The Journal of Accounting and Management, Vol 9, No 2 (2019)

Abstract

This paper investigates the effect of strategic innovation on entrepreneurship development of selected SMEs competitiveness. The main objective is to explore the effect of strategic innovation on entrepreneurship development of selected SMEs competitiveness in Lagos State, Nigeria. Survey research design was used for the study. The study population consists of 11,663 owners/managers of SMEs in Lagos State. The Cochran formula was used to arrive at a sample size of 742. A structured questionnaire was administered with 92.6% response rate. The instrument was validated and Cronbach’s Alpha reliability coefficients for the major constructs were obtained for the construct validity test factor analysis. Findings revealed that Innovation strategy had significant effect on the profitability of SMEs competitiveness in Lagos State (β = 0.314, t = 8.884, p<.05).This study made a contribution to knowledge by submitting significant background to the various concepts of strategic innovation and entrepreneurship development. The study concluded that there is a positive and significant effect of innovation strategy on profitability of SMEs competitiveness in Lagos State, Nigeria. Therefore, the paper recommended that SMEs competitiveness in Lagos State should constantly engage in innovation to improve the competitive advantage it acquires against other organizations in the sector. They should constantly analyze and determine their services operations in an attempt to improve operations efficiency