INNOVATION MANAGEMENT AND BUSINESS GROWTH OF SMALL AND MEDIUM-SIZED ENTERPRISES IN ADAMAWA STATE, NIGERIA

Abstract

This study examines the effect of innovation management on the business growth of Small and Medium-Sized Enterprises (SMEs) in Adamawa State, Nigeria. Grounded in Schumpeter's Theory of Innovation and Creative Destruction (1934, 1942), the research investigates how product innovation, process innovation, marketing innovation, organisational innovation, and innovation leadership collectively and individually influence the business growth of SMEs operating in a post-conflict, agrarian economy. A quantitative, cross-sectional survey design was adopted, with primary data collected through structured questionnaires administered to 372 owner-managers and senior executives of SMEs across three senatorial districts (Adamawa North, Adamawa Central, and Adamawa South) of the state. Data were analysed using descriptive statistics, Pearson product-moment correlation, and multiple linear regression estimated via Ordinary Least Squares (OLS). The findings reveal that product innovation (β = 0.264, p < 0.001), process innovation (β = 0.218, p < 0.001), marketing innovation (β = 0.187, p < 0.01), organisational innovation (β = 0.152, p < 0.01), and innovation leadership (β = 0.239, p < 0.001) all exert statistically significant positive effects on business growth. The model explains 71.6% of the variance in business growth (Adjusted R² = 0.716; F = 186.54, p < 0.001). The study concludes that innovation management is a critical driver of SME growth in Adamawa State and recommends that SME owners invest systematically in innovation capabilities, that the Adamawa State Government and development partners establish innovation support ecosystems, and that post-conflict reconstruction programmes integrate enterprise innovation as a core pillar of economic recovery.