Innovation and performance of microenterprises during crisis and post-crisis periods: a comparative analysis in a fragile economy

Abstract

The COVID-19 crisis triggered a rapid reconfiguration of entrepreneurial activities worldwide. In Chad, where microenterprises constitute the backbone of the economy and operate under severe resource constraints, innovation emerged as an important adaptation mechanism. This study pursues two objectives: (1) to examine the relationship between innovation practices and the performance of Chadian microenterprises, and (2) to compare these dynamics during and after the COVID-19 crisis. Using a quantitative approach, data were collected through a questionnaire administered to 386 microentrepreneurs, most of whom operate in the informal sector. Regression analyses and mean comparison tests indicate that innovation, particularly in its frugal forms, was positively associated with performance during both periods. The findings also reveal a performance paradox: performance was higher during the crisis but declined in the post-crisis period despite an increase in innovation intensity. This pattern suggests that crisis-period performance partly reflected temporary market conditions and adaptive resilience rather than durable competitive advantages. Overall, the results highlight the adaptive capacity of Chadian microenterprises in a context of severe constraints. The study concludes by discussing managerial and policy implications aimed at strengthening innovation capabilities and long-term resilience.