Innovation Practices: Catalyst for SMEs Performance in Anambra State, Nigeria

Purpose: The shortfall of innovation practices among SMEs in Anambra State necessitated this study. The study aimed to investigate the influence of innovation practices on the performance of Small and Medium Scale Enterprises in the selected SMEs from different sectors in Anambra State. Methodology: Cross-sectional research design was adopted by the study. The population of the study consisted of 15 selected SMEs from different sectors totaling one thousand eight hundred and sixty (1860) management and workers of the selected SMEs in Anambra State. A sample size of 300 was determined using Krejcie and Morgan (1970) formula. For the purpose of this study, the primary source of data (questionnaire), which was subjected to both validity and reliability was utilized. Both descriptive and inferential statistics were adopted in data analysis and the hypotheses were tested at a 5% level of significance. Findings: The study revealed from the analysis that product innovation has a statistically positive relationship with customer satisfaction (r = .847; P-value < 0.05) and between process innovation and customer retention (r = .813; P-value < 0.05). Also revealed was technological innovation has a statistically significant influence on competitive advantage (r = .769; P-value < 0.05) and that marketing innovation has a statistically significant influence on brand awareness (r = .790; P-value < 0.05). It was concluded that innovation practices have a significant relationship with performance of SMEs. Unique Contribution to Theory, Practice and Policy: The study advocated that creative and quality on product innovations need to be maintained continuously to develop appropriate product continually and increase the customer satisfaction. SMEs need to be passionate about incorporating technological innovation qualities that will assist employee performance to delivers satisfaction to their customers through technological innovation that will keep attracting new customers and retaining customers through employee performance. Also, more investment need to be made in research and development to be able to innovate more and adopt more innovative strategies to improve their market innovation.