The effect of innovation orientation on firm performance: evidence from micro and small manufacturing firms in selected towns of Awi Zone, Ethiopia

Abstract Innovation in micro and small enterprises is widely regarded as one of the most important sources sustainable competitive advantage with an embedded purpose performance improvement increasingly changing environment. This study aimed to examine effect innovation on manufacturing firms selected towns Awi Zone, Amhara, Ethiopia. The target population was 643 Injibara, Dangila, Tilili; a number provided by zone enterprise development office data during 2021. Data were drawn from sample 247 using cross-sectional primary collected wood metal Zone. adopted descriptive explanatory designs used correlation multiple linear regression analysis estimate firm performance. results revealed that product, process, marketing organizational positively significantly related performance, while product found have strong positive dependent variable followed process innovation, respectively. However, weak statistical relationship reported between than other variables. Hence, which orientation towards better area.