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The Effect of Informal Food Service Operators’ Capabilities on Their Performance in Nigeria

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  • Funke Tawakalitu Adedeji

    (African Institute for Science Policy and Innovation, Obafemi Awolowo University, Ile-Ife 220005, Nigeria)

  • Kehinde Taiwo

    (Food Science and Technology Department, Obafemi Awolowo University, Ile-Ife 220005, Nigeria)

  • Abiodun Isaac Oyebola

    (African Institute for Science Policy and Innovation, Obafemi Awolowo University, Ile-Ife 220005, Nigeria)

  • Oyebisi Olaleye Oyewole

    (African Institute for Science Policy and Innovation, Obafemi Awolowo University, Ile-Ife 220005, Nigeria)

  • Christiana Kappo-Abidemi

    (School of Development Studies, University of Mpumalanga, Mbombela 1200, South Africa)

Abstract

Technology has become crucial for businesses of all scales, enhancing operational efficiency, customer experience, and overall performance. While many formal businesses have embraced technology, small and informal businesses, particularly in rural areas, often struggle with adoption due to resource constraints. This study examines the impact of technological capability (TC) on the performance of informal food service operators (IFO) in southwestern Nigeria. This study employed a quantitative approach whereby a closed-ended questionnaire was administered to 180 IFOs across different LGAs in Oyo State to elicit information about the effect of their activities on performance indicators. The response rate was 93.8%. Data was analyzed using a binary logistic regression model. Findings revealed that the innovation capability (β—1.657; p —0.003*) and production capability (β—3.276; p —0.009*) of the IFOs significantly influenced their sales turnover and profit level is influenced by innovation capability (β—1.657; p —0.013*), investment capability (β—2.013; p —0.004*) and linkage capability (β—2.716; p —0.003*) within the study area. The study recommends that there should be strong linkages between the operators and technology-providing organisations to enhance their innovation capability.

Suggested Citation

  • Funke Tawakalitu Adedeji & Kehinde Taiwo & Abiodun Isaac Oyebola & Oyebisi Olaleye Oyewole & Christiana Kappo-Abidemi, 2024. "The Effect of Informal Food Service Operators’ Capabilities on Their Performance in Nigeria," Businesses, MDPI, vol. 4(4), pages 1-11, December.
    • Handle: RePEc:gam:jbusin:v:4:y:2024:i:4:p:44-822:d:1534330
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    References listed on IDEAS

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    1. Abeysinghe, Dhammika & Paul, H., 2005. "Privatization and technological capability development in the telecommunications sector: a case study of Sri Lanka Telecom," Technology in Society, Elsevier, vol. 27(4), pages 487-516.
    2. Michael A. Hitt & R. Duane Ireland & S. Michael Camp & Donald L. Sexton, 2001. "Strategic entrepreneurship: entrepreneurial strategies for wealth creation," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 479-491, June.
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