Analysis of Market Innovation and Organisational Performance in Nigerian Food and Beverage Manufacturing Sector

Abstract

The study examined the relationship between market innovation and organizational performance. Survey research design was used in the study. Data for this research was obtained from primary sources with the aid of a structured questionnaire. Krejche and Morgan formular was used to estimate the sample size. 355 copies of questionnaires were administered to employees of the selected companies out of which only 309 copies were found to be useful for data analysis. The data were analyzed using descriptive statistics and inferential statistics of partial least square structural equation model (PLS-SEM). The hypothesis was tested at 0.05 alpha levels. Findings revealed that market innovation significantly impacts market performance (β =.317, t= 4.720, p=.000). The next vital predictor in order of importance is market innovation and employee performance (β = .313, t= 4.286, p= .000) and finally, market innovation and financial performance (β = .220, t= 4.061, p= .000). The study concludes market innovation is a key determinant of organizational performance. The study recommended that in order to sustain a competitive edge in today's market; organisations have a twofold mission of continuously generating extra value for their customers whilst thriving to cut costs and increase their productivity. To make this mission possible, the results of this study suggest that organisations give additional importance to market innovations for attaining high organisational performance.