Rewards and Innovation Performance in Manufacturing Small and Medium Enterprises (SMEs)

Gustave Mungeni Kankisingi and Shepherd Dhliwayo
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Gustave Mungeni Kankisingi: Department of Entrepreneurial Studies and Management, Durban University of Technology, Durban 4000, South Africa
Shepherd Dhliwayo: Department of Business Management, College of Business and Economics, University of Johannesburg, Johannesburg 2006, South Africa

Sustainability, 2022, vol. 14, issue 3, 1-19

Abstract: The study investigated types of rewards SMEs offered to intrapreneurs and how these (rewards) contribute to innovation performance (IP). A questionnaire was administered to a sample of 300 SME owner-managers from the industrial spatial distribution areas of Kwa-Zulu Natal province in South Africa. Results show that besides a regular salary offered by 99.5% of the SMEs, fewer than 37.1% of them paid other forms of rewards. The empirical findings show that rewards had an influence on innovation performance. From the 17 rewards awarded to intrapreneurs by SMEs, only “promotion within organisation” and “monetary bonus rewards” had a positive and significant influence on innovation performance. Four other rewards had a significant but negative influence on IP. Rewards are an important tool to encourage crowdsourcing intrapreneurial contribution to IP. Rewards should therefore be strategically selected given the limited financial resources in SMEs. The importance of this study is its focus on SMEs, which are characterised by limited information on the effect of rewards on innovation performance, as well as the efficiency driven economic setting, normally not characterised by “innovation performance”. The study also shows how IP can be crowdsourced through appropriate rewards.

Keywords: innovation performance; rewards; intrapreneurs; small and medium enterprises; crowdsourcing; sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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