Process Innovation and Operational Performance of SMEs in Taraba State, Nigeria
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Abstract
This study investigates the effect of process innovation on the operational performance of Small and Medium Enterprises (SMEs) in Taraba State, Nigeria. It specifically examined how technological capability, human resource management (HRM) practices, knowledge management, and external collaboration and networks influence SME operational performance. Grounded in the Resource-Based View, Human Capital Theory, Knowledge-Based View, Social Network Theory, the study employed a descriptive and correlational research design. Primary data were collected from 365 SME owners and employees across six towns in Taraba State using structured questionnaires. Construct scores were derived from 26 validated Likert-scale items (α = 0.762-0.944). Data analysis, conducted with SPSS v26, included descriptive statistics, Pearson correlation, and multiple regression. The results indicated high mean agreement for all four process innovation dimensions and operational performance (range: 4.007-4.121 on a 5-point scale). Pearson correlation revealed significant positive relationships with operational performance, with external collaboration and networks (r = 0.254, p < 0.001) as the strongest predictor, followed by HRM (r = 0.240), technological capability (r = 0.229), and knowledge management (r = 0.194). The multiple regression model was significant (F(4, 360) = 7.654, p < 0.001, Adjusted R² = 0.068), leading to the rejection of all four null hypotheses. The findings suggest that multi-dimensional process innovation strategies enhance operational performance in resource-constrained SMEs. Strategic investment in technology, human capital, knowledge systems, and collaborative networks is recommended to achieve synergistic performance improvements.
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Copyright (c) 2026 Voghagi Udisienambu Micah (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Voghagi Udisienambu Micah , Department of Business Administration, Faculty of Management Sciences, Federal University Wukari, Taraba State, Nigeria.
Department of Business Administration.
Assistant Lecturer
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