Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Innovativeness and Financial Competitiveness of Manufacturing Firms in South-East, Nigeria

Nwabuatu, Emmanuel Nnajiubah (Ph.D)

Abstract

The study examined the relationship between Innovativeness and Financial Competitiveness of Manufacturing Firms in South-East, Nigeria. The study adopted a cross-sectional research design. The population for this study consists of 608 participants from 64 manufacturing firms in the South-East Region of Nigeria. The respondents were top managers, operations managers, sales managers, supervisors, and senior staff. The primary data were collected through a questionnaire. The data were analyzed using Spearman’s Rank-Order Correlation Coefficient Statistic through the Statistical Package for Social Science. The study found a significant relationship between Innovativeness and Financial Competitiveness of Manufacturing Firms in South-East, Nigeria. Hence, the study concluded that Innovativeness relates to Financial Competitiveness. Therefore, the study recommended that management should develop new products that meet the needs of the local market and are competitive in the global market the improve profit growth of manufacturing firms in the South-East region of Nigeria. Management should develop strong relationships with suppliers to ensure a steady supply of high-quality materials and services to improve financial performance of manufacturing firms in the South-East region of Nigeria. Management should implement new technologies that can improve manufacturing processes, such as automation, robotics, and data analytics to achieve financial performance financial performance

Keywords

InnovativenessProduct InnovationService InnovationProcess InnovationProfit

References

Adekola, A., Shittu, A., & Adekola, D. (2017). Analysis of working capital metrics of Nigerian non-financial service firms in relation to gross and net profit margins. International Journal of Management Science and Business Administration, 3(4), 42-53. Adu-Gyamfi, E. (2015). The Impact of Financial Innovations on the Profit Growth of Firms in Ghana. European Journal of Business and Management, 7(5), 164-172. Akindele, J. A. & Odusina, A. O. (2015). Working capital management and firm profitability evidence from Nigerian quoted Companies. Research Journal of Finance and Accounting, 6(7). Akova, B., Ulusoy, G., Payz?n, E., & Kaylan, A.R., (1998). New product development capabilities of the Turkish electronics industry. In: Proceedings of the Fifth International Product Development Management Conference, 863–876 Almazari, A.A. (2014). Impact of Internal Factors on Bank Profitability: Comparative Study between Saudi Arabia and Jordan. Journal of Applied Finance and Banking, 4, 1-7. Almeida, H., Campello, M., & Weisbach, M. S. (2014). Corporate financial and investment policies when future financing is not frictionless. Journal of Corporate Finance, 25, 232 Asghar, MZ, Gul, F, Hakkarainen, PS & Tasdemir, M.Z. 2(019). Giriimcilik E?itiminin Etkisini De?erlendirmek için Giriimcilik Niyetleri Anketinin Do?rulanmas?. Eitim ve Bilim, 44(197). Assey, L. H., Su, X., & Parveen, S. (2020). Effect of working capital management on financial performance: evidence from listed firms at dare s salaam stock of exchange. IOSR Journal of Business and Management (IOSR-JBM), 22(4), 01-08. Baos-Caballero, S., Domínguez-Márquez, F. V., & García-Teruel, P. J. (2014). How does financial reporting quality affect corporate investment efficiency? Applied Economics, 46(13), 1565-1580. Barney, J. B. (2001). Gaining and Sustaining Competitive Advantage. Second edition, Prentice- Hall Boisjoly, R. P., Conine, T. E., & McDonald, M. B. (2020). Working capital management: Financial and valuation impact, 2-8. Bose, D., Barman, S. & Ashis K Chatterjee, A.K. (2017). Capacity planning under postponement strategies decision sciences institute: Effects of price and production postponement on capacity planning, 4-9. Bradmore, D. (1996). Competitive advantage: concepts and cases. Prentice Hall Australia. Castillejo, A., Barrachina, M., Llopis, A. & Samchis, J. (2013). The role of process innovation on sme growth, spanish ministry of science and technology, 4-8. Chenglin, L., Mili, W., Pengcheng, J., Shude, L., & Yongzhi, C. (2006). Features and formation mechanism of faults and potash?forming effect in the Lop Nur Salt Lake, Xinjiang, China. Acta Geologica Sinica?English Edition, 80(6), 936-943. Covin, J. G., & Miles, M. P. (1999). Corporate entrepreneurship and the pursuit of competitive advantage. Entrepreneurship theory and practice, 23(3), 47-63. Darroch, J., & McNaughton, R. (2002). Examining the link between knowledge management practices and types of innovation. Journal of intellectual capital. Dhole, S., Rahman, M., & Hossain, M. (2019). Financial limitations and efficient working capital management: A novel text-based measure of financial constraints. Australian Journal of Management, 44(3), 445-463. Dioha, C., Mohammed, N. A., & Okpanachi, J. (2018). Effect of firm characteristics on profitability of listed consumer goods companies in Nigeria. Dodgson, M., Gann, D., & Salter, A. (2013). The management of technological innovation: Strategy and practice. Oxford University Press. Drejer, I. (2004). Identifying innovation in surveys of services: a Schumpeterian perspective. Research policy, 33(3), 551-562. Edquist, C., Hommen, L., & McKelvey, M. D. (2001). Innovation and employment: Process versus product innovation. Edward Elgar Publishing. Eljelly, A. M. (2004). Liquidity?profitability tradeoff: An empirical investigation in an emerging market. International journal of commerce and management. Gallouj, F. (2002). Innovation in the service economy: The new wealth of nations. Edward Elgar Gallouj, F. (2007). Innovation in services: A review of the debate and a research agenda. Journal of Evolutionary Economics, 17(5), 499-512. Garanina, T. A., & Belova, O. A. (2015). Liquidity, cash conversion cycle and financial performance: case of Russian companies, 2-10. Görg, H., & Hanley, A. (2004). Does outsourcing increase profitability?. Available at SSRN 612228 Gunday, G., Ulusoy, G., Kilic, K., & Alpkan, L. (2011). Effects of innovation types on firm performance. International Journal of Production Economics, 133(2), 662-676. Hagen, B., Zucchella, A., & Cerchiello, P. (2014). The effects of product and process innovations on the export performance of firms. International Business Review, 23(6), 1132-1143. Hamid, M. K., & Akhi, R. A. (2016). Liquidity and profitability trade-off in pharmaceuticals and chemicals sector of Bangladesh. International Journal of Science and Research, 5(9), 420-423. He, Y., Dong, J., & Bai, R. (2011, August). The evaluation model of financial competitiveness in telecom enterprises. In International Conference on Advances in Education and Management, 24-32). Springer, Berlin, Heidelberg. Hitt, M.A., Ireland, R.D., Camp, S.M. & Sexton, D.L., (2001). Guest editors’ introduction to the special issue strategic entrepreneurship: 1ntrapreneurial strategies for wealth creation. Strategic Management Journal 22, 479–491. Hoque, M. A., Siekkinen, M., Khan, K. N., Xiao, Y., & Tarkoma, S. (2015). Modeling, profiling, and debugging the energy consumption of mobile devices. ACM Computing Surveys (CSUR), 48(3), 1-40. Hossain, M., & Kabir, M. (2015). Comparative liquidity study of leading pharmaceutical companies using basic financial statement analysis approaches. Journal of Pharmaceutical Finance, Economics and Policy, 24(2), 67-82. Islam, S. R., Zeng, M., Dobre, O. A., & Kwak, K. S. (2018). Resource allocation for downlink NOMA systems: Key techniques and open issues. IEEE Wireless Communications, 25(2), 40-47 Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. The American Economic Review, 76(2), 323-329. Khan, S. A. R., Yu, Z., Belhadi, A., & Mardani, A. (2020). Investigating the effects of renewable energy on international trade and environmental quality. Journal of Environmental management, 272, 111089. Kokodey, T. A., Lomachenko, T. I., Maidanevych, Y. P., Nekhaychuk, D. V., & Romanova, Y. A. (2020). Effect of world economy globalization and supply chain upon socio-economic processes at the national level. Int. J. Supply Chain Manag, 9, 822-828. Kon, A. (2004). The paradox of technology: What’s driving innovation in service industries? Technology in Society, 26(4), 493-507. Li, H., & Atuagene-Gima, K. (2020). Product innovation strategy and the performance of new technology ventures in China. Academy of Management Journal, 44(6), 1123-1134. Li, H., & Atuagene-Gima, K., (2001). Product innovation strategy and the performance of new technology ventures in China. Academy of Management Journal, 44(6), 1123-1134 Masud, H., Ahmad, M.S., Farzand, J., & Jamil, A. (2016). Relationship between parenting styles and academic performance of adolescents: mediating role of self-efficacy. Asia Pacific Education Review, 7(1), 10.1007/s12564-015-9413-6. Mensah , T. B. & Acquah, I. S. K. (2015). The effect of innovation types on the performance of small and medium-sized Enterprises in the Sekondi-Takoradi Metropolis Nduka, C., & Nnadi, C. (2019). Impact of service innovation on the performance of manufacturing firms in Nigeria. International Journal of Innovation Management, 7(1), 32-45. Neely, A., & Hii, J. (1998). Innovation and business performance: a literature review. The Judge Institute of Management Studies, University of Cambridge, 0-65

More Articles from WORLD JOURNAL OF ENTREPRENEURIAL DEVELOPMENT STUDIES