STRATEGIC THINKING ON INNOVATION PERFORMANCE: ROLE OFTECHNOLOGICAL CHANGE

Abstract

This study investigates the influence of strategic thinking on innovation performance of Small
and Medium Enterprises (SMEs) in Nigeria, with a focus on Sunseed Nigeria Limited in
Zaria. It further explores the moderating role of technological change in this relationship.
Innovation performance, a key driver of competitiveness, is hindered in many SMEs due to
inadequate strategic orientation and limited technological adoption. The research employs a
cross-sectional survey design, utilizing Structural Equation Modeling (SEM) to analyze data
from 278 respondents within Sunseed Nigeria. The results indicate that strategic thinking,
particularly organizational awareness, significantly enhances innovation performance.
Technological change, however, moderates this relationship negatively when its pace
surpasses the firm's capacity to adapt strategically. This suggests that while technological
advancements offer opportunities for innovation, they may overwhelm SMEs with limited
resources and readiness. The study contributes to the understanding of how SMEs can
balance strategically with technological adaptation to sustain long-term innovation. It also
highlights the need for tailored technological readiness programs and strategic agility to
better direct rapid changes in the business environment. Future research should explore
other dimensions of strategic thinking and investigate the role of digital infrastructure in
supporting innovation in dynamic sectors.