EVALUATING THE IMPACT OF INNOVATIVE CULTURE ON THEDEVELOPMENT OF BAKING INDUSTRIES IN NASARAWA STATE

Abstract

This study examined the impact of innovative culture on the development of baking industries
in Nasarawa State, Nigeria, focusing on product and process innovation. Drawing on Rogers’
Diffusion of Innovations Theory, the study adopted a survey research design, collecting data
from 148 usable responses out of 154 distributed questionnaires to registered bakeries,
representing a 96.1% valid response rate. Data were analyzed using Partial Least Squares
Structural Equation Modelling (PLS-SEM) via Smart PLS software. Findings indicated that
innovative culture significantly drives baking industry development, with product innovation (β
= 0.901, p < 0.001) demonstrating a stronger effect than process innovation (β = 0.082, p <
0.05). Theoretically, the study reinforces the role of innovation diffusion in small and medium
enterprises (SMEs), while practically, it suggests that bakery operators can achieve higher
profitability, competitiveness, and customer satisfaction by prioritizing product innovation
alongside process improvements. Despite its contributions, the study is limited to registered
bakeries in Nasarawa State, highlighting the need for future research to explore informal and
rural baking enterprises. The study’s novelty lies in its focus on the interplay between
innovative culture and both product and process innovation in the Nigerian baking sector,
providing actionable insights for policymakers to foster SME development through supportive
innovation policies.