ROLE OF INNOVATION PRACTICES ON SUSTAINABILITY OF MANUFACTURING SMALL AND MEDIUM ENTERPRISES IN NIGERIA

Abstract

As the global business climate becomes more competitive, manufacturing SMEs faces an increasing challenge, necessitating a critical appraisal of conventional models and the development of innovative practices and strategies to respond to the dynamic and demanding market conditions.  The goal of this study is to look into the impact of innovation practices on the sustainability of manufacturing Small and Medium scale Enterprises (SMEs) in Lagos State, Nigeria. The sample size is 114 manufacturing SMEs, drawn from a total of 57 registered manufacturing SMEs located in Isolo and Amuwo Odofin Industrial estates in Lagos State. The Statistical package for social science (SPSS) version 23 was used to test three hypothesis employing correlation and regression analysis. This study discovered that innovation strategy have a significant positive effect on sustainability (r=.627; p>0.01), and same significant positive influence on the effect of organizational culture on sustainability(r=.605; p>0.01). The regression analysis revealed that the model account for 45.2% of the variance in organizational Sustainability. The findings however, revealed the importance of Innovation Strategy and Organisational Culture in fostering sustainability among manufacturing SMEs in Lagos. Practical consequences include the proposal that firms strategically implement new methods and build a good corporate culture in order to improve sustainability. Policymakers may utilize these findings to develop measures that help SMEs encourage innovation and favorable cultural environments, therefore contributing to the region's overall economic sustainability.