Title: Effect of creativity and innovation based training on small enterprises' performance: evidence from Ethiopia

Authors: Arega Shumetie; Wondifraw Mihret

Addresses: College of Business and Economics, Debre Markos University, Debre Markos, +251-269, Ethiopia ' College of Social Sciences and Humanities, Debre Markos University, Debre Markos, +251-269, Ethiopia

Abstract: Development policy makers stipulate directives to capacitate human capital vital to surmount challenges, unlock potentials and enhance competitiveness. This study analysed the effect of evolutionary process of creativity and innovation based technical vocational education and training (TVET) on small enterprises' (SEs') performance. It adds insights to innovation theory signifying how far evolutionary creativity trainings attribute to performance. Propensity score matching and causal inference econometric model analyses of the data collected from randomly selected 146 manufacturing SEs revealed that creativity and innovation strategies are partially harnessed in everyday practices of trained enterprises. Insignificant differences were observed between trained and untrained SEs in creative thinking, motivation, innovative practices and searching for opportunities. Different from the slight effect of short-term trainings, program-based trainings significantly affected capital and asset accumulation. Thus, intensifying the quality and scope of trainings should be prioritised to sustain creativity and innovation for human resource and performance development.

Keywords: creativity; innovation; enterprises; TVET strategy; business performance.

DOI: 10.1504/IJISD.2020.110497

International Journal of Innovation and Sustainable Development, 2020 Vol.14 No.4, pp.375 - 396

Received: 15 Feb 2018
Accepted: 20 Feb 2019
Published online: 22 Oct 2020 *

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