Exploring fast moving consumer goods (FMCG) small, medium and micro enterprises manufacturers’ need for innovation to achieve growth
-
DOIhttp://dx.doi.org/10.21511/ee.08(2).2017.01
-
Article InfoVolume 8 2017, Issue #2, pp. 8-16
- Cited by
- 5441 Views
-
1158 Downloads
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
The purpose of this paper is to investigate the problems of the sustainable development, to explore the level of innovation in the fast moving consumer goods (FMCG) manufacturing SMMEs sectors, which most affects on the state of the environment, to identify the causes of low innovation in the industry and to examine these factors influence on the effectiveness of SMMEs manufacturers innovation strategies, as well as to invent a new innovation strategic approach to overcome innovation problems in the economic growth of fast moving consumer goods SMMEs manufacturers. The study is aimed to determine the level of innovation and factors contributing to low innovation in fast moving consumer goods (FMCG) SMMEs manufacturers, which hinder their economic performance. Mixed approach of quantitative and qualitative questionnaire is used for primary data collection. Sample consists of 120 SMMEs. Statistical Package for Social Sciences (SPSS) (23.0) was employed for data analysis. The study results are presented with figures and diagrams. This study will be a useful tool for general public and relevant stakeholders in this sector.
- Keywords
-
JEL Classification (Paper profile tab)O31, L60, L26
-
References23
-
Tables20
-
Figures0
-
- Table 1. South African government policies
- Table 2. Skills and training to achieve growth
- Table 3. Customers’ loyalty
- Table 4. Innovative features and benefits
- Table 5. Innovative consumer products
- Table 6. Levels of innovation in South African FMCG SMME manufacturers
- Table 7. Importance of innovation in the process of product designing and manufacturing
- Table 8. Creating a tolerant environment for innovation
- Table 9. Lack of financing and skills
- Table10. High costs or complex procedures
- Table 11. Lack of information on the part of employer
- Table 12. Lack of technological know-how
- Table 13. Finance issues
- Table 14. Government laws and regulations issues
- Table 15. Effective supply chain management
- Table 16. Lack of product brand name
- Table 17. Issues of government support
- Table 18. Issue of growth of the SMME industry
- Table 19. Issue of failure in SMME manufacturers
- Table 20. Importance of innovation
-
- Adeniran, T. V. & Kevin, A. . (2012). Investigating the Dynamic Capabilities and Competitive Advantage of South African SMEs. African Journal of Business Management, 6(11), 4088-4099.
- Agupusi, P. (2007). Small Business Development and Poverty Alleviation in Alexander, South Africa. Paper prepared for the second meeting of the society for the study of Economic Inequality, Berlin, July.
- Alessandra, C., Klaciba, H. & Christian, L .B. (2013). On the firm growth and innovation: some new empirical perspectives, using French CIS (1992-2004). Structural change and economic dynamics, 26(1), 14-26.
- Aripov, J. & Hokyun, S. (2014). Factors Influencing e-Commerce adoption in Uzbekistan SMEs. Management Review. An International Journal, 9(2), 1-32.
- Aylin, A., Patrizia, G., Paola, C. & Umit, B. (2013). The Development of SME Managerial Practice for Effective Performance Management. Journal of Small Business and Enterprise Development, 20(1), 28-54.
- Baumack, C. M. (1985). How to operate a small business. 7th edition, Englewood: Cliffs, New Jersey: Pretence- Hall.
- Bessant, J. & Tidd, J. (2007). Innovation and entrepreneurship. Wiley: Chiechester, UK.
- Boysana, M. & Watson, L. (2011). Factors that hinder the growth of small businesses in South African townships. European Business Review, 23(6), 550-560.
- Carneiro, L. M., Cunha, P., Fereira, P. S. & Shamsuzzoha, A. (2013). Conceptual Framework for non-hierachical business networks for complex products design and manufacturing. Procedia, CIRP 7, 61-66.
- Chandra, V., Moorty, L., Nganou, J., Rajaratnam, B. and Schaefer, K. (2001). Constraints to Growth and Employment in South Africa. Report No 2, World Bank.
- Chimucheka, T. (2013). Overview and Performance of the SMMEs sector in South Africa. Mediterranean Journal of Social Sciences, 4(14), 783-795.
- Department of Trade and Industry (DTI). (2012). White paper on National Strategy for the Development and Promotion of Small Business in South Africa. Pretoria Government Publications.
- Malin, L., Kristina, S. & Mats, W. (2014). Manufacturing Strategy Frameworks suitable for SMEs. Journal of Manufacturing Technology Management, 25(1), 7-26.
- Mile, T. (2010). Innovation practice and its performance implications in small and medium enterprises (SMEs) in the manufacturing sector: A Resource- Based view. Strategic Management Journal, 31(1), 892-902.
- Muhammed, H. H., Mohd, N. M. S. & Halim, B. M. L. (2012). Relationship between Entrepreneurial Orientation, Firm Resources, SME Branding and Firm’s Performance: Is Innovation the Missing Link? American Journal of Industrial and Business Management, 2, 153-159.
- Mustapha, U. M. (2010). The Role of Product Design, Manufacturing Systems and Environmental Uncertainty in Nigeria Manufacturing Organizations. Engineering Doctorate (D-Eng).
- Mwarari, M. M. (2013). Factors Influencing Listing of Kenyan SMEs in the Securities Market for Capital Raising Opportunities. European Journal ofManagement Sciences and Economics, 1(2), 99-115.
- Nieman, G., Hough, J. & Niewenhuizen, C. (2003). Entrepreneurship: A South African Perspective, Pretoria: Van Schaik.
- Nieman, G. & Pretorius, M. (2004). Managing Growth: A Guide for entrepreneurs, Cape Town: Juita and co. Ltd.
- Nkonde, S. D. (2012). Information Asymmetry and Obstacles on SMMEs growth in the Rural areas of uThungulu District Municipality of KwaZulu-Natal. M. Commerce, University of Zululand.
- Statistics South Africa. (2012). Statistical release: Quarterly Labour Force Survey, Quarter 1, 2012.
- Terziovski, M. (2010). Innovation practice and its performance implications in small and medium enterprises (SMEs) in the manufacturing sector: a resource-based review. Strategic Management Journal, 31(8), 892-902.
- Van Eeden, S.,Viviers, E. & Venter, D. (2002). The use of selected sources of non-financial assistance by small businesses: A South African Perspective.