PROCESS INNOVATION AND VENTURE PERFORMANCE OF SMALL AND MEDIUM-SCALE VENTURES IN SOUTH-SOUTH GEO-POLITICAL ZONE, NIGERIA
Abstract
ABSTRACT
This study examined the relationship between process innovation and organizational performance of small and medium-scale enterprises (SMEs) in the South-South Geo-political zone of Nigeria. Grounded in the Resource Based Theory (RBT), this research explored how process/technology innovation impacts financial, market, and operational performance. The study adopted a correlational research design, targeting a population of 2,223 registered food and beverage manufacturing SMEs. Using the Taro Yamane formula, a sample size of 339 SMEs was determined and selected through purposive sampling. Data collection was conducted via a structured questionnaire, with subsequent analysis involving descriptive statistics and Spearman Rank Correlation to test the hypotheses. The findings revealed significant positive relationships between process/technology innovation and financial performance (r=0.602, p<0.05), market performance (r=0.479, p<0.05), and operational performance (r=0.633, p<0.05) of SMEs. The study concluded that process innovation is a critical driver of enhanced performance in SMEs. Recommendations included investing in advanced technologies, continuous development of new products, and adopting innovative strategies to improve efficiency and market competitiveness.
Key words: Process innovation, venture performance, financial performance, market performance, operational performance
