Effects of Entrepreneurial Innovation Dimensions on Firm Productivity: Evidence from Selected SMES in Lagos State, Nigeria

Abstract

Adoption of entrepreneurial innovation is strategic to the survival of any Small and Medium-sized Enterprises (SMEs). This study examined the effects of entrepreneurial innovation dimensions on the SMEs’ productivity in Lagos State. The study adopted cross-sectional survey research design. The population comprised 42,067 owners/managers of SMEs in Lagos State. A sample size of 495 was determined using Cochran’s formula. Simple random sampling technique was employed to select the respondents. A structured and validated questionnaire was used for data collection. The reliability’s test yielded Cronbach’s alpha for the constructs ranging from 0.716 to 0.879. The response rate was approximately 83%. The hypothesis was tested using multiple linear regression statistics at 5% level of significance. The findings revealed 
that entrepreneurial innovation had significant effects on SMEs’ productivity (Adj.R2= 0.58, F (4,398) = 140.88, p<0.05). The study provided evidence for positive and statistically significant relationships between product, process and marketing innovations as predictors and SMEs productivity as the outcome. However, similar evidence could not be found when organisational innovation was factored in as a predictor of SMEs productivity in Lagos State. Recommendations were thus given 
towards utilising entrepreneurial innovation as an important tool in promoting the growth and development of SMEs in Lagos State in order to improve productivity and boost profitability in an ever-changing business environment.

Keywords:  management innovation, marketing innovation, process innovation, 
product innovation, productivity.