Abstract

This study investigates the Impact of Innovation on organisational productivity at MTN, Buea Cameroon. The main objective of this research is to examine how innovation influences the productivity of the organisation. Data for the study was collected using structured questionnaires administered to 44 employees at MTN Buea. Both descriptive and inferential statistical methods, including simple regression analysis, were utilized to analyze the data.

The findings of the study indicate a significant positive relationship between innovation and organisational productivity at MTN, Buea. The study recommends that MTN, Buea should prioritize implementing innovative strategies, including process innovation and digital transformation, as these have a high positive and significant impact on organizational productivity.

 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Organizational productivity is a critical measure of success for any institution, encompassing the efficiency and effectiveness with which it achieves its objectives. According to Ngum (2020), organizational productivity reflects the ability of a firm to optimize resources, enhance service delivery, and maintain competitiveness. This concept is particularly vital in industries such as telecommunications, where productivity metrics directly influence market share and customer satisfaction. Foster et al. (2021) said, productivity growth is increasingly linked to the adoption of innovative technologies, which enable firms to optimize resource allocation and enhance service delivery. According to Nguyen et al. (2022), organizational productivity is closely tied to continuous innovation, which not only streamlines business processes but also boosts the overall productivity of firms. By embracing innovation, organizations can improve their resource utilization, respond to market demands more effectively, and maintain a competitive edge, ultimately driving higher productivity levels. As businesses navigate a dynamic and competitive environment, innovation has become indispensable for improving productivity and ensuring long-term success.

Innovation is the implementation of creative ideas in order to generate value, usually through increased efficiency, improved productivity, or new market opportunities.  Tidd & Bessant (2018). Kahn (2018) describes innovation from three perspectives: as a mindset, a process, and an outcome. As a mindset, it fosters a culture of continuous improvement within an organization. As a process, it involves structured stages discovery, development, and delivery (PDMA, 2015). Finally, as an outcome, innovation manifests in new products, services, or methodologies aimed at increasing efficiency and competitiveness. Schumpeter (1934) originally identified innovation as a catalyst for economic transformation, a view that remains relevant today. According to Kuratko et al. (2014), successful organizations embed innovation into their core strategy to ensure sustainability in competitive markets. In the telecommunications sector, innovation is particularly critical, driving advancements in digital technology, service delivery, and customer engagement. Research highlights that firms embracing digital innovations achieve higher operational efficiency, reduced costs, and improved customer satisfaction (Kahn, 2018).

The relationship between innovation and organizational productivity is extensively documented. Ebot and Ngafeeson (2019) argue that innovation enhances market productivity by optimizing operational workflows. Supporting this, a study by Dyer, Gregerson, and Christensen (2011) found that innovative firms tend to outperform their competitors by integrating five key skills: associating, questioning, observing, networking, and experimenting. Empirical studies from various regions further validate this connection. For instance, research in Scandinavian companies found that artificial intelligence (AI) innovations significantly improve digital transformation processes, leading to better decision-making and higher productivity (Technological Forecasting and Social Change, 2021). Similarly, a study on technological innovation in China’s labor market revealed that digital advancements boost employment opportunities while also reshaping traditional job structures (Technology in Society, 2022) Given these insights, it is evident that innovation is not just a means to remain competitive but a necessity for organizations seeking long-term success. Whether through technology, business models, or customer engagement strategies, innovation continues to redefine productivity and efficiency across industries worldwide.

Globally, the relationship between innovation and productivity has become a focal point for organizations and economies alike. Numerous studies, including those by Damanpour and Nair (2021) discussed the link between organizational innovation and productivity in their recent works. They emphasize that innovation plays a significant role in increasing organizational productivity by streamlining processes, enhancing efficiencies, and optimizing resource allocation. This view aligns with the findings of other researchers who have similarly identified innovation as a primary factor for driving productivity improvements within organizations. In addition, recent research by Akinboade & Adeola (2022), Jensen et al. (2022), and Okpara & Kabongo (2021) emphasizes the importance of technological adoption in enhancing productivity. Further studies by Tushman and O’Reilly (2019) and Lopez et al. (2022) also assert that organizations continuously investing in digital innovation experience higher productivity levels, ensuring sustainable growth and long-term competitiveness. The consistent findings across these studies underline the importance of innovation as a key enabler of growth and long-term success for organizations globally.

In developed countries, where technological infrastructure is well-established, innovation has proven to be a direct driver of productivity. For instance, recent studies such as those by Wessner (2019) and Gervais et al (2022) have emphasized the significant role that advanced technological infrastructure plays in boosting productivity. They assert that innovation, particularly in industries like telecommunications, drives productivity growth by improving operational efficiencies, reducing costs, and fostering competitive advantages. These innovations, including the widespread adoption of digital platforms, automation, and artificial intelligence, have redefined traditional business models, enabling firms to enhance both their service quality and customer experience. According to Kwon et al. (2021), the integration of new technologies such as cloud computing and big data analytics has streamlined business operations and led to substantial gains in productivity within the service sector. For organizations in developed economies, the constant push for technological adoption is now seen as crucial for maintaining competitiveness in global markets, as failure to innovate risks stagnation and market loss.

In developing countries, however, the adoption of innovation as a means to boost productivity faces significant challenges. Nwankwo (2020) highlighted that limited resources, inadequate infrastructure, and regulatory barriers often impede the ability of organizations in low-income economies to fully embrace innovation. Similarly, research by Popp and Madsen (2021) found that financial constraints and insufficient access to modern technologies restrict the growth potential of businesses in developing nations. These challenges are compounded by a lack of skilled labour, which hinders the effective implementation of innovative practices and technologies (Khan & Shabbir, 2022). While innovation has the potential to drive productivity in these regions, its implementation is often slow due to these structural barriers. Despite these challenges, the importance of innovation in fostering productivity growth is increasingly recognized. A study by Adama et al. (2021) showed that even within constrained environments, targeted innovation efforts, particularly in digital technologies, are beginning to show positive effects on organizational efficiency. However, the pace of adoption remains slower compared to developed nations, leading to disparities in productivity levels across different regions of the world.

In Buea, the situation reflects the broader challenges faced by many developing nations. With limited technological advancements and infrastructural constraints, the country’s productivity levels in various sectors, including telecommunications, have been slow to grow (Ngu, 2021). However, companies like MTN Buea have demonstrated that innovation, even in resource-constrained environments, can significantly enhance organizational productivity. By leveraging mobile technology, digital solutions, and innovative business models, MTN Buea has managed to improve service delivery, operational efficiency, and customer satisfaction, thereby establishing itself as a leader in the telecommunications sector in the country. This trend is echoed by recent studies that highlight the role of digital transformation in emerging economies. For example, Diongo et al. (2022) argue that mobile telecommunication providers in sub-Saharan Africa, such as MTN, have become key drivers of economic development through the adoption of innovative technologies, helping to boost productivity in underserved markets.

Similarly, Ngapmong et al. (2023) found that digital innovations in Africa, particularly in mobile services, have contributed to significant improvements in service delivery and customer engagement, showing that even with limited resources, innovation can create sustainable competitive advantages. In addition, Christensen’s (1997) theory of disruptive innovation supports this trend, showing how simple, affordable innovations can transform entire industries in emerging economies. This highlights the potential for innovation to drive productivity improvements in emerging markets like Buea, despite existing limitations.

MTN Buea serves as a compelling case study for examining the impact of innovation on organizational productivity. As one of the leading telecommunications providers in the country, MTN has implemented various innovative strategies to improve customer satisfaction and market competitiveness. According to Fon and Ebot (2023), MTN’s adoption of digital solutions, such as mobile money and enhanced data services, has significantly boosted its productivity and market share. Similarly, Ngu (2021) emphasized that MTN’s integration of mobile technology and digital platforms has helped streamline service delivery, thus driving increased operational efficiency. Furthermore, recent studies by Titi et al. (2022) show that the introduction of innovative business models, such as mobile money services, has transformed the telecommunications sector in Buea, making it a key player in economic growth. By investigating how these innovations have influenced MTN’s organizational outcomes, this study aims to provide valuable insights into the role of innovation in driving productivity in the Buea ian context.

However, there are controversies surrounding the role of innovation in productivity. While many researchers agree on the positive impact of innovation, others argue that excessive focus on technological advancements can lead to job displacement and increased operational complexity (Smith, 2018). Additionally, some studies, such as by Ayo and Kalu (2020), suggest that innovation’s impact on productivity varies by industry and may not always yield immediate benefits. In developing countries like Buea, critics argue that innovation is often limited to superficial improvements rather than transformative changes due to infrastructural and financial constraints (Mba, 2021; Ngu, 2021). Recent research by Olowu et al. (2023) further supports the view that in low-resource settings, innovation efforts are often hindered by inadequate technological infrastructure, preventing organizations from realizing the full potential of innovative initiatives. Despite these debates, the necessity of innovation in driving productivity remains undeniable, especially in competitive sectors like telecommunications (Kouadio, 2022).

1.2 Statement of the Problem

Organizations face numerous challenges in their quest to boost productivity. This is primarily because many lack innovative practices or rely on outdated methods that fail to address contemporary demands. Globally, organizational productivity remains a significant challenge as firms strive to optimize resource allocation and enhance operational efficiency. A study by González et al. (2020) emphasizes that inefficiencies in processes and lack of proper technological infrastructure are primary barriers to productivity growth. In many cases, organizations are constrained by outdated systems, inadequate training, and lack of strategic planning. This challenge is particularly evident in industries such as telecommunications, where rapid technological advances demand continuous innovation. As a result, companies unable to adapt to these changes face the risk of stagnation and reduced market competitiveness (Adams & Gálvez, 2021). Therefore, addressing productivity problems through innovative approaches has become imperative for long-term success, especially in sectors marked by high customer expectations and constant market changes.

Developed countries benefit from advanced technological infrastructure and supportive policies that foster innovation. Freeman and Soete (1997) argue that firms in these regions experience higher productivity levels due to their ability to invest in research and development, adopt cutting-edge technologies, and implement efficient operational processes. Similarly, Schumpeter (2017) emphasizes that innovation-driven economies sustain competitive advantages by continuously evolving their technological capabilities and market strategies. However, even in developed economies, the rapid pace of technological change creates challenges for organizations to continuously innovate and maintain productivity gains.

In developing countries, the situation is compounded by limited access to resources, inadequate infrastructure, and a lack of skilled personnel. According to Nwankwo (2020), many organizations in low-income economies struggle to adopt innovative practices due to financial and technological constraints. This limits their ability to improve productivity and compete on a global scale. For instance, in African countries, including Buea, organizations face significant challenges in integrating modern technologies into their operations, resulting in inefficiencies and reduced productivity. As Amankwah-Amoah and Hinson (2019) note, the slow pace of digital transformation in many African economies is further hindered by regulatory barriers and weak institutional support, making it difficult for businesses to leverage technological advancements effectively.

In Buea, organizational productivity remains a pressing issue. Despite efforts to enhance productivity, many firms struggle to achieve sustained growth due to inadequate innovation practices (Ngu, 2021). Factors such as limited funding, poor infrastructure, and low technological adoption hinder the productivity of organizations in both the public and private sectors. According to Tchamyou (2022), the lack of investment in digital transformation further exacerbates inefficiencies, making it difficult for firms to compete in an increasingly technology-driven market. The telecommunications industry, in particular, faces challenges in meeting the demands of a rapidly growing customer base while maintaining efficiency and competitiveness.

MTN Buea, as one of the leading telecommunications providers in the country, provides a relevant case study for understanding the challenges of organizational productivity. While MTN has implemented innovative strategies such as mobile money and digital services, these efforts often face limitations due to external factors like regulatory hurdles and infrastructural deficiencies (Fon & Ebot, 2023). Additionally, high operational costs, inconsistent internet connectivity, and cybersecurity concerns further complicate the company’s ability to optimize productivity (Ngwa & Tabe, 2023). As a result, the company must continuously adapt its practices to maintain productivity and meet market demands, leveraging strategic partnerships and technological advancements to navigate these challenges.

However, there are controversies regarding the relationship between innovation and productivity. While some scholars, such as Schumpeter (1934), emphasize the transformative impact of innovation on productivity, others argue that its effects are not always straightforward. Smith (2018) contends that innovation can sometimes lead to job displacement and operational complexities, especially in developing countries where resources are scarce. Additionally, Ayo and Kalu (2020) note that the benefits of innovation may take time to materialize, leading to skepticism about its immediate impact on productivity. Despite these debates, it is clear that fostering innovation remains essential for improving organizational productivity, particularly in industries like telecommunications where competition is intense.

1.3 Research Questions

1.3.1 Main Research Question

What is the effect of innovation on organizational productivity in MTN Buea?

1.3.2 Specific Research Questions

1. i What is the influence of creativity on organizational productivity in Buea?
2. ii To what extent does research influence organizational productivity at MTN Buea?
3. iii What is the impact of digitalization strategies on organizational productivity in MTN Buea?

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