Abstract:
Entrepreneurial innovation as innovative behavior and practices remains critical to organizational growth. It plays an important role in strategically positioning firms with a competitive edge as well as helps such firms to gain entry into new markets. This study evaluates entrepreneurial innovation and organizational growth in small and medium enterprises (SMEs) in South-South region of Nigeria. The specific objectives were to: ascertain the extent to which; new product/service introduction increase sales growth; product/service improvement affect customer base generation; initiation and improvement in production/service methods relates with new product success; new source of supply of raw material increases organizational return on investment; and adoption and modification of new technology increase the number of employees. Descriptive survey method was adopted in the study among 566 staff of registered SMEs in the six (6) South-South) States Nigeria. Structured questionnaire and interview guide were used to obtaining data. The data obtained were analyzed using descriptive statistic and the study hypotheses were tested using linear regression and correlation at 5% level of significant. The result of the study shows that introduction of new product/service significantly and positively increases sales growth (r = .655; r2 = .429; F = 195.383; T = 13.978; p = .000); improvement in existing product significantly and positively affect customer base generation (r = .855; r2 = .731; F = 706.173; T = 26.574; p = .000); there is a significant positive relationship between initiation and implement of new methods and increase in number of employees (r= .569; p = .000 < 0.05); new source of supply of raw material significantly and positively increases organizational return on investment(r = .703a; r2 = .429; F = 195.383; T = 13.978; p = .000); and adoption and modification of new technology significantly and positively influence product success (r = 769; r2 = . . 591; F = 375.754; T = 19.384; p = .000). It was concluded that business environment is characterized by business innovation which impact on the organization especially in the area of growth as it brings about new method of engaging in product/service delivery in an effort to meet the ever changing consumer taste and spur organizational growth. It was recommended among other things that; the management of various small and medium enterprises (SMEs) should strategically engage in new product/service development as this will create new market for the organizations which will thereby ensure rapid turnover or sales growth for such organization; the need to enhance the already existing product/services is paramount and therefore should be pursued as it will attract new customer as well as retain the already existing customers were recommended.
