The study investigated how product innovation, as a strategy,
enhances the survival of the small and medium enterprises in Nigeria, using
Prodco Foods Nigeria Limited as a study. Among the objectives set out were
the relationship between product innovation and the survival of Small and
Medium Enterpries (SMEs), changes in tastes and preference of consumers
necessitating product innovation, and whether product innovation increases
sales volume of SMEs. The research study was developed around the product
innovative and dynamic capability innovative theories. The theoretical model
of the product life-cycle was used in developing the three hypotheses that
were tested at 0.05 significant levels; through the survey of one hundred and
forty respondents. Copies of the questionnaire were administered to the
respondents sampled. The validity and reliability of the instrument were
measured at Cronbach’s alpha of 0.63 and alternative form validity of 0.59.
The findings revealed that there is a significant relationship between product
innovation and the survival of SMEs, also, that changes in tastes and
preference of consumers necessitate product innovation, and that product
innovation increases sales volume of SMEs. The conclusion from the
research findings showed that there is need for SMEs to carry out research
on product innovation; in other to meet and fulfill the demand and
expectations of all consumers and the market. It was recommended that
adequate finance, condusive environment, and public policy framework
should be developed by the Nigerian governments to support and encourage
the SMEs
