Influence of Innovation on Performance of Small and Medium-Sized Enterprises in Kinshasa City

Introduction:This study investigates the influence of innovation on the performance of small and medium-sized enterprises (SMEs) in Kinshasa City. In an increasingly competitive business environment, innovation is considered a critical driver of efficiency, growth, and sustainability. Despite the recognized importance of SMEs in economic development, limited empirical evidence exists on how innovation affects their performance within the Kinshasa context, thus necessitating this research. Methodology:The study adopted a descriptive research design targeting 290 SMEs, with 1,643 respondents comprising directors, chief executive officers, financial managers, and marketing managers. A stratified random sampling technique, guided by the Taro Yamane formula, yielded a sample size of 322 respondents. Data were collected using structured questionnaires administered both electronically and physically. Descriptive and inferential statistical analyses were employed, with results presented in tabular form. A regression model was used to examine the relationship between innovation and SME performance. Findings:The results revealed that innovation has a positive and statistically significant effect on SME performance. The regression analysis produced an R² value of 0.399, indicating that 39.9% of the variation in performance is explained by innovation. Additionally, the model was statistically significant (F = 189.685, p < 0.05), and the beta coefficient (β = 0.612, p = 0.000) confirmed a strong positive relationship between innovation and performance. Conclusion:The study concludes that innovation is a key determinant of SME competitiveness and growth in Kinshasa City. It recommends increased investment in innovative practices and supportive policy frameworks to enhance SME performance.