PRODUCT/SERVICE INNOVATION AND VENTURE PERFORMANCE OF SMALL AND MEDIUM-SCALE VENTURES IN SOUTH-SOUTH GEO-POLITICAL ZONE, NIGERIA
Abstract
ABSTRACT
This study examines the impact of product/service innovation on the performance of small and medium-scale ventures (SMEs) in the South-South Geo-political zone of Nigeria. Grounded in the Resource Based Theory (RBT) and Investment Theory of Creativity, the study focuses on the relationship between innovation dimensions—product/service innovation—and venture performance indicators—financial performance, market performance, and operational performance. Utilizing a correlational research design, the study targets a population of 2,223 registered food and beverage manufacturing SMEs in the South-South zone, sampling 339 SMEs through purposive sampling and employing Taro Yamane's formula for sample size determination. Data were collected via structured questionnaires and analyzed using frequency tables, means, standard deviations, and Spearman Rank Correlation to test the hypotheses. The findings indicate a significant positive relationship between product/service innovation and financial performance, market performance, and operational performance of SMEs in the South-South zone. The study concludes that innovation is a critical driver of SME performance, emphasizing the need for continuous development of new products, enhancement of existing products, and exploration of new market opportunities. Recommendations include encouraging SMEs to adopt innovative practices to boost their performance and competitiveness in the market.
Key words: Product and service innovation, venture performance, financial performance, market performance, operational performance
