MODERATING ROLE OF ORGANIZATIONAL CULTURE ON THE IMPACT OF INNOVATION CAPABILITY ON SMALL AND MEDIUM ENTERPRISES (SMEs) PERFORMANCE IN KADUNA STATE, NIGERIA

Authors

  • M. S. Saidu Department of Business Administration, Confluence University of Science and Technology (CUSTECH), Osara, Kogi State
  • N. Abdullahi Department of Business Administration, ABU Business School, Ahmadu Bello University, Zaria
  • A. A. Gemu Department of Business Administration, ABU Business School, Ahmadu Bello University, Zaria
  • T. B. Musa Department of Finance, Ahmadu Bello University, Zaria

Keywords:

Innovation Capability, Marketing Innovation, Organizational Culture, SMEs Performance, Structural Equation Modelling (PLS-SEM).

Abstract

Small and medium-sized enterprises (SMEs) are widely recognized as a critical sector, the
foundation of global industrialization and economic growth, and play a major role in the
global economy. This study deployed innovation capability dimensions as; marketing and
organizational innovation capability to investigate the moderating role of organizational
culture on the impact of innovation capability on SMEs performance. The cross-sectional
study focused on SMEs in the services sector in Kaduna State, Nigeria. The study population
consists of 672 SMEs registered with the Kaduna Chamber of Commerce and Industry, Mines
and Agriculture (KADCIMA). A sample size of 436 was drawn from the population using
Taro Yamane's (1967) statistical formula. A stratified random sampling technique was used
to divide the sample into various strata. The data collected was analyzed using Partial Least
Square Structural Equation Modelling (Smart PLS 4.0) software. The findings from the study
indicated that marketing and organizational innovation capability has a positive and
significant impact on SMEs' performance. However, organizational culture failed to
moderate the relationship between marketing innovation capability and SME performance.
Moreover, the moderating relationship of organizational culture between organizational
innovation capability and SME performance was found to be weak but statistically
significant. From the implication of the findings, it is observed that organizational culture
cannot necessarily strengthen the marketing and organizational innovation capabilities of
SMEs. However, the presence of other variables may change the impact. It is therefore
recommended future studies to use organizational culture as an intervening factor in the
model.

Published

2024-12-20

Issue

Vol. 2 No. 2 (2024)

Section

Articles