ORGANIZATIONAL INNOVATION AND VENTURE PERFORMANCE OF SMALL AND MEDIUM-SCALE VENTURES IN SOUTH-SOUTH GEO-POLITICAL ZONE, NIGERIA
Abstract
ABSTRACT
This study explored the relationship between organizational innovation and the performance of small and medium-scale enterprises (SMEs) in the South-South Geo-political zone of Nigeria. The investigation was guided by the Resource-Based View (RBV) Theory, the Investment Theory of Creativity, and the Componential Theory of Creativity. The dimensions of organizational innovation examined included product innovation, process innovation, and marketing innovation, while the performance metrics considered were financial performance, market performance, and operational performance. A correlational research design was utilized, targeting a population of 2,223 registered food and beverage manufacturing SMEs in the South-South zone. A sample of 339 SMEs was selected through purposive sampling, as determined by the Taro-Yamane formula. Data were collected using structured questionnaires and analyzed with frequency tables, means, standard deviations, and Spearman Rank Correlation. The results indicated a significant positive relationship between organizational innovation and financial performance, market performance, and operational performance of SMEs in the region. Specifically, it was found that innovative practices significantly enhance profitability, market presence, and operational efficiency. The study concluded that embracing organizational innovation is crucial for the sustainable performance and competitiveness of SMEs. It recommended that SME owners and managers should actively pursue innovative strategies, including the adoption of new technologies, development of new products, and improvement of business processes to boost performance.
Key words: Organizational innovation, venture performance, financial performance, market performance, operational performance
