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Innovation in Nigerian SMEs: types and impact

Author

Listed:
  • Egbetokun, A
  • Siyanbola, W
  • Olamade, O
  • Adeniyi, A
  • Irefin, I

Abstract

This paper seeks to explore the types of innovation that are predominant in SMEs in developing countries and to investigate the impact of these innovations on different dimensions of firm performance based on an industry-wide innovation survey carried out in Nigeria in 2007. Although innovation is important for superior firm performance, our result found that the type of innovation that SMEs pursue is not a critical consideration in their performance. While there was no difference found in the focus of SMEs on either of product or process innovations, evidence showed that SMEs would focus more on incremental product and process innovations. Incremental innovation was found to be very important for Nigerian SMEs and a significant predictor of product quality and not of revenue. The authors conclude that SMEs chooses to pursue such innovations that most fit their strategies and available resources. Such level of innovation affords Nigerian SMEs to more extensively exploit the domestic market but cannot support extensive new product development required to enter export markets.

Suggested Citation

  • Egbetokun, A & Siyanbola, W & Olamade, O & Adeniyi, A & Irefin, I, 2008. "Innovation in Nigerian SMEs: types and impact," MPRA Paper 25338, University Library of Munich, Germany, revised 2008.
    • Handle: RePEc:pra:mprapa:25338
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    File URL: https://mpra.ub.uni-muenchen.de/25338/3/MPRA_paper_25338.pdf
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    References listed on IDEAS

    as
    1. Goedhuys, Micheline, 2007. "The impact of innovation activities on productivity and firm growth: evidence from Brazil," MERIT Working Papers 2007-002, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Kanter, Rosabeth, 1985. "Supporting innovation and venture development in established companies," Journal of Business Venturing, Elsevier, vol. 1(1), pages 47-60.
    3. Jason Henderson, 2002. "Building the rural economy with high-growth entrepreneurs," Economic Review, Federal Reserve Bank of Kansas City, vol. 87(Q III), pages 45-70.
    4. M.H. Bala Subrahmanya, 2006. "Technological innovations in Indian Small and Medium Enterprises (SMEs) sector: does firm size matter?," International Journal of Innovation and Learning, Inderscience Enterprises Ltd, vol. 3(5), pages 499-517.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Stephen Oduro, 2019. "Impact of Innovation Types on SMEs’ Performance in the Cape Coast Metropolis of Ghana," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 5(2), pages 110-127, July.
    2. Fakhrul Anwar Zainol & Wan Norhayate Wan Daud & Lawan Shamsu Abubakar & Hasnizam Shaar & Hazianti Abd Halim, 2018. "A Linkage between Entrepreneurial Leadership and SMEs Performance: An Integrated Review," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(4), pages 104-118, April.

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    More about this item

    Keywords

    innovation; small and medium enterprises; Nigeria; impact;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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