The Impact of Innovativeness on the Performance of Agribusiness in South-West Nigeria

Abstract

Agribusiness plays a vital role in promoting food security, employment generation, and economic development in Nigeria. However, many agribusiness enterprises continue to face challenges related to low productivity, inadequate technological adoption, climate variability, poor market access, and increasing competition. These challenges underscore the importance of innovativeness as a strategic capability for enhancing organizational performance. This study examined the impact of innovativeness on the performance of agribusiness enterprises in South West Nigeria. Specifically, the study investigated how product, process, technological, marketing, organizational, and digital innovations influence agribusiness performance. A quantitative research approach employing a cross-sectional survey design was adopted. Primary data were collected from owners and managers of agribusiness enterprises operating across the six states of South West Nigeria using a structured questionnaire. Data were analyzed using descriptive statistics and Partial Least Squares Structural Equation Modeling (PLS-SEM). The study was anchored on the Resource-Based View, Dynamic Capabilities Theory, and Diffusion of Innovation Theory, which collectively explain how innovation capabilities contribute to organizational competitiveness and superior performance. The findings are expected to demonstrate that innovativeness significantly improves agribusiness performance by enhancing operational efficiency, increasing productivity, promoting value addition, improving product quality, expanding market opportunities, and strengthening business sustainability. The study concludes that innovativeness is a strategic driver of agribusiness competitiveness and recommends increased investment in digital agriculture, agricultural research and development, innovation financing, capacity building, and supportive government policies to encourage the adoption of innovative technologies among agribusiness enterprises in South West Nigeria.