Nexus Between Business Ecosystem and Micro, Small and Medium Enterprises Performance

Abstract

Business ecosystems play a crucial role in shaping the performance of micro, small, and medium enterprises (MSMEs). Through enhanced innovation, social networks, and collaboration, MSMEs can harness these dynamics to gain competitive advantages, leading to improved performance and sustainable growth. The study examined the relationship between business ecosystem and micro, small and medium enterprises (MSMES) performance. A sample size of 260 was determined with Taro Yamane’s sample size determination. However, 247 responses were valid and used for the data analyses, with the Pearson Product Moment correlation inferential statistical tool. Findings showed a significant relationship between business ecosystem and innovation within MSMEs (r = 0.620, N = 247, p < 0.05). Results obtained also revealed that there is a significant relationship between business ecosystem and innovation within MSMEs (r = 0.620, N = 247, p < 0.05), while the same variability of data points amongst the variables were indicated and revealed that there is a significant relationship between MSMEs with effective social networks and business ecosystem (r = 0.646, N = 247, p < 0.05). Finally, the correlation of coefficient obtained with p-value < 0.05 revealed a significant relationship between collaboration improved MSME growth and performance (r = 0.99, N = 247, p < 0.05). The study therefore concluded that a robust business ecosystem, effective social networks, and strategic collaboration are crucial for driving MSME innovation, growth, and competitive advantage. The study recommended that MSMEs should engage in business ecosystems to access resources, networks, and collaboration opportunities. This enhances innovation, operational efficiency, and strategic positioning, allowing them to stay competitive and drive business growth.