Impacts of Innovation and Business Analytics on the Performance of the Service Sector in Nigeria

Abstract

The study investigated the impacts of innovation, including service innovation and business analytics adoption on the performance of the service sector in Nigeria between 2013 and 2022. The proportion of Nigeria's economy attributable to the service sector, the Innovation Efficiency Index, and the Business Analytics usage index were all calculated using secondary data drawn from metrics such as the number of service firms engaging in R&D, the total amount of R&D expenditures, and the share of total service sector revenue received via online channels. As a result of multicollinearity and heteroscedasticity, the study used quantitative analysis, including regression and correlation analyses. The results show that innovation and its impact on service quality, has a large impact on Nigeria's service sector, but that the sector's current adoption level of business analytics is too low to produce far-reaching changes in performance. It was further revealed from the study that the e-participation rate is very vital for driving both the adoption of business analytics and the performance of the service sector. According to the study, the adoption of business analytics should be given more attention in the Nigerian service sector so that its contribution to the performance of the sector is more significant. Finally, the scope of e-participation in the service sector is expanding by the day, and it is recommended that various organizations become more e-service driven to compete in today's market and maintain good performance.