Factors Determining the Innovative Ability of Manufacturing Small and Medium Enterprises in Nigeria.

Abstract

This study examined the relationship between innovative ability of manufacturing small and medium enterprises (SMEs) and some determinants of innovation in Nigeria. The study was based on a sample survey consisting of 100 SMEs in the manufacturing sector in the cities of Lagos and Ibadan, southwestern part of Nigeria. Using structured questionnaires, the data were collected from the owner-managers of the SMEs. The findings indicate that there was a significant relationship between innovative ability and the determinants relating to entrepreneur\'s characteristics. These determinants were entrepreneur commitment to innovation, and seeking and gathering support for innovation within the organisation. These determinants were able to explain 57% of the variance in the innovative ability of respondents. The result of the study shows that one of the critical factors to innovative ability among the manufacturing SMEs will be a positive disposition of the entrepreneur to build an enduring environment, particularly within the organization, that will help to nurture and sustain innovation.

IFE PsychologIA Vol. 16 (1) 2007: pp. 56-71