Abstract

The economic importance of small and medium-sized enterprises (SMEs) and entrepreneurship has increased significantly in recent decades but also entrepreneurial activity and SMEs are deemed vital to economic progress. So that, it is justifiable to study how small firms and entrepreneurs can enhance their product innovation success and achieve sustainable competitive advantages. As Mulu and Pierre (2011) finding, local and non-local knowledge linkages, whereas, Giuliani (2013) business and knowledge networks effect on firm innovation and found positive effect of business and knowledge networks on firm innovation. Hence, the main objective of this study is to assess the effects of network ties on product innovation success of SMEs in Ethiopia. A Triangulation method (qualitative, quantitative, case study and descriptive) was employed in the investigation. Instruments used to collect data were Pre-test, post-test, interviews and questionnaires.