Journal of Business and Management

Journal of Business and Management

ISSN: 2291-1995 (Print)    ISSN: 2291-2002 (Online)

Volume 1 (2012), No. 1, Pages 1-14

DOI: 10.12735/jbm.v1i1p01

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An Evaluation of Technology Innovation on the Performance of Indigenous Textile Weaving Firms in Southwestern Nigeria

Alireza Fazlzadeh1 

1College of Economics and Management, University of Tabriz

URL: https://doi.org/10.12735/jbm.v1i1p01

To Cite this Article     Article Views: 812     Downloads: 495  Since January, 2015

Abstract

The study evaluated the impact of technology innovation on the performance of indigenous textile weaving firms in south-western Nigeria. Primary data were collected through structured questionnaire administered on indigenous weavers in the study area. Results of correlation analysis showed the relationship between business performance and source of raw material (r=0.17, t=2.84, p<0.01); product innovations (r=0.10, t=1.65, p<0.05); investment in technology innovations (r=0.19, t=3.25, p<0.01); business advisory services (r=0.11; t=1.74, p<0.05); reduction of tax (r=0.11; t=1.73, p<0.05), export incentives (r=0.13; t=2.09, p<0.01); and total capital investment (r=0.21; t=3.55, p<0.01). Factors with negative effect are cost of R&D (r=-0.19; t=3.24, p<0.01); threats by competitors (r=-0.18; t=3.06, p<0.01) and production of quality products (r=-0.09; t=1.64, p<0.05). Regression analysis and its impact on business performance were local marketing, (β=17.95, z=11.18, p<0.01); national marketing, (β=18.35, z=1.64, p<0.01); product innovations, (β=3.17, z=3.03, p<0.01); total capital invested, (β=2.68, z=10.19, p<0.01) and experience in business, (β=2.66, z=2.96, p<0.01). Factors with negative effect were payment of tax, (β=-17.46, z=-21.31, p<0.01); regional marketing, (β=-17.38, z=-18.08, p<0.01); local competition, (β=-16.53, z=-9.02, p<0.01). The study concluded that sale of products in the domestic market; product innovations; total capital invested and years of experience in business were the factors responsible for the resilience and sustenance of indigenous textile weaving firms. However, factors such as payment of tax, sale of products in regional market, local competition, trade liberalization and cost of R&D are the major constraints in the performance of firms in the industry.

JEL Classifications: L67, O12

Keywords: technology innovations, indigenous textile, performance evaluation and small enterprises

To Cite this Article: Adegbite, S. A. (2012). An Evaluation of Technology Innovation on the Performance of Indigenous Textile Weaving Firms in Southwestern Nigeria. Journal of Business and Management, 1(1), 1-14. https://doi.org/10.12735/jbm.v1i1p01

Copyright © Stephen Akinade Adegbite

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This article is published under license to Science and Education Centre of North America. This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International License.

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An Evaluation of Technology Innovation on the Performance of Indigenous Textile Weaving Firms in Southwestern Nigeria
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