ENTREPRENEURIAL ORIENTATION, INNOVATION CAPABILITY AND SUSTAINABLE SME GROWTH IN BAYELSA STATE
Abstract
The study examined entrepreneurial orientation, innovation capability and sustainable SME growth in Bayelsa State. Specifically, it examined the influence of innovativeness, proactiveness and risk-taking on sustainable SME growth and assessed the mediating role of innovation capability in these relationships. The study adopted a quantitative research approach and used data obtained from 45 respondents from selected SMEs in Bayelsa State. Data were analysed using descriptive statistics, Pearson Product Moment Correlation, multiple linear regression and mediation analysis. The findings revealed relatively high levels of innovativeness (M = 3.92), proactiveness (M = 3.86), risk-taking (M = 3.74), innovation capability (M = 3.89) and sustainable SME growth (M = 3.91). The correlation results showed positive relationships among the study variables, with innovation capability recording a strong positive relationship with sustainable SME growth (r = 0.704). The regression results indicated that innovativeness (β = 0.267, p = 0.005), proactiveness (β = 0.211, p = 0.023), risk-taking (β = 0.181, p = 0.029) and innovation capability (β = 0.409, p < 0.001) each made significant positive contributions to sustainable SME growth. The model explained 61.0% of the variance in sustainable SME growth. Furthermore, mediation analysis revealed that innovation capability significantly mediated the relationships between innovativeness, proactiveness and risk-taking and sustainable SME growth, with indirect effects of 0.164, 0.139 and 0.113, respectively. The study concludes that entrepreneurial orientation contributes to sustainable SME growth both directly and through the development of innovation capability. It therefore recommends that SMEs in Bayelsa State strengthen innovative practices, proactive market behaviour, calculated risk-taking and organisational capabilities for developing and implementing innovations to improve sustainable growth and competitiveness.
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