The Effect of Technology and Product Innovation on SMEs Performance through Balanced Scorecard: Government Programs as Intervening in Addis Ababa, Ethiopia

Abstract

This study examines the Effect of Technology and Product Innovation on SMEs' Performance through the Balanced Scorecard Government Programs as an intervention in Addis Ababa, Ethiopia. 431 SME owners and managers in Addis Ababa took part in a quantitative, cross-sectional survey design that collected primary data using multi-stage sampling, systematic random sampling, and standardized, closed-ended questions. SPSS Version 26 was used to analyze the data for descriptive and inferential statistics. The hypothesized relationships were investigated using AMOS software Version 26, which enables structural equation modeling
(SEM). The findings show that both technological and product improvements considerably boost corporate performance (β = 0.395, p < 0.001 and β = 0.428, p < 0.001, respectively), with government support acting as a stimulant that largely mediates these interactions. This study offers a comprehensive understanding of performance and innovation in a developing economy
by combining perspectives from the Resource-Based View, Innovation Diffusion Theory, Stakeholder Theory, and the Balanced Scorecard. Future studies should concentrate on qualitative insights, industry-specific subtleties, and long-term consequences in order to gain a deeper understanding of the contextual elements impacting innovation. This will give policymakers and SME management practical advice on how to organize focused support systems to encourage sustainable growth.