The Effect of Innovation Capability on Competitiveness

As Nations can compete only if their firms can compete, this research study sought to examine the enabling factors to innovation capabilities for Rwandan manufacturing sector to support sustainable competitiveness in the enlarged African market. Using a sample size of 106 small and medium manufacturing companies in Rwanda, a descripto-correlational design in a positivism philosophy was adopted. A structural equation modeling analysis was used to analyze collected data. The model proposed in this study helped to explain the overall relationship and found a positive and significant influence of innovation capabilities on competitiveness of manufacturing companies in Rwanda. The findings revealed that for innovation to exist in a firm it is necessary to consider both external and internal environment as driving forces to understand its innovative potential and continue its innovative activity. These findings support further the fact that innovation capability is an important driving force behind firm competitiveness and should be developed as an integral part of business culture. For more information, don't hesitate to read the book...