INNOVATION CAPABILITIES AND SUSTAINABLE PERFORMANCE OF MSMES IN RIVERS STATE.

Abstract

This study examined the relationship between innovation capabilities specifically Product Innovation Capability, Process Innovation Capability, and Marketing Innovation Capability and the sustainable performance of Micro, Small, and Medium Enterprises (MSMEs) in Rivers State. The study adopted a cross-sectional survey design involving 20 MSMEs operational for over a decade, with data collected from 40 managerial respondents using structured questionnaires. Data were analyzed using Spearman rank-order correlation to test three hypotheses at a 0.01 significance level. The results indicated a very strong positive relationship between Product Innovation Capability and Sustainable Performance (r = 0.905, p < 0.01), a strong positive relationship between Process Innovation Capability and Sustainable Performance (r = 0.690, p < 0.01), and a moderate to strong positive relationship between Marketing Innovation Capability and Sustainable Performance (r = 0.557, p < 0.01). These findings suggest that innovation capabilities significantly influence MSMEs’ ability to maintain long-term financial, operational, and competitive sustainability. The study recommends practical strategies for MSMEs to strengthen these innovation capabilities to enhance sustainable performance.