Alabi, Ezekiel1 Amusat, W. A2 Olatunji3, O. P. & Olaoye, B. O4.
1Business Administration Department, University of Ilesa, Ilesa, Osun State ezekiel_alabi@unilesa.edu.ng 08054084234
2&4Business Administration and Management Department, Osun State Polytechnic, Iree.
Abstract
Despite being widely recognized as essential for the growth and survival of firms in competitive markets, the link between innovation and the performance of small-scale enterprises (SSEs) remains a debated topic in empirical research. This study examines the impact of innovation on the performance of selected manufacturing SSEs in Ibadan metropolis, Oyo State, Nigeria. Data were collected via a structured questionnaire from 380 SSEs across various subsectors, including textile/leather/apparel, footwear, wood/furniture, woodworks, and domestic/industrial plastic and rubber, chosen from a total of 6,039 SSEs registered with the Oyo State Ministry of Commerce and Industry. The data were analyzed using SPSS version 23, employing both descriptive and multiple regression analyses. The results reveal that different types of innovation (product, 0.839; process, 0.692; marketing, 0.581; organizational, 0.472) significantly impact SSE performance. Collectively, these innovations account for 58.4% of competitive advantage, efficiency improvements, and sales growth, thereby promoting overall success and sustainability. The study recommends that stakeholders identify and address barriers and enablers specific to each type of innovation, determine best practices for each sector, and create tailored support programs to boost innovation capabilities and performance in the local manufacturing industry.
Keywords: Marketing innovation, organisational innovation, process innovation, product innovation.