CHAPTER 1: Introduction
Technology is a systematic application
of physical forces for production of goods and services. The knowledge
used in practical ways in industry (Oxford 2005). It is the knowledge,
process, tools, methods and systems employed in the creation of goods
and improving in services. Technology is the result of man’s learned and
acquired knowledge or his technical skills regarding how to do things
well (Khalil, 2000). Technological innovation provides the life-blood of
economic activities. Technological innovation is a tool for economic
growth and the application of those inventions to meet emerging business
opportunities, and to meet social needs, and environmental challenges.
For any organization to be able to
compete, it must be technologically innovative. Technological innovation
and core competitiveness enjoy symbiotic relationship (Prhanlad &
Hamel, 1990). Technological Innovation Capability (T.I.C) is an
important component of the core competitiveness of the manufacturing
industry, and core competitiveness play a role in promoting or
influencing technological innovation. Technology should be so designed
to be able to match the marketing capability of the organization and be
seen as reflecting in the strategic plan of the firm and its overall
Innovation should match resources inputs, technology and market.
1.1 Background of the Study
A driving force for competitive scuffle
in the present chaotic environment is innovation. Introducing new
products and services are at the nucleus of economic growth and
development. The ability to innovate has caused researchers to study
activities leading to initiative advancement of individuals and
organisations. Small and medium-sized enterprises (SMEs) furnish a
strong increase to employment and economic growth specifically due to
their innovative activities which becomes a main force of explaining
competitive advantage and firm performance. Accordingly, the values
fashioned by innovations shows potential circumstances that uncovered
new ways of doing things or new products and processes that add benefits
to economic fortunes.
In both developed and developing
countries of the world, SMEs companies have proofed to be prominent in
terms of employment and added values to gross domestic product, ‘yet
their full potential remains untapped’ Schlogl, (2004) cited in . The
support given for the startup of SMEs, necessitate them to becoming
important engines for innovation and technological advancement. In 2007,
The World business council for sustainable development gave a summary
of the weight SMEs lend to government and individuals: SMEs
that are properly supervised become means of employment prospect and
affluence creation. They aid in the generation of revenue and create
communal solidity. Bigger organizations are provided with local services
and supplies and communities have access to affordable goods and
services at lower costs. Furthermore, ‘by working closely with SMEs,
large corporations can develop a new customer base that may not be
accessible to the traditional distribution networks of these
corporations’. Thus SMEs are a reliable source of supply and have
understanding of the pattern of procurement.
1.2 Statement of the Problem
SMEs, world over have been found to
provide jobs for about 75% of the workforce of any country. In periods
of liberalization and privatization SMEs especially in emerging
economics, has become vital economic tools and bedding seeds for
entrepreneurship development and indigenous technology that create
employment and are better positioned over bigger firms in their capacity
to be innovative. However there are barriers to the activities of
innovation in SMEs which according to include a lack in capital
investment, infrastructure, education and training systems, encumber
regulations, and in general deficiencies in know-how and skills
acquisition. Other barriers include constrained managerial capabilities,
difficulty in utilizing technology which results in low productivity
among others. Consequently, investing in innovative behaviors
strengthens knowledge of employees and individuals that drive resilience
of the organizations to create new products, processes, and new
behavior of working that generates improve competitiveness and
achievement of necessary goals to shape performance. The problem
confronting this research is to determine
Technology innovations for growth of SMES in Nigeria; the role of management.
1.3 Objective of the Study
1 To determine the nature of technology innovation in SMES
2 To determine the role of management in technology innovation
1.4 Research Questions
1What is the nature of technology innovation in SMES
2 What is the role of management in technology innovations?
1.5 Significance of the Study
The study shall proffer a framework for the management of technology innovations for the growth of SMES in Nigeria.
1.6 Statement of Hypothesis
1 Ho The level of growth of SMES is low
Hi The level of growth of SMES is high
2 Ho Technology innovations in SMES in Nigeria is Low
Hi Technology innovation in SMES in Nigeria is high
3 Ho The impact of Technology innovations on SMES growth is low
Hi The impact of Technology innovations on SMES growth is high
1.7 Scope of the Study
The study proffers an appraisal of Technology innovation for growth of SMES in Nigeria and the role of management.
1.8 Definition of Terms
Innovations are a broad category, relative to the current knowledge
of the analyzed unit. Any idea, practice, or object that is perceived as
new by an individual or other unit of adoption could be considered an
innovation available for study.
Adopters are the minimal unit of analysis. In most studies, adopters
are individuals, but can also be organizations (businesses, schools,
hospitals, etc.), clusters within social networks, or countries.
Diffusion, by definition, takes place among people or organizations.
Communication channels allow the transfer of information from one unit
to the other. Communication patterns or capabilities must be established between parties as a minimum for diffusion to occur.
The passage of time is necessary for innovations to be adopted; they
are rarely adopted instantaneously. In fact, in the Ryan and Gross
(1943) study on hybrid corn adoption, adoption occurred over more than
ten years, and most farmers only dedicated a fraction on their fields to
the new corn in the first years after adoption.
The social system is the combination of external influences (mass
media, organizational or governmental mandates) and internal influences (strong and weak social relationships, distance from opinion leaders). There are many roles in a social system, and their combination represents the total influences on a potential adopter.[20
All Project Materials Inc. (2020). TECHNOLOGY INNOVATIONS FOR GROWTH OF SMES IN NIGERIA;. Available at: https://researchcub.info/project-1461.html. [Accessed: ].