Innovation 2021; 2(1): 1-10 http://www.sciencepublishinggroup.com/j/innov doi: 10.11648/j.innov.20210201.12 Service Innovation and Service Quality Effects on Marketing Performance of SMEs Collins Kankam-Kwarteng 1 , Francis Amo 1 , Francis Osei 1 , Daniel Opoku Bediako 2 1 Department of Marketing, School of Business, Kumasi Technical University, Kumasi, Ghana 2 Department of Commercial, L’oreal West Africa, Takoradi, Ghana Email address: To cite this article: Collins Kankam-Kwarteng, Francis Amo, Francis Osei, Daniel Opoku Bediako. Service Innovation and Service Quality Effects on Marketing Performance of SMEs. Innovation. Vol. 2, No. 1, 2021, pp. 1-10. doi: 10.11648/j.innov.20210201.12 Received: February 25, 2021; Accepted: March 22, 2021; Published: April 7, 2021 Abstract: Purpose: The purpose of this paper was to examine the relationship between service innovation, service quality and marketing performance of SMEs in Ghana. Methods: Data were obtained from 164 SMEs in the Kumasi metropolis of Ghana through a structured questionnaire. Convenience sampling techniques was used to select respondents. The paths of the relationships were estimated and tested using t-values and coefficient weights. The study made use of Statistical Package for Social Science (SPSS version 21) and AMOS in conducting the analysis. Results: The study found that service innovation has significant positive influence on marketing performance of SMEs. Service quality was also found to significantly influence marketing performance of SMEs. The results also showed that relationship between service innovation and service quality was positive. Research limitations/implications– This research has several managerial implications based on the results of the descriptive estimates and the inferential results. Future research should estimate relationships between service innovation, service quality, and marketing performances in other developing economies to expand understanding of the interactive effects of service quality and service innovative on marketing performance of SMEs and support in providing more insights into how its implementation will impact on overall marketing performance. Originality: Based on the research findings the study has added to the continuous research in the area of performance of SMEs, specifically marketing performance. This paper would be significant to service innovation and service quality dimensions in the operations of SMEs. Keywords: Service Innovation, Service Quality, Marketing Performance, SMEs 1. Introduction In both developing and emerging economies of the world, legislatures at the local, regional and national governments’ levels have been looking at the critical contribution of SMEs to their economies [64, 71, 75]. Critical to the survival of the SMEs is their ability to achieve higher business performance levels. Studies on SMEs performance have argued on the use of financial and non-financial indicators as measuring tools. The inconclusive nature of the argument in literature results from the numerous attributes that are used to predict firm performance. Management researchers like, Vargo et al, Atuahene-Gima, and Sampson have demonstrated that the ability to innovate and constantly providing quality of service can determine the outcome of business performance [82, 11, 72]. Issues relating to innovation of small firms has received attention in management research. In Ghana, the trend of innovation as found by some researchers has been as a result of the many challenges that restrain SMEs’ ability to innovate. Asiedu, and Miles, explain that SMEs, significantly, do not have enough resources to compete with large organizations [10, 57]. Schilling and Werr [77] found that among the advantages most SMEs have is that they can be easily established and in terms of technology and capital; management and even utilities are not as required as in large companies as a result, the small business sector is the most prevailing system of business, accounting for 92% of firms in Ghana [1]. SMEs play a vital role in economic growth, even as they are key for creating employment in many other developing countries [45]. Therefore, the long run of the Ghanaian economy largely rests on the success of SMEs as in many other emerging nations. The Government of Ghana has