Journal of Management Policies and Practices

New Paradigms on Performance of SMEs: Reflection on Entrepreneurial Innovation in Burundi
Eunice Dushime, Stephen Muathe, Lucy Kavindah

Abstract
According to private sector development strategy in Burundi, small and medium enterprises contribute 13% of the gross domestic product, while the expected contribution is deemed to rise to 50% in 2025. Nevertheless, the observed performance potential is hampering their contribution to Burundi’s socioeconomic development. Small and medium enterprises encounter obstacles that hinder their performance which they can improve by adopting entrepreneurial innovation as a strategy. The focus of this paper was to examine how entrepreneurial innovation affects the performance of small and medium enterprises in Bujumbura, Burundi. The specific objectives of the study were to analyze the effects of product, process, organizational, and market innovation on the performance of small and medium enterprises. The resource-based view and dynamic capability theory were the main theories. Descriptive and inferential statistics were used to analyze quantitative data. The study found that process, organizational, and market innovation all had a significant effect on the performance of small and medium enterprises, while product innovation had no effect. The study recommends that small and medium business owners and managers should focus their efforts on establishing entrepreneurial innovation such as process, organizational, and market innovation to improve their performance and acquire a long-term competitive edge.

Full Text: PDF     DOI: 10.15640/jmpp.v9n2a1