EFFECT OF INNOVATION STRATEGY ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN KADUNA STATE, NIGERIA

Abstract

The aim of the study is to determine the effect of innovation strategies on the performance of SMEs in Kaduna State. The study employs the survey research design and uses cross-sectional approach of data collection. Krejcie and Morgan (1970) table for determining sample size was used to obtain a sample size of three hundred and thirty-eight (338) owners of SMEs in Kaduna State. Proportional sampling technique was used in selecting the sample size based on the nature of the population. A total of 338 copies of the questionnaire were distributed for data collection, only 305 copies were retrieved for analysis. Data collected were subsequently analysed using multiple regression analysis. Findings from the study established that innovation strategies have a significant and positive effect on SMEs performance in Kaduna State. Process and product innovations exerted the highest effect while organisational innovation have the lowest effect on SMEs performance however, technological innovation shows negative and inconsequential effect on SMEs performance. It was therefore recommended among others that, SMEs owners should overhaul their technological innovation strategy, as the one currently in used are not yielding the desired result hence, they should deploy recent technological equipment that are easy to use, faster and effective in serving their customers.