INNOVATIVENESS AND OPERATIONAL EFFICIENCY OF AGRO-ALLIED SMEs IN NORTH CENTRAL NIGERIA

R.A Gbadeyan; Nurudeen Bello; F.Y Muhammed-Jamiu; S.M Adeyeye; M.A Raje

R.A Gbadeyan University of Ilorin, Ilorin, Nigeria
Nurudeen Bello Kwara State University, Malete, Kwara State.
F.Y Muhammed-Jamiu Kwara State University, Malete, Kwara State.
S.M Adeyeye Kwara State University, Malete, Kwara State.
M.A Raje National Open University of Nigeria, Surulere Study Centre, Surulere, Lagos State.

Keywords: Innovativeness, Operational Efficiency, Agro-Allied SMEs

Abstract

Innovativeness is widely recognized as a strategic capability that enables firms to develop new products, improve business processes, adopt emerging technologies, and respond proactively to changing market conditions. As a key dimension of entrepreneurial marketing, innovativeness enhances organizational competitiveness and long-term sustainability. This study examined the effect of innovativeness on the operational efficiency of agro-allied small and medium-sized enterprises (SMEs) in North Central Nigeria. Despite the significant contribution of agro-allied SMEs to employment generation, food security, and economic development, many enterprises continue to experience operational inefficiencies due to limited innovation adoption, inadequate technology, and resource constraints. Grounded in Schumpeter's Theory of Innovation, the study adopted a cross-sectional research design and collected primary data through a structured questionnaire administered to owners and managers of agro-allied SMEs. A sample size of 398 respondents was determined using Taro Yamane's formula, while 395 valid questionnaires were retrieved and analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with Smart PLS Version 4.0. The findings revealed that innovativeness has a positive and statistically significant effect on operational efficiency (β = 0.664, t = 21.687, p < 0.001), indicating that firms with higher levels of innovativeness are more likely to optimize resource utilization, improve productivity, reduce operational waste, and enhance overall operational performance. The study concludes that innovativeness is a critical entrepreneurial marketing strategy for improving the operational efficiency and competitiveness of agro-allied SMEs in North Central Nigeria. Accordingly, the study recommends that owners and managers of agro-allied SMEs should institutionalize innovativeness by continuously investing in new product development, process improvement, appropriate technologies, and creative problem-solving to achieve sustainable operational efficiency and long-term competitiveness.

Author Biographies

R.A Gbadeyan, University of Ilorin, Ilorin, Nigeria

Department of Marketing, Faculty of Management Sciences

Nurudeen Bello, Kwara State University, Malete, Kwara State.

Department of Business and Entrepreneurship, Faculty of Management and Social Sciences

F.Y Muhammed-Jamiu, Kwara State University, Malete, Kwara State.

Department of Business and Entrepreneurship, Faculty of Management and Social Sciences

S.M Adeyeye, Kwara State University, Malete, Kwara State.

Department of Business and Entrepreneurship, Faculty of Management and Social Sciences