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
