Innovation Capabilities and Performance of Food Processing Companies in Nigeria

Abstract: Innovation capabilities are key triggers of competitiveness and performance of firms across industries. The research explores the effect of innovation capabilities on the performance of Food Processing Companies in Nigeria. The study employed a cross-sectional survey research design. The target population consists of 406 lower management, middle-level management and top management staff of fifteen (15) food processing companies. A census sampling approach was adopted to sample the entire population. A pilot study was conducted to test the validity and reliability of the survey questionnaire. The primary data collected from the respondents through self-administered questionnaire were processed and analysed with the aid of the Statistical Package for Social Sciences (SPSS) version 25. The Pearson’s Product Moment Correlation was performed to ascertain the relationship between the variables while regression analsysis was utilized to determine the effect of the predictor variables on the dependent variable. The outcomes of the correlation analysis indicated that positive relationship between the study variables. The results of tested hypotheses revealed that product innovation capability, marketing innovation capability and technological innovation capability had positive and significant effect on the performance of the firms. The study concluded that innovation capabilities implemented by firm help to foster performance of firms. It recommended amongst others that management of the companies should constantly adopt new technologies in the manufacture of new products to meet customer needs and expectations.