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The Nexus Between Innovation Adoption and Organizational Growth: Evidence From Small and Medium Enterprises (SMEs) in Imo State

2026 · International journal of research and innovation in social science · 0 citations

Abstract

This study investigates the relationship between innovation adoption and organizational growth among Small and Medium Enterprises (SMEs) in Imo State, Nigeria. Innovation adoption, encompassing product, process, and technological innovations, is widely recognized as a key driver of firm performance and competitiveness. Using a quantitative research design, data were collected from 334 SMEs through structured questionnaires, with 320 valid responses analyzed. Descriptive statistics revealed moderate to high adoption of innovations, with product innovation being the most prevalent. Correlation and multiple regression analyses indicated that all three types of innovation significantly predict organizational growth, with product innovation having the strongest impact. Key challenges to innovation adoption included financial constraints, infrastructural deficits, limited managerial competence, and resistance to change. The study concludes that strategic adoption of innovations is crucial for SMEs’ growth and recommends that SMEs prioritize product and process innovations, adopt appropriate technologies, and build managerial capacity. Policymakers are encouraged to improve access to finance, infrastructure, and technical support to foster SME innovation and growth.

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