EKSU Journal of the Management Scientists

Innovative Capability and Small and Medium-Sized Enterprises Performance in Selected Local Government Areas in Ogun State, Nigeria

Abstract

Small and Medium-Sized Enterprises (SMEs) contribute to every nation’s success by boosting government revenue and enhance economic growth. Regrettably, the success of their operations in Nigeria is affected due to their failure to innovate. As a result, the study empirically investigate the effect of innovative capabilities on SMEs performance in Abeokuta, Ogun State, Nigeria. The target population comprised SME owners operating in Abeokuta North and Abeokuta South Local Government Areas. Power analysis was used to determine the sample size of 365 respondents chosen using a multi-stage sampling technique. Data were obtained using copies of a validated questionnaire. The data collected were analyzed using Covariance-Based Structural Equation Modeling (CB-SEM). The study’s findings revealed that process, product, marketing, and organizational innovation showed a significant positive effect on SMEs’ performance in the selected local government areas of Ogun State, Nigeria. The findings implication is that the study cannot generalize the outcome of this study across all other local government in Ogun State. The study concludes that innovative capability influences SMEs' performance in selected local government areas in Ogun State, Nigeria. The study recommend that SME owners ensure that innovation is regarded as a top-most priority, i.e., an essential motivation for their business success