INNOVATIVENESS AND COMPETITIVE ADVANTAGE OF SMALL AND MEDIUM-SIZE ENTERPRISES IN KOGI STATE, NIGERIA

Abstract

This study focused on link innovativeness and Competitive Advantage (CA) of Small and Medium-size Enterprise (SMEs). The study examined the effect of Value Capture Innovation (VCI) on the CA, as well as the effect of VPI on the CA of SMEs in Kogi State. The survey research design was adopted. 255 SMEs were surveyed, but 219 owners/managers eventually became active participants. Multi-stage random sampling technique was adopted. The reliability results showed VCI (α=0.917); and VPI (α=0.776). Multiple Regression analysis was used for testing hypotheses. Descriptive statistics aggregated and characterized the data in a straightforward and clear manner. Finding showed that VCI has significant effect on the CA of SMEs in Kogi State, and that (Value Proposition Innovation (VPI) has significant effect on CA of SMEs. The study concluded that SMEs need to possess innovation capabilities so as to enhance reasonable position in the competitive business environment. The study recommended that SME owners should increase their commitment to VCI so as to achieve sustainable CA for their enterprises, and that SME owners should invest in VPI to create effective medium route towards the achievement of sustainable CA of their enterprises. Key words: innovative activity, competitive advantage, value capture innovation, value proposition innovation, new customer relationships