The impact of technological innovation on SME's profitability in Nigeria

Akinwale, Yusuf Opeyemi; Adepoju, Adeyemi Oluwaseun; Olomu, Michael Oluwaseun

doi:10.1504/ijric.2017.082299

Cited by 20 publications

(11 citation statements)

References 5 publications

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“…The results indicate that the technological innovation has a significant positive effect on the business performance of Latin American family SMEs. In addition, (Akinwale et al , 2017) examined the impact of research and development (R&D) expenditure, product and process innovations on SMEs performance in the manufacturing industry in Nigeria using a survey of 1,000 SMEs. Their results with the least squares method showed that R&D spending by the firms as well as product and process innovation has significant impacts on the firm's performance.…”

Section: Innovation and Performance In Small And Medium Enterprises: A Literature Reviewmentioning

confidence: 99%

Innovation and small and medium enterprises’ performance in Cameroon

Ndzana

Onomo

Mvogo

et al. 2021

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PurposeThis article attempts to explain performance through the development of innovations within small and medium enterprises (SMEs). Specifically, the authors analyse the determinants of innovation and assess the role of technological and non-technological innovations in performance.Design/methodology/approachBased on a sample of 508 Cameroonian SMEs, the PSM (propensity score matching) technique was used to reduce the selection bias inherent in this type of analysis.FindingsThe results show that technological innovation does not influence significantly the performance of SMEs, whereas non-technological innovation positively influences it. The combination of these two types of innovation leads to better performance than even accentuated development of only one type.Practical implicationsTo improve the performance of SMEs, it is necessary to adopt a comprehensive innovation policy that combines non-technological and technological innovations. In addition, it is important to intensify informations and communication technologies (ICT) promotion policies that contribute to the adoption of innovations within enterprises.Originality/valueThis paper contributes to the literature by showing the role of technological and non-technological innovations in explaining the performance of SMEs. Moreover, unlike the existing work in sub-Saharan Africa, which is limited to testing the innovation–performance relationship, this study also determines the productivity gain generated by innovative firms compared to non-innovative ones.

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Section: Innovation and Performance In Small And Medium Enterprises: A Literature Reviewmentioning

confidence: 99%

Innovation and small and medium enterprises’ performance in Cameroon

Ndzana

Onomo

Mvogo

et al. 2021

JSBED

View full text Add to dashboard Cite

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“…Therefore, innovation becomes an arrow that drives productivity in all sectors of the economy (Kim 2011). Innovation is traditionally viewed as taking place mostly within a single firm (Akinwale, Adepoju & Olomu 2017;Chesbrough 2003b). However, it has become a vital element in today's globalised and competitive environment (Mytelka 2000).…”

Section: Introductionmentioning

confidence: 99%

“…Although the majority of firms in developing countries, Nigeria in particular, are SMEs and are characterised by limited human and financial capabilities, their extent of adopting innovation to drive financial performance is not negligible (Adeyeye et al 2015). The level of in-house R&D capabilities and the extent of interactions of the knowledge institutions with some SMEs in the manufacturing and service sectors may generally be inadequate and low, yet these firms continue to strive to bolster their profits through innovations (Adeyeye, Jegede & Akinwale 2013;Akinwale et al 2017;Egbetokun, Adeniyi & Siyanbola 2012;Siyanbola et al 2012). …”

Section: Introductionmentioning

confidence: 99%

Empirical analysis of inbound open innovation and SMEs performance: Evidence from oil and gas industry

Akinwale

2018

SAJEMS

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Background: This article contributes to existing literature by examining the relationship between inbound open innovation and firms’ financial performance in the Nigerian oil and gas industry. Aim: This article seeks to identify the factors of inbound open innovation and whether these factors influence the financial performance of small and medium-sized enterprises (SMEs) in the Nigerian oil and gas industry. Setting: This article examines 150 indigenous oil and gas SMEs in the upstream subsector of the Nigerian petroleum sector through a survey, using a questionnaire, conducted in 2015. Methods: The study applied the structural equation modelling (SEM) method. This method is used to test the relationships between the factors and to calculate the measurement errors in the hypotheses formulated. Results: The results show that technology scouting, vertical technology collaboration (VTC) and horizontal technology collaboration (HTC) positively and significantly contribute to inbound open innovation, which are thus significant in influencing the financial performance of SMEs. The size of technical staff and research and development (R&D) fund allocations also have a positive and significant correlation with the SMEs’ financial performance. Meanwhile, the age of SMEs is negative and not significant in influencing financial performance. Conclusion: The results suggest that inbound open innovation through scouting, HTC and VTC should therefore be encouraged among SMEs to boost their internal capabilities, which have hitherto enhanced their financial performance. The management members of each SME should continually consider collaboration with the external actors because they cannot singularly possess all the innovative skills required in the industry. Also, each firm should commit itself to allocate more funds to R&D and at the same time should hire those who have relevant production skills and train the existing ones in their firms.

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“…Business organisations are looking for competitive advantage, and innovation creation or adoption at a firm-level provides an essential competitive advantage to the firm (Akinwale, Adepoju & Olomu, 2017). Innovation is the key to the progress of the business firm and critical to remain competitive.…”

Section: Introductionmentioning

confidence: 99%

OWNER-MANAGER CHARACTERISTICS INFLUENCE ON THE SMEs INNOVATION ORIENTATION OF SMEs: A LITERATURE EXPLORATION

Daneji

Shavarebi

Yap

2019

IJIREV

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The firm’s involvement in innovation became a necessary attribute for firms to remain competitive and successful. However, innovation is still considered a hallmark of large firms only. The literature on SME's involvement in innovation is scant and needs further exploration regarding the innovation process in the SME firms. This paper aims to hint the gap of knowledge related to the association between the owner-manager characteristics and innovation orientation at the SMEs. A review of relevant literature was exhausted for the achievement of the study objective. The findings of the study highlight that to fully explore the innovation process at the SME level, there is a need to divide the innovation concept into innovation creation and innovation adoption as two discrete concepts effected by the owner-manager personal characteristics. Literature hints at these two conceptualizations of the innovation among SMEs, but empirical examination is non-existence. Therefore, this work recommends future research endeavors to empirically examining the direction and strength of the relationship between owner-manager characteristics and SME's innovation performance in terms of creation and adoption. Moreover, literature and policy direction can be drawn from the respective research activities.

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The impact of technological innovation on SME's profitability in Nigeria

Cited by 20 publications

References 5 publications

Innovation and small and medium enterprises’ performance in Cameroon

Innovation and small and medium enterprises’ performance in Cameroon

Empirical analysis of inbound open innovation and SMEs performance: Evidence from oil and gas industry

OWNER-MANAGER CHARACTERISTICS INFLUENCE ON THE SMEs INNOVATION ORIENTATION OF SMEs: A LITERATURE EXPLORATION

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