Innovativeness and Competitive Advantage of Small and Medium Enterprise in Kogi State
Keywords:
Competitive Advantage, Value Capture Innovation, Value Proposition Innovation, New Cost Structures, New Revenue Models, New Customer RelationshipsAbstract
The study focused on the nexus between innovation and the competitive advantage of SMEs
in Kogi State. The study examined the effect of value capture innovation and value proposition
innovation on the competitive advantage of SMEs in Kogi State. The survey research design was
adopted. For this study, multi-stage random sampling technique was adopted. The sample size of the
study was 255 SMEs. The researcher used primary source of data. Data were collected through
questionnaire. Cronbach's reliability test showed that value capture innovation has 0.917; and value
proposition innovation has 0.776. All data collected were presented and analyzed using frequency
distribution table. Multiple Regression analysis was used for testing hypotheses. Finding showed that
value capture innovation and value proposition innovation have substantial effect on the competitive
advantage of SMEs in Kogi State. The study concluded that SMEs need to possess innovation
capabilities so as to enhance reasonable position in the competitive business environment. The study
recommended that SME owners should increase their commitment to value capture innovation so as
to achieve sustainable competitive advantage for their enterprises, and that SME owners should
invest in value proposition innovation to create effective medium route towards the achievement of
sustainable competitive advantage of their enterprises.
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