Strategic Alliance and the Performance of SMEs in Developing Economies: The Mediating Role of Innovation Strategy

Yakubu Salisu, Lily Julienti Abu Bakar


The importance of innovation in enhancing the performance of business enterprises have been acknowledged and documented in economic literature. However, SMEs find it difficult to innovate due mainly to constraint of resource. Nevertheless through effective strategic alliance with other participants in the market SMEs get access to numerous resources, skills and technique to overcome the challenges affecting their innovativeness and performance. The study presents a conceptual framework depicting the mediating role of innovation strategy on the relationship between strategic alliance and SMEs performance in developing economies. Empirical validation of this model would entail crucial policies implication to policy makers, owner/managers and all other stake holders.


Strategic alliance, innovation strategy, SMEs performance

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