Effect of technological innovation capabilities on the performance of selected manufacturing small and medium enterprises in Lagos State

Abstract

Background: The issue of technological adoption and innovation in businesses as always been a big problem to organizations, especially manufacturing small and medium enterprises (SMEs) in Lagos state, Nigeria. The emphasis has therefore always been on how to adopt new technologies and innovations in improving and scaling profit or the profitability heights in businesses or SMEs. Methods: The main purpose of this research work is to have an understanding of the effect of technological innovation capabilities on the performance of selected manufacturing SMEs in Lagos State. This research work made use of a descriptive and causal research design as well as survey methods to examine whether technological learning capability affects the profitability of selected manufacturing SMEs in Lagos State and to determine whether resource allocation capability promotes sales growth amongst these manufacturing SMEs. Results: Findings showed that research and development capability have a significant impact on the value creation of selected manufacturing SMEs in Lagos. The research concluded that technological innovation capabilities have a positive impact on the performance of selected manufacturing SMEs in Lagos. In addition, the study recommended that manufacturing SMEs in Lagos, Nigeria, Africa and the globe should implement technological learning and the use of technology in their production process. Lastly, this research recommended that future research should focus on SMEs in other geopolitical zones or states.