiatives. The study showed that innovation significantly affects competitive advantage among printing SMEs within Kampala Central Business District with product innovation accounted for 18.7%, process innovation accounted for 23.0% and market innovation accounted for 37.8% of the variances in competitive advantage of the firms other factors constant. It was concluded that an effective and efficient innovation is crucial to achieving competitive advantage among printing SMEs within Kampala Central Business District. It was recommended that staff be involved in developing innovation strategy so that its implementation is carried out with a true picture of what to be achieved by the SMEs within Kampala Central Business District. The study is expected to expand the body of knowledge in the area of innovation and competitive advantage. Suitable areas for further research were proposed not limited to “The impact of product innovation on competitive advantage of the firms”, and “The impact of innovation on the printing SMEs in other districts in Uganda”.