SME PERFORMANCE AND JOB CREATION IN SUB-SAHARAN AFRICA: THE ROLE OF DIGITAL INNOVATION

Abstract

This study investigates the relationship between Digital innovation, SME performance, and Job creation in Sub-Saharan Africa (SSA). It examined how SME performance mediates the relationship between digital innovation and job creation. Using data obtained from 655 SMEs in SSA, we discovered that digital innovation has the potential to help SMEs create jobs and enhance performance. Our analysis confirmed the mediating role of SME performance in the relationship between digital innovation and job creation; we found that digital innovation is significantly associated with improved performance, enhancing their capacity for job creation. This study contributes to the literature by presenting empirical evidence on the role of digital innovation in job creation and SME performance and the mediating role of SME performance in the relationship between digital innovation and job creation.