Novation and Performance Of Retail Small To Medium Enterprises In Harare Metropolitan Province Zimbabwe

Abstract

The integration of innovation into various aspects of society and the economy has the potential to transform industries and re-define business models. The study aims at assessing effects of innovation and the performance of retail Small to Medium Enterprises (SMEs) in Harare Metropolitan Province. The study is guided by Pragmatism Research Philosophy. Structured questionnaires and structured interview guides were used to collect quantitative and qualitative data from 60 respondents. Quantitative data were analysed using descriptive statistics and correlations while qualitative data were analysed using NVivo. The main study findings establish that there is a positive relationship between innovation and performance of retail SMEs. Study findings show that innovation promotes the adoption of advanced technologies within the retail sector. This includes technologies such as artificial intelligence (AI), big data analytics, the Internet of Things (IoT) and cloud computing. These technologies can enhance the efficiency and effectiveness of retail operations, streamline supply chains, improve customer experience and support data-driven decision-making. The study also reveals that innovation optimises retail operations and improves efficiency. By automating manual processes and integrating systems, SMEs reduce costs, minimise errors and enhance productivity. For instance, adopting inventory management systems and point of sale (POS) solutions can streamline inventory control, reduce stock outs and improve overall operational performance. The recommendations proffered by the study is that government should provide the necessary support such as digital skills training and favourable policies that enhance retail SMEs productivity.