IMPACT OF INNOVATION ON SMALL AND MEDIUM SIZED ENTERPRISES’ PERFROMANCE IN ABUJA, NIGERIA
Abstract
ABSTRACT
This study examines the effect of product, process, and marketing innovations on the performance of small and medium enterprises (SMEs) in Nigeria. Using a survey of 176 SMEs drawn from a sample of 391, data were analyzed with SPSS to test the hypothesized relationships. The results reveal that product innovation exerts the strongest positive influence on SME performance, followed by marketing innovation, while process innovation, though positive, has a comparatively weaker effect. The findings support Schumpeter’s innovation theory, the Resource-Based View (RBV), Diffusion of Innovation (DOI), and the Dynamic Capabilities View (DCV), highlighting innovation as a strategic driver of competitiveness and growth in resource-constrained environments. The study concludes that SMEs can enhance sales, market share, and profitability by prioritizing new product development, adopting creative marketing strategies, and improving processes. Recommendations include increased investment in innovation capabilities, policy support for SME innovation, and stronger knowledge-sharing platforms.
Keywords: Product innovation, Process innovation, Marketing innovation, SME Performance.
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