Impact of Entrepreneurial Activities on Organisational Innovativeness of Small and Medium Enterprises (SMEs) in Osun State, Nigeria

Abstract

Purpose. The entrepreneurial activity has requirements that distinguish it from other professional activities, especially managerial activities and other requirements associated with recognizing business opportunities and engaging in innovative activity. Meanwhile, Entrepreneurial activities have been identified in the literature as drivers of SMEs’ growth and development. The study determined the mechanisms by which entrepreneurial activities impact the organisational innovativeness of Small and Medium Enterprises (SMEs) in Osun State, Nigeria. Design/Methodology/Approach. This study adopted a survey research design. The population of this study consisted of three thousand and seven (3007) Owners/Managers of registered SMEs in Osun State, Nigeria. The sample size of three hundred and fifty-three (353) for the study was arrived at using the Taro Yamane formula for sample size. This study employed a simple random sampling technique for the selection of respondents across all the three senatorial districts in Osun State. The primary data used for the analyses were collected from the respondents through the use of a structured questionnaire, and responses were analysed using descriptive and inferential statistics. Finding and Implication. Two hypotheses were proposed and tested. The first hypothesis revealed a significant impact of creativity at (R2 = 0. 982, β = 0.1.004, t = 90.701, p< 0.05) on SMEs organisational innovativeness and the second hypothesis revealed a significant impact of knowledge transfer at (R2 = 0.993, β = 0.1.012, t = 144.459, p< 0.05) on organisational innovativeness. Therefore, policymakers may be encouraged to develop and support policies that promote a creative culture and facilitate knowledge-sharing mechanisms among SMEs. Limitations. The study focuses only on entrepreneurs’ creativity, without recognizing the employee creativity. The study was also constrained by the cross-sectional and singlerespondent nature of the study. Originality. The claim about measuring performance with organisational innovativeness remains unclear to SMEs in Nigeria because most of the researches were carried out among large enterprises.