Innovation and Competitiveness of Selected Small and Medium-scale Enterprises (SMES) in Lagos State, Nigeria

Small and Medium-scale Enterprises (SMES) are firms that act as catalysts and have been seen to support a country’s growth and development. Despite concerted efforts from different stakeholders to improve the output of SMES, they still do not meet the standards that are required of them. The population of this study consist of SMES management staff of the selected SMES in Lagos State. The population comprised 8,396 owners/managers of SMES. The sample size was 471 and a stratified random sampling technique was employed. An adapted and validated questionnaire was administered to the respondents and the data gathered was analysed using multiple linear regression analysis. Innovation variables were found to have a significant combined effect on the competitiveness of selected SMES in Lagos State, Nigeria (R = 0.379, AdjR2 = 0.136, p < 0.05). Product innovation with (β = 0.222; p = 0.033 < 0.05), process innovation with (β = 0.478; p = 0.023 < 0.05) and market innovation with (β = 1.028; p = 0.015 < 0.05). The study concludes that innovation has a significant effect on the competitiveness of SMES in Lagos State Nigeria. The study recommends that more efforts on innovation should be by SMES to sustain competitiveness