Nexus of Government Support, Product Innovation Capability, and Organizational Performance of Manufacturing SMES in Ghana

Abstract

The study is premised on unveiling the role of government support, innovation capability, and firm performance. This study aimed at examining the relevance of government financial and non-financial support and SME performance. The moderating role of innovation capability was also examined in the study. The data was gathered through convenience sampling method. Using a self-administered questionnaire, 400 SME operators in five major business cities in the Eastern Region of Ghana were understudied. Using PLS Structural Modelling, analyses were conducted. It was revealed that both governments financial and nonfinancial support is significantly linked to organizational performance, while product innovation capability is strongly linked to organizational performance. Meanwhile, product innovation capability exhibited a mixed result for its mediating role in the relationship between government financial support and non-financial support and organizational performance. The study thus reveals the relevance of government support and innovation capability on SME organizational performance.