Performance Perspectives for Small and Medium Enterprises in Cameroon: Innovation and ICTs

Abstract This paper studies the combined effects of innovation and information and communication technologies (ICT) on the performance of Small and Medium Enterprises (SMEs). To do this, it uses data from the «General survey of Companies in Cameroon», conducted on 93,969 companies by the National Institute of Statistics (NIS). Of the 93,969 companies surveyed, only 8035 enterprises were questioned according to the synthesis report published in 2010 by the NIS. From this sample, this study extracts innovative SMEs and applies a multiple regression model to assess the direct effects of innovative activities and the use of ICT on SME performance. The econometric analysis shows that: ICT helps to increase SME performance by supporting innovation through the acquisition of new software and hardware equipment. Thus, innovation accompanied by the firm’s use of ICT has a significant effect on performance since Software and Machinery Acquisition related to technological innovations contribute to the firm’s productivity. However, the degree to which the use of ICTs is rooted in the company can accelerate the innovation process and, in the same way, improve firm performance in terms of cost reduction and rationalisation of processes.