Innovation management and how it enhances competitiveness of SMEs: liquor retailers in Ekurhuleni Municipality

Abstract

The purpose of this research was to investigate innovation management and how it could enhance the competitiveness of SME liquor retailers’ in the Ekurhuleni Metropolitan Municipality. The research was prompted by the contributions and role of these SMEs in the creation of jobs for mostly previously disempowered communities, particularly in the black townships of South Africa. The study focused on how the owner or manager of an SME liquor retailer, who is also the leader of the enterprise, applies innovation management to enhance competitiveness. The study adopted a qualitative research design approach, supported by exploratory, descriptive, and analytic elements. The semi-structured interview mode of inquiry was applied to obtain data from 21 purposively sampled SME liquor retail owners and managers. The data obtained from the participants were thematically analysed in order to develop a framework from the findings of this research. The findings indicate that managers and owners of SME liquor retailers do not deploy any formal innovation management framework or processes when developing and implementing new ways of conducting their business. Furthermore, this research concurs that the deployment of a formal innovation management framework is imperative for the enhancement of the competitiveness of SMEs in the liquor retail sector. In this regard, an innovation management framework for the management of innovative processes to enhance competitiveness was recommended to owners and managers of the liquor retail industry. This is important, especially for the liquor retail sector where competition remains the major challenge to managers due to customers’ ease of access to switch amongst competitors.