TECHNOLOGY INNOVATIONS FOR GROWTH OF SMES IN NIGERIA; THE ROLE OF MANAGEMENT.

TECHNOLOGY INNOVATIONS FOR GROWTH OF SMES IN NIGERIA; THE ROLE OF MANAGEMENT.

CHAPTER 1: Introduction

Technology is a systematic application of physical forces for production of goods and services. The knowledge used in practical ways in industry (Oxford 2005). It is the knowledge, process, tools, methods and systems employed in the creation of goods and improving in services. Technology is the result of man’s learned and acquired knowledge or his technical skills regarding how to do things well (Khalil, 2000). Technological innovation provides the life-blood of economic activities. Technological innovation is a tool for economic growth and the application of those inventions to meet emerging business opportunities, and to meet social needs, and environmental challenges.

For any organization to be able to compete, it must be technologically innovative. Technological innovation and core competitiveness enjoy symbiotic relationship (Prhanlad & Hamel, 1990). Technological Innovation Capability (T.I.C) is an important component of the core competitiveness of the manufacturing industry, and core competitiveness play a role in promoting or influencing technological innovation. Technology should be so designed to be able to match the marketing capability of the organization and be seen as reflecting in the strategic plan of the firm and its overall success.

Innovation should match resources inputs, technology and market.

1.1            Background of the Study

A driving force for competitive scuffle in the present chaotic environment is innovation. Introducing new products and services are at the nucleus of economic growth and development. The ability to innovate has caused researchers to study activities leading to initiative advancement of individuals and organisations. Small and medium-sized enterprises (SMEs) furnish a strong increase to employment and economic growth specifically due to their innovative activities which becomes a main force of explaining competitive advantage and firm performance. Accordingly, the values fashioned by innovations shows potential circumstances that uncovered new ways of doing things or new products and processes that add benefits to economic fortunes.

In both developed and developing countries of the world, SMEs companies have proofed to be prominent in terms of employment and added values to gross domestic product, ‘yet their full potential remains untapped’ Schlogl, (2004) cited in . The support given for the startup of SMEs, necessitate them to becoming important engines for innovation and technological advancement. In 2007, The World business council for sustainable development gave a summary of the weight SMEs lend to government and individuals: SMEs that are properly supervised become means of employment prospect and affluence creation. They aid in the generation of revenue and create communal solidity. Bigger organizations are provided with local services and supplies and communities have access to affordable goods and services at lower costs.

TECHNOLOGY INNOVATIONS FOR GROWTH OF SMES IN NIGERIA; THE ROLE OF MANAGEMENT.