Resource Allocation and Management Innovation among Entrepreneurs in South Sudan: A Case Study of Small and Medium Enterprises in Juba City

Abstract

Management innovation among SMEs in South Sudan has been termed as low despite the high failure rate of the enterprises. This is despite the argument that management innovation enhances survival rate of enterprises and creates competitive advantage. This therefore triggered an investigation to find out if allocation of resources influences management innovation. The study population consisted of all the small and medium enterprises operating in Juba City which were 12,654 in total. The study adopted descriptive research design. A sample size of 96 SMEs was determined using Cochran formula. Primary data was collected using a self-administered questionnaire. The questionnaire was structured, having only closed-ended questions. The collected data was analysed through quantitative methods of descriptive and inferential statistics such as correlation and univariate regression model. The tool used was Statistical Package for Social Sciences version 24. The study established that resource allocation has a positive and significant effect on management innovation of SMEs in Juba City. The recommendations of the study were that SMEs in Juba City should enhance their resource allocation practices such as encouraging innovative behavior to promote management innovation, measuring performance against subjective strategic criteria such as progress on product innovations and investing in technological resources such as IT infrastructure in order to enhance the rate of management innovation.