Prior to the discovery and exploitation of oil in Nigeria. Agriculture was primarily the mainstay of the economy and contributed 80-90% of government foreign earnings. But with the exploitation of oil till date, there has been an essential replacement of the previous composite sector of traditional primary export with oil. Over times, these traditional exports were even imported into the country to supplement local production. During the 70s and 80s Nigeria was importing virtually everything, meat products, grains, clothing’s, etc.
Worse still, the import content of our manufactures became unduly high such that industry group was exempted. Consequently, the Nigeria economy over time became characterized by a mono-product exclusively oil which subsequently result to over dependence on huge external debts as a result of excessive borrowings for capital development, weak manufacturing capacity, it’s imperative to note here that most of these manufacturing outfits were foreign owned and their profits were repatriated to their home countries. Ndiomu(1988) observed that for the fact that Nigeria economy was structurally imbalanced and have become very conspicuous since the end of the Nigeria civil war. However, because of the fortunes of the petroleum sector the real impact was not felt until now.
In a bid to redress the imbalance as well as promote rapid economic development of the country, successive governments has tried to encourage establishment, support and funding of small and medium scale enterprises.
Furthermore, SMEs in Port Harcourt have been known to improve the linkage among the diverse sector of the economy by providing opportunities for developing and adopting appropriate technological approaches, offer excellent breeding ground for entrepreneurial and managerial talent, promotion of industrial diffusion and regional balance etc.
It’s with the view to realizing these impacts as well as stemming the out flow of funds through excessive exports and expertise coupled with the significant contribution that SMEs have made to the growth and success of most economy that has stimulated the interest of government.
In Port Harcourt, opportunities abound for SMEs in virtually every field of economic enterprise, block molding, printing, poultry etc. This has led to government develop different policies, programs and incentives aimed to encourage not only birth of new SMEs but also to develop existing ones. However, the growth rate has been slow and failure and even death of SMEs have been quite common.
Logic dictates that innovation is powerful factors behind the success of any enterprise operation research have shown that innovative firm successfully proper at the expense of their less able competitors. Indeed, evolutionary theory of economic of change speculates that product innovation and corporate growth and success are relative drives. Nelson and winter (1982). For a business to survive in a context or competitors, it must adopt its policy. To be successful over a long period of time. Business must develop the ability to innovate and then to profit from that innovation. Nelson (1991). Different endowment of innovation capabilities on corporate growth activities points to some regularities across SMEs.
On the other hand, corporate growth rates appears almost random can be reasonably approximated by Gibrat law. Geroski (1998) accordingly which the probability of a given proportionate change in size specifies period is the same for all SMEs.
The ability to innovate has caused researcher to study activities leading to initiative advancement of individuals. SMEs finish a strong increase to employment and economic growth specifically due to their innovative activities which become a main force of explaining competitive advantage. Accordingly, the values fashion by product innovation shows potential circumstances that uncovered new ways of doing things or new product and process that add benefits to economic fortunes.
The support given for the start up of SMEs necessitates those becoming important engines for innovations and corporate growth venture strategies advancement and improvement.
In virtually every street both in the urban and rural areas across Port Harcourt, there seems to be a dominance of SME type of business organizations. This is largely due to the enabling factors and natural resources, market demand for goods and services and government interest in the development, growth and survival of SMEs for social economic development of Port Harcourt.
However it’s sadden to note over the year, that majority of these SMEs does not perform well and hence do not expand their scope of operations. The above scenario contrast sharply with the tremendous success recorded in other country. The most fundamental and logical cause of the inability of SMEs to perform very well expand their operation as well as survive has been absence of clear policy and practice of product innovation to meet challenges of the changing socio-economic and political trend in general. It’s against this background that this study is designed to evaluate the impact of product innovation on corporate growth and success. Our focus is on some selected small and medium scale enterprise (SMEs) in Port Harcourt.
The main objective of the study is to highlight the impact of product innovation on growth and success of SMSs in Port Harcourt. Specifically the study is directed towards:
The following research questions are designed to help the researcher achieve her objectives.
This study will afford a successful and thorough examination of current practices in product innovation in Port Harcourt, as well as expose influential and critical factors and processes that determine the success of product innovation.
Furthermore, it will highlight the socio-economic impact to product innovation in small and medium scale enterprise in Port Harcourt as provide recommendations for enhancing the proficiency of the process with the view to increase the growth and success of SMEs.
Finally, it will provide a guide to operations of SMEs and government policy makers on the proper frame to adopt towards product innovation of SMEs with the view of enhancing effective growth and success.
This study will attempt to be reasonably represented as possible. If it were to be within the means of the researcher, all SMEs in Port Harcourt will be examined. Since this form the scope of the study.
This study will be limited to some of the SMEs in Port Harcourt because of time and financial constraints.
Furthermore, the selections would be done in such a way that they are located all over the respective enterprise to ensure adequate representations.
In this study, it will be very important to define key terms that will be featuring. They include the following:
OTHER SIMILAR BUSINESS ADMINISTRATION PROJECTS AND MATERIALS