A proposal effect of Innovation on MSMEs Performance in Lagos Nigeria

A proposal effect of Innovation on MSMEs Performance in Lagos Nigeria

CHAPTER ONE

Objective of the study

The following objectives will be ascertained;

1. to evaluate the impact of marketing innovation on sales volume of MSMEs in Lagos state
2. to determine the impact of process innovation on sales volume of MSMEs in Lagos state
3. to examine the impact of product innovation on sales volume of SMEs in Lagos state

Related literature

Concept of Innovation

According to Damanpour and Goplakrishnan ( 2001) innovation is the acceptance of any idea or conduct related to a product, service, system, device, policy or program that is new to the adopting organization. Nohria and Gulati (1996) assert that innovation is the inclusion of any policy, program, structure, process or any market or product that a manager perceives to be true. Kuczmarski, Middlebrooks, and Swaddling (2000) view innovation as a new perceived benefit or value to a customer, employee, or shareholder. The new perceived benefit ranges from minimal to massive and may be functional, psychological, emotional, or financial. For example, a process innovation could bring a time-saving benefit to employees. Aliu (2010) assert that innovation is any good service or idea that is perceived by someone as new. Bessant and Tidd (2007) view innovation in the manufacturing sector as the technical, design, manufacturing, management and commercial activities involved in the marketing of a new (or improved) product or the first commercial use of a new (or improved) process or equipment. Kuratko and Hodgetts (2004) assert that innovation is the creation of new wealth or the alteration and enhancement of existing resources to create new wealth. According to Thornhill (2006) innovation is a process of idea creation, a development of an invention and ultimately the introduction of a new product, process or service to the market. Robbins and Coulter (2006) assert that innovation is the process of taking creative ideas and turning them into useful products or work methods. However, innovation is the process of totally undergoing new business activities aside existing practices. Wirtz (2010) indicates that innovation is the development and successful establishment of a technical, organisational, business related, institutional or social solution of a problem, which is perceived as groundbreaking and new, accepted by pertinent users and pursued by innovators in anticipation of an achievement. According to OECD Oslo Manual (2005), four different innovation types are introduced. They are product innovation, process innovation, marketing innovation and organizational innovation.

RESEARCH DESIGN AND METHODOLOGY

The researcher used descriptive research survey design in building up this project work. The choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to the effect of innovation on MSMEs performance in Lagos, Nigeria

METHOD OF DATA ANALYSIS

The researcher will employ oral and direct interview in administering this research questions. Responses from the respondents were needed unlike questionnaires, which is less rewarding due to late receipt and loss of responses from respondents. The method of data analysis that will be used by the researcher is the simple percentage. More so, percentage and degrees of the responses will also be used in the analysis. Here, the ratio of those whose responses were not in the affirmative will be found and conclusions will be drawn there upon.  Representations of the level of responses will be made in tabular form. The Statistical Package for Social Sciences (SPSS) software will be used to test the hypotheses.

References

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