Innovative practices and competitive advantage among SMEs: An empirical review

The study investigated the influence of innovative practices on competitive advantage of SMEs in Awka Metropolis, Anambra State, Nigeria. This study is anchored on Diffusion of Innovation Theory (DOI). The study employed correlational research design. The target population of the study are registered SMEs in Awka Metropolis, Anambra State Nigeria. The population of the study which had six hundred and twenty eight (628) owners/managers of SMEs. Primary data was used and was collected using questionnaires. The research instrument was validated using face and content validities. The reliability of the items was tested using Cronbach Alpha. Data collected for this study were analysed using the linear regression analysis in order to determine the relationship between the variables. The study revealed that the association between innovative practices and competitive advantage is unequivocally positive. The study concluded that innovative practices such as technological innovation and marketing innovation are key drivers of sustainable competitive advantage. This study recommended that small and medium enterprises (SMEs) need to continuously monitor and adopt emerging technologies to stay ahead of competition and also SMEs need to harness and invest in digital marketing channels to drive innovation and reach new customers.