On the capability of SMEs to innovate: the cable and wire manufacturing subsector in Nigeria

This study explored the factors that explain innovation capability in SMEs in developing countries. This is important given the increasing global pressures that these SMEs have to face. The data employed came from a survey of cable and wire manufacturing firms in Nigeria. The important factors that accounted for innovation performance were firm-level leadership and use of new technologies – particularly ICTs. Important external factors included interactions with customers and suppliers of equipment/raw materials. Particularly, the industry association was about the most significant driver of innovativeness. We therefore conclude that it is beneficial for industries in developing countries to be well-organised as a means to achieving improved innovation capability.