EFFECT OF INNOVATION PRACTICES ON THE PERFORMANCE OF AGRO-PROCESSING SMALL AND MEDIUM ENTERPRISES (SMEs) IN MAKURDI, BENUE STATE

Abstract

Agro-processing SMEs are constantly being pressured by global competition thus necessitating the need for stepping up and sustaining performance through innovation initiatives. This study examined the effect of innovation practices on performance of agro-processing SMEs in Makurdi, Benue State. The specific objectives were to examine the effect of organizational innovation and the effect of marketing innovation on the performance of agro-processing SMEs in Makurdi, Benue State. The study adopted survey research design. The study population comprised of 108 owners/managers of SMEs in Makurdi, which also served as sample for the study, from which data were obtained via administered questionnaire. The researcher, therefore, ran a multiple regression analysis using Statistical Package for Social Sciences (SPSS version 27). The results of the study established that organizational and marketing innovations have significant/positive effect on the performance of agro-processing SMEs in Makurdi, Benue State. Therefore, recommendations were made amongst others that agro-processing SMEs in Makurdi should adopt more innovative reward systems to optimize work processes, create innovative work designs/roles for employees, engaging in strategic decision-making processes, and engage in innovative marketing campaigns etc so as to scale up their performance.