Exploring the Role of Innovation on Economic Performance of Manufacturing Firm in Nigeria
Journal Title: Journal of Economics, Finance and Management Studies - Year 2025, Vol 8, Issue 01
Abstract
The survival of any business in the current competitive state of industries worldwide directly affects its competitiveness, which is linked with innovativeness in the previous literature. Despite its significance, numerous manufacturing firms face challenges such as limited technological progress, insufficient R&D efforts, and a strategic management shortage that encourages creativity and innovation. As a result, this study aims to explore the role of the resultant influence of innovativeness on the economic performance of manufacturing firms in Southwest Nigeria. The study was anchored on the Resource-Based View (RBV) theory. A descriptive research design was adopted for the study. The study's population comprised all the manufacturing firms in Southwest Nigeria, totalling 10,807. The study sample consisted of three hundred eighty-five (385) respondents using Yamane’s (1973) sample size formula. A multi-stage sampling technique was adopted in the study. The data collected were analysed using descriptive and inferential statistics. It was found that the introduction of new internal processes has a significant effect on the increase in revenue of manufacturing businesses (R-value=0.563; P0.05). Also, the introduction of new or substantially improved products or services has a significant impact on the enhancement of the productivity of manufacturing businesses (R-value of 0.327; P0.05). Lastly, introducing new internal processes significantly influences the increase in the market share of manufacturing businesses (R-value=0.481; P0.05). It was concluded that innovativeness plays a crucial role in internal processes and product offerings in driving the growth and competitive edge of manufacturing enterprises in the region. Consequently, promoting an environment that encourages continuous improvement and innovation is essential for sustained economic success and market leadership in the manufacturing sector of Southwest Nigeria. Therefore, manufacturers should be more proactive in introducing new products and services; they should always embark on product research and produce new and innovative products and services to promote their business productivity and performance.
Authors and Affiliations
Olumuyiwa Oladapo Fasanmi, PhD , Adeniyi Bolaji Comfort , Oyenuga Michael Oyedele,
Keywords
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- EP ID EP756390
- DOI 10.47191/jefms/v8-i1-67
- Views 5
- Downloads 0
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