Abstract

This study assessed the role of innovation on business growth in the CDC Mabanda Estate. The main research question guiding the study was: What is the effect of innovation on business growth in CDC Mabanda Estate?

In line with this, the study addressed three specific research questions: What is the impact of research and development on business growth in CDC Mabanda Estate? What is the impact of creativity on business growth in CDC Mabanda Estate? And what is the impact of digital infrastructure on business growth in CDC Mabanda Estate? Data for the study were collected using structured questionnaires administered to a sample of employees at CDC Mabanda Estate.

The research employed both descriptive and inferential statistical techniques, particularly simple regression analysis, to explore the relationship between innovation and business growth. The findings revealed a direct and positive relationship between innovation and business growth. Creativity and digital infrastructure were found to have strong, positive, and statistically significant effects on business growth.

While research and development showed a negative relationship, its effect on business growth remained statistically significant. Based on the findings, the study recommends that the management of CDC Mabanda Estate should continue to implement various innovation strategies, with a stronger emphasis on creativity and digital infrastructure, while also reviewing and strengthening their research and development efforts to enhance business growth.

 CHAPTER ONE

INTRODUCTION

1.1 Background of the study 

Business growth is the creation and application of new knowledge, leading to the development of innovation products, services and business models Penrose (2009). Schilling (2013), business growth is archived through expanding market share, entering new markets and introducing innovative products that meet changing consumer demands. Over the years, business growth has been affected by many factors; Access to finance remains a significant determinant, as financial constraints can hinder expansion and innovation efforts. Additionally, external challenges such as corruption, inadequate infrastructure, and intense competition can impede business development. Internal factors, including the education and experience of managers and employees, play a crucial role in enhancing business performance. Political and economic environments, encompassing government policies, tax regulations, and economic stability, also profoundly impact business operations and expansion prospects. Among these factors, innovation is a fundamental driver of business growth, as it enhances productivity, fosters new product development, and sustains competitive advantage.

According to Teece (2007), innovation is the ability of firm to interstate, build and reconfigure internal and external competencies to address rapidly changing environments. Zengler (2019) explained innovation as the digital age which involves using emerging technologies like AI, Lot and blockchain to transform business processes, customer interactions and product offering, creating new opportunities for value creation. Binns (2020), highlighted that innovation focuses on sustainability that creat long term value by aligning business objectives with global environment and social goals. Also, Digital innovation enables firms to thrive in the modern, tech driven market place Zengler (2019). Additionally, chesbrough (2003) states that innovation through open eco-systems allow firms to share risk, speed up the development of new products and achieve higher return.

More so, Eric (2011), highlights innovation especially interactive and customer driven, enables business to archive sustainable business models, innovation is the central of sustaining competitive advantage by continuously improving products, services and processes Micheal (1990). However, business that embrace innovation in technological  advancement, help them to remain competitive in digital era and accelerate productivity.

The link between innovation and business growth is crucial in today business landscape. Foss and sclebi (2017) study on model innovation and growth explains that companies that innovate their business models, can explore new revenue streams, tap into previously unreachable customer segments and scale more effectively and contributing to sustainable growth. Research by Binns (2020), indicates that sustainable innovation helps businesses future proof their growth by aligning their products and services with emerging environmental and social concerns, creating new business opportunities and improving brand equity which lead to growth. Again Gary (2015) study on innovation and customer- center growth high lights that innovation that focuses on customer needs lead to higher customer satisfaction, brand loyalty and repeat business which collectively contribute revenue growth and market expansion. Furthermore David (2007) research on dynamic capability, explains that companies that innovate by reconfiguring their capabilities and operations are better positioned to respond to external changes, seize new opportunities and foster sustainable growth over time. However, providing innovative strategies are directly linked to business outcomes that lead to increase productivity and revenue which boost business growth.

Globally, innovation plays a pivotal role in driving business growth by enabling companies to stay competitive, adapt to changing market and meet the evolving need of customers. According to porter (1990), companies that innovate effectively can differentiate their products, improve quality, reduce cost and meet diverse need of global consumers. By innovating, firms create unique value proposition that are difficult for competitors to replicate. As such, Apple brand (smith 2020), has been seen for its constant innovation in product design and technology which has allow it maintain a competitive edge in the global market, driving growth through increased sales and customer loyalty. Also, Teece (2007) study on technological innovation and operational efficiency, explains how technological innovation particularly in areas like automation, data analysis and AI has low operation cost, improved product quality and speed production cycles which allow companies to scale operations globally, enhancing their growth potential. Furthermore, cozzoune (2018) study on digital platforms and eco-system innovation, shift a broader understanding on the importance of digital platforms and eco-systems as it allows businesses to rapidly scale globally, tapping into new user base and leverage the global interconnections of customers, partners and stakeholders. These platforms often become dominant players in their industries. However, innovation is not just a tool for growth, it is a fundamental requirement for survival and success in the global economy.

More so, in developed countries where labour and resources cost are typically high, business rely on innovation to improve productivity and operational efficiency. Robert (2001), stuff on new product development, lay aspect of innovation outline best practices for managing innovative processes with are crucial for businesses in developed countries economies where markets are often saturated, successful product innovation is essential for differentiation, market expansion and continuous business growth. Shih and pisana (2012), research on the role of manufacturing innovation in driving business growth in developed countries, particularly in unites state, they discuss how innovation in manufacturing is crucial for creating high quality, high value products that compete in global markets and contribute to economic expansion. Zott and Amit (2010) explore how businesses model innovation helps firms’ growth by adopting new value, propositions, strategies and approaches. Their research highlights that business in developed countries must make business model innovation a key factor for growth and global competitiveness because of the high competition and market saturation faced by developed economies. Also, Bessant and Tidd (2015) explore the management of innovation and its role in creating sustainable business growth. They argue that business in developed countries must not only innovate but manage their innovation process effectively in rapidly changing environments.

In addition, studies carried out in developing countries highlights the role of innovation in business growth. Cynthia (1995) research on the importance of strategic innovation in overcoming the constraints often faced by business in developing countries. She emphasizes that firm in developing countries must innovate to create competitive advantage, access new market, reduce operational cost, build resilience against economic volitivity and drive growth in resource scarce environment. Furthermore, Audretsch Feldman work focus on how research and development spillover, along with innovation eco- system, can drive growth. Their work is relevant for developing countries, where creating local innovation ecosystem can foster entrepreneurial activity and business growth. Mohammed (2007), emphasis on the importance of social innovation in developing countries by creating business that address social issue and foster inclusive growth. The Grameen bank which Mohammed founded innovated and Microfinance solution that have empowered many of people in developing countries, particularly women to start business thereby lifting them out of poverty. However, innovation in developing economies is not only a tool for economic development but a strategic tool to foster job creating, technology advancement and long-term prosperity.

Meanwhile, Cameroon which is our area has been extensively studied and recognized innovation as a crucial factor to improve competitiveness, productivity that leads to business growth. Researchers such as Ndjoke (2015) , explore how innovation in Cameroon manufacturing sector can lead to business growth by examining barriers to innovation such as outdated technologies and insufficient capital. He suggested that product and process innovation help to local manufacturers in Cameroon increase competitiveness in both domestic and internal market which sustain growth. Medard and Pierre (2016) , investigates the link between innovation and business growth in Cameroon, highlighting the role of technological innovation, entrepreneurship, public and private partnerships in promoting business growth. This authors discuss how businesses in Cameroon can use innovation to enhance productivity, especially in industries like agriculture, manufacturing and service can utilize local resources and technological innovationto growth and compete in regional and global market. Samson and Samuel (2015) explore how technological innovation in the agricultural sector of Cameroon can boost productivity and business growth. This study identifies key barriers to innovation in sectors such as lack of access to financing and suggest solutions to foster growth like the digital tool, mobile technology and agricultural innovation. Eugene (2018), examine show innovative solution in the energy sector of Cameroon can drive business growth focusing on renewable energy and energy access innovation. The study emphasizes how energy innovation can reduce operational cost and improve business productivity in both urban and rural areas. Despite facing challenges like limited and market access, Cameroonian business can harness innovation to improve productivity, create competitive advantages in both local and global market.

Moreover, Innovation has been instrumental in driving business growth within the Cameroon Development Corporation CDC Mabanda estate, which was created in the year 1954.Evere(1962) diffusion of innovation theory examine how new ideas are spread within the Mabanda Estate, where traditional methods have adapted to new practices and how employees and local communities accept the implementation of new Agriculture technologies such as, high crop yield varieties which is essential for business growth. Aghion and Howitts endogenous growth theory, focuses on innovation as an internal process within the CDC Mabanda Estate underscores the need for continuous innovation such as, developing drought resistant, crop varieties or optimizing water use, which are crucial for sustainable growth. The CDC Mabanda Estate has encountered several challenges impacting it growth and operations such as the one ongoing Anglophone crisis in Cameroon in the south West region has led to an increase insecurity which has resulted to shutting down of key estates, disrupting production and affecting livelihood of workers. Also, following the end of British rule, the CDC Mabanda estate face economic challenges including suspension of commonwealth funding and cancellation of trade preferences, which has affected the corporation’s financial stability and operational capacity. Despite the challenges the CDC Mabanda estate has demonstrated resilience through innovative strategies and structural adjustment, ensuring continued contributions to the National economy and business growth.

Lastly, we have controversies that surround the role of innovation in business growth often arising from different opinions about its impact effectiveness and practical implementation. Innovation is often seen as a high risk and high reward endeavor, that is the financial investment required for research and development, testing market launch can lead to significant financial losses especially if the innovation fails to gain market function. Also there is a growing belief that business must embrace digital transformation and technology innovation to stay competitive, it was argued that technological innovation is not always the solution especially business in non-technical sector where access to technology may be limited. On the other hand, advocating for innovation in sustainable business can drive growth while adopting environmentally friendly solutions.

1.2 Statement of the problem  

Globally, companies have their growth as their priority, though the maintenance has remained the challenge all over the world. Hill (2014) Emphasizes that different regulations and intellectual property laws between countries present significant obstacles to global business operation growth and innovation.

The process of archiving business growth through innovation in global world is of with challenges including high costs, market uncertainty, cultural difference, legal complexity and technological integration hinders Businesses from fully utilizing their growth potential in the global marketplace as such a deeper understanding of these challenges is crucial for developing innovative strategies that can foster successful business growth on a global scale.

Additionally, in developed countries, businesses face unique set of challenges when attempting to achieve growth in the global market. Cascio (2006), emphasis that talent shortages in specific high skill areas are barriers for company looking to innovate and scale their operations globally. Hill (2014), emphasis how Business in developed economies is burdened by strict regulations which while necessary for consumers protection can stifle growth by increasing complexity. Addressing this problem requires strategic planning and adaptation to technological shifts and navigating the complexity of global competition and regulatory environment to sustain long term growth.

Furthermore, developing countries Like Africa, and Asia face challenges when attempting to achieve growth. Cascio (2001) explain that shortage in specific high skill areas limited capacity of business to sustain growth. Van (2001) discussed the negative impact of the digital device, noting that business in developing countries often lack access to the technological tools necessary for innovation and scale globally.

Collinson (2012), highlighted intellectual property law in developing countries which business may be less inclined to invest in new technologies and innovation reducing growth potential. Despite these challenges the potential for growth through innovation in developing countries remain high provided that businesses can navigate their constrain and leverage local advantage. addressing this issue is essential for businesses in developing world to unlock the full potential of innovation and achieve sustainable growth in global market place.

Meanwhile, Cameroon like many developing countries Which is our main area of focus faces unique challenges in achieving business growth. Ghenema (2001) explains that poor infrastructure including electricity Internet and transportation creates a barrier to business growth and innovation in Cameroon. Hill (2014) highlighted complex regulatory processes coupled with corruption making it challenging for businesses to innovate and grow. Addressing these challenges and others such as limited infrastructure, regulatory inefficiency and lack of funding, businesses can compete more effectively in regional and global market.

Nevertheless, the challenge is more pronounced in Cameroon development cooperation, CDC Mabanda estate which has impacted its growth. The social political crisis in Cameroon Anglophone region has disrupted agricultural activities leading to decreased production and financial losses. Also, the global market fluctuation and internal economic constraint has affected its profitability and sustainability of CDC cooperation.

However, to address these challenges and promote business growth through innovation strategies like adoption of modern agricultural technologies, diversification of product, and market, strengthening research and development, which is considered as a key tool to improve business growth.

Despite the crucial role of innovation in business growth, controversies surrounding the role of innovation in business growth in CDC Mabanda estate have raised concern about their impact on business growth. Due to the controversies that exist like over emphasis on technology, patent abuse, imbalance of power, uncertain Roi, environmental risk, this research seeks to answer the following research questions.

1.3 Research Questions

1.3.1 The Main Research Question

What is the effect of innovation on business growth in CDC Mabanda estate?

1.3.2 Specific Research Questions 

1. What is the impact of Research and development on business growth in CDC Mabanda Estate?
2. What is the impact of Creativity on business Growth in CDC Mabanda Estate?
3. What is the impact of digital infrastructure on business growth in CDC Mabanda Estate?

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