Leveraging Innovation for SME Growth in Anambra State
Keywords:
Innovation, Performance, Brand Awareness, Customer Satisfaction, Competitive AdvantageAbstract
The lack of innovation practices among SMEs in Anambra State prompted this study. This study investigates the impact of innovation practices on the performance of Small and Medium Scale Enterprises in various sectors within Anambra State.The study employed a cross-sectional research design. The study population comprised 15 selected SMEs from various sectors, totaling 1,860 management and workers from these SMEs in Anambra State. A sample size of 300 was calculated utilizing the formula established by Krejcie and Morgan (1970). This study utilized a primary data source, specifically a questionnaire, which underwent assessments for both validity and reliability. Descriptive and inferential statistics were utilized in data analysis, with hypotheses tested at a 5% significance level.The analysis indicated that product innovation is positively correlated with customer satisfaction (r = .847; P-value < 0.05) and that process innovation is positively correlated with customer retention (r = .813; P-value < 0.05). Technological innovation significantly influences competitive advantage (r = .769; P-value < 0.05), while marketing innovation significantly affects brand awareness (r = .790; P-value < 0.05). The study concluded that there is a significant relationship between innovation practices and the performance of SMEs.
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