INNOVATION CAPABILITY AND PERFORMANCE OF BORN GLOBAL FIRMS

Abstract

This study examined the effect of innovation capability on the performance of born global firms in Nigeria, with specific reference to International Breweries Plc, and Guinness Nigeria Plc. A descriptive survey research design was adopted to collect quantitative data from employees of the selected firms. The population of the study consisted of 1,000 employees, from which a sample size of 286 respondents was determined using the Taro Yamane formula. A stratified random sampling technique was employed to ensure proportional representation of respondents from both firms. Data were collected using structured questionnaires based on a 5-point Likert scale. The instrument was validated through expert review and tested for reliability using Cronbach’s Alpha, which confirmed its internal consistency. A total of 286 structured questionnaires were distributed to staff of International Breweries Plc and Guinness Nigeria Plc. However, 277 were completed and returned, resulting in an impressive response rate of 96.85 percent. Data analysis was conducted using SPSS Version 23, employing descriptive statistics and Ordinary Least Squares regression. The findings revealed that all five dimensions of innovation capability had positive and statistically significant effects on firm performance. Among these variables, TIC had the strongest influence, followed by MKTIC, PDIC, ORGIC, and PRIC. The study concluded that innovation capability is a critical driver of performance in born global firms and that firms that invest in multiple dimensions of innovation capability are more likely to achieve superior outcomes. The study recommended that firms should prioritize innovation investments across product development, process improvement, marketing strategies, organizational practices, and technological advancement. It also suggested that policymakers should create an enabling environment that supports innovation activities in Nigerian firms. The study provided practical insights for managers and policymakers on how to enhance competitiveness through innovation. Overall, the study emphasized that sustained investment in innovation capability is essential for achieving long-term performance and competitiveness in born global firms.