Growth Strategy, Technological Innovation and Performance of Manufacturing Firms in Southwest Nigeria

Growth strategy is critical to the performance of small and medium enterprises (SME) in an economy. This study examined the moderating effect of technological innovation on growth strategy and performance of SMEs. It adopts quantitative approach, and used 361 copies of questionnaire were distributed among SME owners in Southwest Nigeria and analysed with Structural Equation Modelling (SMART PLS). Results shows significant relationships between growth strategy and SMEs performance and technological innovation reinforces the relationships. It indicates that product development has 78% predictability on performance of SME, also 58% of variance in performance of SME is explained by market penetration. Market development has 73% predicting effect on performance of SME, and also that 70% of variance in performance of small and medium enterprise is explained by product diversification. It is recommended that owners of SMEs should invest in quality and diversified products, and invest in research and development that encourages intrapreneurship

Growth Strategy, Technological Innovation and Performance of Manufacturing Firms in Southwest Nigeria

GroJIIth strategy is critical to the peiformance of small and medium enterprises (SME) in an economy. This stutjy examined the moderating effect of technological innovation on growth strategy and peiformance of SMEs. It adopts quantitative approach, and used 361 copies of questionnaire wen distributed among Si\tlE o1vners in So11thwest Nigeria and anajysed 1vith Stmctural E quation Modelling (51\IIART PLS). Results shows significant relationships between growth strategy and SME s peiformance and technological innovation reinforces the relationships. It indicates that product development has 18% predictability on peiformance of SME, also 58% of variance in peiformance of SME is explained f:y market penetration. Market development has 13% predicting effect on peiformance of SME, and also that 10% of variance in peiformance of small and medium enterprise is explained 0 product diversification. It is recommended that o1vners of SME s should invest in quality and diversified products, and invest in research and development that encourages intraprenetmhip