The impact of market knowledge acquisition on product innovation performance in small and medium scale enterprises

Abstract

This paper aimed to determine the relative impact of market knowledge acquisition (knowledge gained from customers, and competitors') acts on product innovation performance in smaller firms. Based on data collected through a convenience sampling technique, survey questions of 462 SME operators, and a review of user-generated content, this study provides a look into the market knowledge of Ghanaian manufacturing micro, small, and medium scale enterprises in the eastern sector. The traditional double-step model was used to evaluate the measurement model and then estimate the structural model using SPSS and Smart PLS (Partial Least Square). The outcome of the study revealed two [2] out of the four [4] hypotheses supported; the findings showed that market knowledge acquisition which comprised customers' and competitors' knowledge remains critical drivers of product innovation performance. Meanwhile, the study revealed firm absorptive capacity does not moderate market knowledge acquisition and product innovation performance.