Hamza Aliyu Galadanchi
Department ofBusiness Administration, collegeof Social andManagement Sciences, Al- QalamUniversity Katsina
Corresponding Address; [email protected] +2348035962716
Abstract
The study examined the impact of innovative capability on the performance of Small and Medium Enterprises (SMEs) within the manufacturing sector in Nigeria. Innovative capability is a critical driver of competitive advantage and growth, particularly in developing economies where SMEs play a pivotal role in economic development. Through a conceptual analysis, this research explores how the adoption of innovative practices influences productivity, profitability, and overall business performance. The analysis is grounded in existing literature and theoretical frameworks that link innovation to business success. The study also highlights the unique challenges and opportunities faced by Nigerian manufacturing SMEs in fostering innovation. Findings indicate that while innovative capability significantly enhances performance, factors such as inadequate infrastructure, limited access to finance, and insufficient government support hinder the full potential of innovation in this sector. Recommendations were proposed to address these barriers, aiming to bolster the innovative capacity of SMEs and, consequently, their contribution to Nigeria’s economic growth. Keywords: Innovation, Performance, SMEs, Innovative Capability, Conceptual analysis