DETERMINANTS OF INNOVATIVE WORK BEHAVIOR OF EMPLOYEES IN SMEs THE CASE OF SELECTED TOWNS OF GURAGE ZONE

Abstract

The aim of this study was to investigate determinates of innovative work behavior of employees in Small and Medium Enterprises in the case of selected towns of Gurage Zone. The study employed descriptive and explanatory research design along with quantitative and qualitative approaches. Simple random, proportionate stratified and purposive sampling techniques were used. The target population was employees working in Small and Medium Enterprises of Gurage Zone. 364 employees of SMEs, 3 heads and 15 employees from Trade and Industry Development office from the three towns and 15 managers/owners of Somewhere participated in the study. Primary data were collected using self – administered questionnaire and interview. Descriptive statistics, Pearson correlation coefficients, multiple linear regression analyses were used to analyze the quantitative data using a Statistical Package for Social Sciences (SPSS) version 26. However, qualitative data analysis was analyzed using inductive approach. The findings of the study revealed positive and significant relationship between co – workers support, work place happiness, perceived organizational support, external work contacts and transformational leadership with innovative work behavior of employees. On the other hand, the multiple linear regression analysis result also indicated that those five determinant factors have positive and significant effect on employees‟ innovative behavior and 74.7% of the variations in the employees‟ innovative behaviour in the SMEs were jointly accounted by the five predictor variables, of these variables, transformational leadership has the greatest contribution for the innovative behaviour of employees. Therefore, the study concludes that the five determinant factors have significant effect and decisive for the improvement of employees in their innovative work behavior in most of the enterprises. Hence, this study suggests that SMEs and the concerned bodies have to give attention on the development of employees‟ innovative behavior and better to arrange ways so that employees to have continuous innovative behavior development.