Management Innovation and Sustainability of SmallBusinesses in Ogun State, Nigeria

Abstract

Purpose of the Article: This paper investigated the effect of management innovativeness on the organisational sustainability of the small enterprises in Ogun West Senatorial District, Ogun State, Nigeria.

Research Aim: The aim of this research paper is to investigate the effect of management innovation on sustainability of Small-Scale Businesses in Ogun West Senatorial District, Ogun State, Nigeria.

Methodology/Methods: A survey design was used to collect data on 400 SMEs and analysed through Structural Equation Modelling (SEM).

Findings: Findings indicate that the impact of innovation strategy and human resource innovation on business sustainability was positive and insignificant, whereas financial management innovation had negative and insignificant effects. A great positive predictor that was observed was organisational culture (0.637, p = 0.001), and the model had 46.9% variance in sustainability.

Practical Implication: These observations imply that local organisational culture is more crucial in keeping SMEs striving as compared to strategy and financial innovation. The research has an empirical interest in the contribution of management innovation to the sustainability of SMEs in a developing setting, which is encouraging businesses to include more dimensions of innovation in their business sustainability plans.