Exploring technological adaptation in the informal economy: A case study of innovations in small and medium enterprises (SMEs) in Zimbabwe

Abstract

Little attention has been given to the processes and factors that facilitate technological adaptation by informal innovators operating in small and medium enterprises in Zimbabwe. This article sought to establish how and why technological adaptation occurs in the informal economy. We conducted observations and 20 in-depth interviews with purposively sampled informal innovators who operate at Mbare Siya So in Harare, Zimbabwe. Thematic analysis was used to analyze the primary data. The findings indicate that the production and marketing techniques of informal innovators are inspired by the need to reduce the cost of agricultural technologies, such as dehullers, and thus meet the purchasing capabilities of small-scale farmers. These informal innovators rely on secrecy and complex innovations as knowledge-management strategies to protect their intellectual property and in the process are able to ward off competition on the local market. Through constant learning and experience these informal innovators have managed to correct the unsuitability of imported Chinese products by manufacturing appropriate agricultural technology that small-scale rural farmers prefer. This study recommends that the informal innovators should register patents to protect their innovations formally.