The Impact of Innovation Activities on the SME's Growth Performance: A Study of Small and Medium Sized Firms in the Emerging Egyptian Market, Egypt

Abstract

The purpose of this study is to contribute to the literature on business management and innovation on SMEs and their innovative behaviors in the socio-economic context of Egypt. The Egyptian market is considered to be one of the fastest growing emerging markets and economies in the Middle East and North Africa and is dominated by SMEs. With the support of the government, it has reached substantial levels of modernization, industrialization, and rapid economic growth.

The research problem of this study is: to identify the factors that facilitate innovation practices for SMEs in the emerging Egyptian market and examine the relationship between innovation practices and business growth. Furthermore, the specific objectives of this research study are: to provide new insights into the innovation development activities of an emerging market (the macro-environmental perspective); gain a better understanding of the innovation capacities and practices of SMEs (the micro-environmental perspective); and determine the impact of innovation practices on the business growth of SMEs. The focus is on the innovation practices of SMEs and their key external and internal backgrounds, and the impact of these innovation practices on business growth in the emerging Egyptian market.