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All Journal Jurnal Inovasi Ekonomi
Ojo, Ayodeji Olusegun
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Economics, Econometrics & Finance Social Sciences

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Dynamic Capabilities and Growth Performance of MSMEs: Evidence from Nigeria's Federal Capital Territory Ojo, Ayodeji Olusegun
Jurnal Inovasi Ekonomi Vol. 10 No. 01 (2025): April
Publisher : Center for Economics, Business and Entrepreneurship Development Faculty of Economics and Business, Universitas Muhammadiyah Malang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22219/jiko.v10i01.28710

Abstract

This study investigates the effect of dynamic capability on the growth performance of selected MSMEs in Nigeria. Innovative capability and sensing capability were used as proxies for dynamic capability, while growth size served as the proxy for performance. The total population consisted of 2,825 MSMEs operating in the Federal Capital Territory of Nigeria, and a sample size of 350 was determined using Taro Yamane’s (1967) formula. Structured questionnaires were used for data collection and distributed to MSME operators in Abuja. Based on the regression model, the study reveals a significant relationship between dynamic capability variables (innovative capability and sensing capability) and the growth performance of MSMEs. Therefore, it is recommended that organizations focus on enhancing their dynamic capabilities to revitalize and develop both themselves and their employees in order to adapt to changing environments. Additionally, the study suggests that SME managers should harmonize their procedures for market sensing and innovation capability to consistently improve growth performance.
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