Product innovation and performance in Agrofood small and medium-sized enterprises

Abstract

In a context where innovation is crucial for the competitiveness of small and medium-sized enterprises (SMEs), this article examines the impact of product innovation on the performance of agro-food SMEs in Togo. Adopting a qualitative approach based on semi-structured interviews with 30 SMEs, the research reveals that innovation, although incremental, plays a key role in improving production, customer loyalty, and access to new markets. However, obstacles such as financial constraints and limited access to technology hinder their capacity to innovate. Drawing on resource-based and effectuation theories, the study offers a nuanced perspective on the links between innovation and performance, integrating organizational and financial dimensions. The findings highlight the importance of customer feedback, adaptive innovation, and organizational well-being as essential levers for enhancing the competitiveness and growth of Togolese SMEs. This work invites deeper reflection on strategies to support innovation in developing economies, offering practical recommendations for local and institutional stakeholders.

Classification: D22

Paper type:  Empirical Research